Evening star., 1926-10-08

weeks In London and three weeks 1T
Ireland. Before sailing for home he
enjoyed few days at Brighton, the
popular English resort. AS the Wash
ingtOn banker went abroad for a rest
he made no special study of economic
conditions, although he naturally
made many Interesting observations
Mr.. Drury was accompanied by Mrs
Drury and their son Paul. They re
turned on the Majestic. having only
one stormy day on the trip.
Reserve System Study Planned.
Local financial circles are much in
terested in an announcement that a
broad study Of the banking and cred,
1t machinery of the country. with
special attention to the operations of
the Federal Reserve System in nor
NAL times, will be undertaken under
the general auspices Of the Chamber
of Commerce of the United States.
The main Objectives Of the study. 1t
was explained today. are to differen-
tiate between the operations of the
cOuntry's credit machinery in the
more normal situation of the past
two years. as contrasted with the
emergency conditions of the previous
eight years; to develop sound conclu-
sionS as to the permanence of various
functions of the Federal Reserve Sys-
tenn, and to promote public under
standing of the Nations financial
mechanism in the light of the new
economic situation of the country.
The study will be conducted for a
year by five committees. which will
include representatives of labor, agri-
culture. commerce. industry and
finance. Charles E. Lobdell of this
city, fiscal agent of the Federal Land
and intermediate Credit. Banks, will
assist in the probe, as will Julius II.
Barnes.
Power Issue Oversubscribed.
The 81 100000 per cent preferred
stock Of the Tidewater Power Co.,
made yesterday, was reported today
as having been oversubscribed. The
stock was sold at 9712 and accrued
dividend The TideWater company
furnishes electric light and power in
Wilmington. y. c., and vicinity. III
connection with the new stock issue
the firm reported that dividends OF
preferred stock had been paid regular
ly for the past IS years and on the
common for 16 years. The latest issue
was handled by Stroud. kurtZ & Co.
Eastman, Dillon G. Co. and A. f. Fit
kin & Co.
Delegate to Bank Convention.
Bertram Chesterman. executive vice
president Of the Morris Plan Bank in
this city, will attend the seventh con
vention of these banks at Asheville
y. c., on October IS. 10 and 20. Be
fore his connection with the Morris
In New York. Boston and Washington
Mr.. Chesterman was a national bank
examiner in Virginia and later in New
York City. He says the coming con
vention will be the largest yet held
as there are now l01 Morris banks and
companies with 90 branches operating
in Is cities.
Each year the convention develops
new ideas which project the service
into larger fields, he says. This yeal
installment buying, which is so much
in the public mind, will be widely
discussed. 1t will be reported at the
convention that the Morris banks have
loaned $3.50 100000 since the first bank
was opened in Norfolk in 1919. and
that the public now owns s62. 900. .00C
in the systems interest bearing GER
tif1cateS of deposit.
Liggett Retail Sales Increase.
Retail sales in the 433 Liggett drug
Stores. controlled by the United Drug
Co. of Boston. were $4.527. 1872 in Sep
tember. an increase of $968,264 over
the same month last year. and for
the nine months this year S3S, 249
gain of S7,153,976 over the CORE
spending period of 1925. Eight new
stores were opened in September in
various cities Of the country, one in
Detroit, making the total % in that
city.
Reserve Bank Discounts Drop.
Volume of rediscountS in the Federal
Reserve system as a whole, and also
at Richmond. dropped sharply during
the week ended October s. In the
fifth district the decline amounted tC
$3.50 900 to Il total of 3.164. 900
Bills bought in the open market in
this district at the same time We're
S1.110,000 higher than the week be
fore
The consolidated statement of the
II banks combined showed a aror
of s93.041 900 in bills discounted and
decline of $2.361 900 in paper bought
in the open market.
Cash requirements in connection
with crop marketing brought about
an increase of $2.113.0O0 in note cir.
culation at Richmond. Member hank
reserve deposits were nearly the same
as the week before at $eS. .687 900.
The Richmond reserve ratio stood
at 64.75. against 64.17 per cent the
week before. The ratio for the sys
tenn as a whole was 73.7 per cent.
Other Financial Notes.
The Public. Utilities Commission
was to hold il hearing ut . O'Clock
this afternoon on a petition of the
Washington Gas Light Co. to issue
further securities.
The latest Treasury statement
shows purchase October . of $4,000.
900 of Third Liberty loans. making
total purchased by Government in
the first five days of October 81 800.
600. Purchases were made for sink
ing fund and bonds were retired
The Monthly Bulletin. official pub
lication of the District Bankers AS
sociation. is now in the hands of
the membership.
Trading Caution Is Urged.
Discussing Politics and The
Market" in its current issue. Nc
Neers says:
political considerations are fire.
quently very important factor in
shaping the trend of business. finance
and speculation. To suggest. how
ever that 1t is sound policy for the
investor to run by all the financial
danger signals merely because of the
argument that some interests are
likely to support the stock marke et
at extremely high levels until after
election is absolutely unsound."
FEDERAL LAND BANK BONDS