Evening star., 1925-06-27
LOANS FOR TRADE
NEEDS DECLINING
Reserve Board Also Reports
Lower Wholesale Prices
During Past Month.

In It's review Of conditions. made
public today, the Federal Reserve
Board says that borrowing for COM
merclal purposes at member banks
in leading cities declined further be-
tween the middle of May and the mid
die OF June to a level lower than at
any time this year, while loans on
securities increased and reached a
new high level in June"
investment holdings Of these
banks also increased" said the re-
view, and total loans and invest
ments at the middle of June were
near the high point of the year.
AT the reserve banks there was
an increase in member banks borrow
ing between May 20 and June "a. and
on that date discounts for member
banks were in larger volume than at
any time since the opening of the
year. Further decreases in the hold
lngs or acceptances and of United
States securities brought the volume
of open-market holdings in June to
the lowest level since last Summer.
Wholesale Prices Lower.
conditions in the money market
remained relatively steady during the
weeks of June, Notwithstanding the
heavy Treasury operations In the mid
die Of June"
The board in it's summary also
showed production in basic industries
and factory employment had continued
to decline in May. with a further re-
cession in wholesale prices. Distribu-
ton of commodities was in greater
volume, than at this time last year,
1t was said, but slightly less than in
April.
The boards index Of production in
basic industries declined 6 per cent in
May to a level II per cent below the
high point in January.
B. & O. May Earnings Drop.
The Baltimore & Ohio Railroads
report of May earnings, made today,
shows a decline of s204. SAB in net
operating income compared with May
last year, although gross revenues
revenues gained $327.389. Operating
expenses increased s409,31O, the cost
of maint ntenance of equipment having
been $3.50, ,467 greater. Net operating
income of s12379,SO8 for the five
months of 1925 declined $245.0o3 under
the same period of 1924.
Fewer Commercial Failures.
Commercial failures in the United
States this week were 35 less than
the 425 reported TO r. G. Dun G. Co.
the week before, but Al more than
| the number a year ago. The largest
decrease this week was shown in the
| South.
Dun Reviews Business.
Duns review today further says:
Allowing for the slowing down
! which normally comes in different
Lines at this season, general business
| is without essential change. The un-
| even conditions that have prevailed
for many weeks still appear, but there
are more strong points and fewer un-
| favorable aspects than existed a year
| ago.
| The commercial situation is marked,
| as It has been for some time, by the
| disinclination of most buyers TO op-
crate beyond well defined needs, yet
| in many issues purchases are repeat
ed frequently and the aggregate vol
ume is very large. Early hot weather,
by quickening retail demands, reduced
stocks of Summer merchandise, par
ticularly of dry goods, and this should
react favorably upon some manufac-
turing industries
Sugar Production Grows.
| Cuban sugar production continues
] n
| estimated. and there is now every
| indicated possibility of its reaching
| 800, 900 tons, according to Federal
| Sugar Refining Cos. review of the
| industry. To June Is production to-
totaled 4965.5S5 tons, or 940,14o tons
greater than for the same period last
! year.
More Freight Cars in Use.
! Class / railroads on June IA had
! 313,4 surplus freight cars in good
repair and Immediately available for
! service, according TO reports filed to-
day with the American Railway AS
| sociation. This was decrease of
! 5.311 under the number reported on
| June I, due principally to increased
| demand for coal cars.
A change will appear in the form Of
| reporting on the condition Of national
banks in the next bank call, expected
| soon. This was revealed today in a
| letter from Controller Mcintosh to ma
| tional banks, explaining the change
| to be made. Copies Of the form also
| have been received.
The change. according to the letter,
requires inserting under liabilities"
| item 40, which calls for amounts rep
resenting agreements to repurchase
! United States Government or other Sc
curities sold" These items have, here
| tofore, been Included under the head
| ing of bills payable
Capital Traction Gossip.
! The strength shown by Capital Trac-
ton in trading on the Washington Ex-
| change continues to be a subject Of
considerable discussion in local fnan.
| cial circles.
| Yesterdays activities whereby 260
shares sold at 100 and 90 100iA were
| taken as further evidence that the
stock is maintaining it's usual position,
| with the recent extra dividend of 1A,
| which may be informally added to the
value Capital Traction is being men,
toned as having established new
/ recent high"
! How far the influence of the North
| American Company, which has been
| accumulating Washington Railway
and Capital Traction. may be respons-
| ible for this strength is not clear
| The North American, however. is said
| still to be interested in acquiring these
| two stocks. Reports that the North
American company might also be in
terested in other local public utilities,
such as Washington Gas were dis
counted today in circles close to the
! company.