Evening star., 1924-06-12
RICHMOND RESERVE
BANK TO CUT RATE
Rediscount Change Forced by Ac-
tion Of Federal Banks in
Boston and New York.
RAILWAY COMMON HIGHER
Bell Telephone Rights Traded in
on Local Exchange.
BY CHAS. T.. SHAEFFER.

Action of the New York and Bog-
ton Federal Reserve banks in mark
ing down their rediscount rates 10
" per cent yesterday causes close
observers of the money market TO
believe that a general reduction of
the rate of AZ ysr cent maintained
by eight of the twelve federal insti-
tutions is imminent. Both Cleveland
ana San Francisco reduced their rate
10 per cent sh ort time ago.
An endeavor 10 stimulate business
recovery is undoubtedly the motive
oehlnd the actiov. From the nrac-
.lcal standpoint the change means
out ilttie, inasmuCh as the banks arc
now not borrowing from their
reslonal mem bera. From the stand
point of business psychology. how
ever, 1t is believed the cut NAV in
spire a degree OF confidence and re
suit In greater business activity, or
course, the earning assets of the in
stitutions will be materially en-
hanced.
Tire reductions: are expected to
1orce Similar action, not necessarily
10 the same extent, throughout the
entlre reserve system. The reason
ior this is that il will tend to diyert
balances from sections MAINTAINING
attract borrowers. Thus credit con-
dltlons elsewhere will become easier
The Fifth Federal Reserve Bank.
located at Richmond, and which nun
oers In its membership all local
banks. will shortly follow in turn Il
is believed, but District bankers are
not looking for reduction below 4
per cent inasmuCh as the local cen
trai institution is one OF the '<weak
sisters" of the system.
CaI for money on the reserve
banks has been slack for the last
several months, some of them actually
operating at loss during this time.
Bank Officers Elected.
The board of trustees of the East
Washington Savings Bank has elect
ed the following officers for the ensu-
ing year: John e. YoSt, president.
Samuel H. Walker, first vice presi-
6ioe8f 6snt; Lewis asa F1emer EsIntI secsnd yice
secretary and treasurer.
In addition to these officers, the fol-
lowing constitute the board: John c.
w. Beal. James A. Donohoe, Gratz
f. Dunkum, John Ford. w. r. c.
Hazen, Michael \. Lynch. William 4.
Lynch, II. II. Mckee, Morris f. Mar
low. William n. Payne, jr., and John
c. Weldon.
New Financing Allowed.
Acquisition by the Missouri Pacific
Railroad Company of one-half of
the common stock of the Denver and
Rio Grande Western Company has
been authorized by the Interstate
Commerce Comm ission-
The Denver carrier was authorized
TO issue S29,S0S,0o0 of general mort
gage bonds as cumulative income
bonds for the period from February
1, 1924, to February l, 1929, and to
issue s16,445,6o0 of preferred stock.
This order is an amendment to for
mer decision.
Purchase of the stock by the Mis-
state of Colorado, but was supported
Missouri Pacific operates.
Railway Common Higher.
Common stock of the Washington
Railway and Electric Company con-
tinued its upward march on today's
exchange, twenty shares changing
hands at 75s and 752. 1t closed
asked. In the mean time the preferred
issue was strong but unchanged at
73A and 1875.
A feature of the days trade was
transactions in rights of the Amer
lean Telephone and Telegraph Com
pany. a total of 1875 of this paper
sold at 3k. Capital Traction was
firm at unchanged prices, as was
Washington Gas at 4S1z. Mergen-
thaler was slightly above its previous
close, fourteen shares selling at 1917.
and an odd lot of Lanston brought
72k. Real Estate Title Insurance
Company had sales at $50 and frac-
tionally under.