Evening star., 1924-07-10
new BANK METHOD
IN FIT TIL District
Richmond Changes Rules in
Use on Short Loans-Rail-
way Common at New High.
EY CHAS. p. SH.AEFFER.

The practice of discounting paper
for short periods under repurchase
agreements will be discontinued by
members of the fifth federal reserve
district on and after July IA, and re-
version to the use of promissory notes
of collateral form whenever 1t is de-
sired to obtain advances for a period
not exceeding fifteen days against
eligible. acceptable paper will be fol-
lowed, according to instructions from
the Richmond regional member this
morning.
There is now no occasion to resort
to the repurchase agreement, 1t was
pointed out. since under the revenue
act of 1924, approved June 2 last.
promissory notes executed and dated
on or after July 8, 1894 do not re-
quire United States documentary
stamps.
This order supersedes one dated
May Fl. 1928, in which local members
We're advised that it had been deter
mined to give them until further no.
tice the privilege of discounting with
their regional members for periods of
hfteen days or less eligible and ac-
ceptaole paper having a longer ma
tnrity than the period for which dis
counted, upon the execution of a re-
purchase agreement at the time of
ofrerlng such paper. The purpose of
this arrangement was to enable men,
bers to obtain advances for short Pc
rods without mourning the expense
or afhxing documentary stamps
which were then required on member
banks collateral notes secured by
eligible paper.
Member banks will however, until
further notice, continue to have the
privilege of anticipating any paper
held under discount for them, includ-
ing the short-tine obligations above
described As heretofore, rebate of
the uhearned discount will be allowed
at the discount rate current at the
time of anticipation, provided such
rate is not greater than the rate at
which the anticipated paper was
originally discounted.
Railway Common Gains.
Common stock of the Washington
Railway and Electric Company scored
a new high in public transactions
this morning, ten shares selling at
1874. This price represented the peak
OF a succession of advances during
the day, the issue opening at 78. A
total of Sixty-eight shares changed
hands.
Washington Gas stock also made a
new high mark for the present move
SdiCS VI Twelve SndrSS TINS
security opening trading at 81. Sub
sequently the price dropped to 501z.
Railway preferred was strong at 75A
but National Mortgage and Invest
ment preferred was 'shaky" at S4
and Il: Five shares Of Capital Trac
tion sold at 934.
Bond trading was confined to small
lots Of utility issues at unchanged
prices
The Washington Loan and Trust
Company has declared the 12Sth quar-
terly dividend OF $3.50 per share, pay
able August 1. Books for the trans
fer of stock will be closed from July
"a to August l, inclusive.
Algernon S. Gardiner, president of
the Standard National Bank, today be-
gan Six-week trip to the Yellow
stone National Park and to Alaska
Wistar NJ. Balderson, vice president
of the institution. will be in active
charge during Mr.. Gardeners abb
sence.
Loading of revenue freight for the
week which ended on June % totaled
908,355 cars, an increase of 1855 over
the week before, according to reports
filed today by the carriers with the
American Railway Association. Com
last year. this was d decrease of
1916 cars. but an increase of $3.50
cars over the corresponding week in
1922, when, because of the coal min
erS strike, freight traflc was greatly
reduced.
Loadings of grain and grain products,
coal. ore and miscellaneous freight for
the week of June % showed increases
over the week, before, while live stock,
coke, forest products and merchandise,
including less than carload lot freight,
showed decreases.
Grain and grain products loading for
the week of June % totaled SO, 40s
cars, an increase of 1875 over the
week before and an increase of 1921
cars over the same week last year.