The Washington times., 1927-07-20
SEE
BIC BUSINESS
d. RIcHARp HATToN

IL
II is evident that the buying
what during the past six months,
according to a majority Of statisti.
cal compilations covering this pc
Rod. On the other hand, the pres,
ent trend appears to be toward
more liberal purchasing and the
prediction is made that the slack
end Of the last six months Of the
year.
Continued growth of bank credit,
Particularly in financial centers, a
sustained volume of production and
trade and the absence Of further de-
clines in the general level of CON-
eral Reserve Bulletin, ARE the out
standing characteristics Of the bust
ness situation at the close Of the
first half of 1927"
Conditions in the money mar
ket have been fairly easy, and
money rates have moved within a
narrow range. The volume of re-
serve bank credit in use has fluctu-
ated since the end Of January around
the $1,000, 100000 level, current
changes beng influenced chiefly by
International gold movements and
by temporary conditions incident to
Iarge-scale Treasury operations.
According to a recent ruling of
the general counsel Of the Bureau
Of Internal Revenue, the interest
paid by Joint Stock Land banks
to holders OF farm loan bonds Sc
cured by farm mortgages may not
be deducted from the income. in
the preparation of income tax re-
turns. Under the Federal Farm
Loan Act farm loan bonds are Is
sued by Joint Stock Land banks.
The proceeds from the sale Of
these bonds are invested in first
mortgages on farm lands, the mort
gage notes being deposited in trust
with the farm loan registrar as
collateral security for the farm
loan bonds.
Considerable interest is being
manifested in the financial district
in the recent announcement of the
taking over of the Dean, Onatavia
accounts here by the stock broker
age firm of e. A. Pierce & Co,
with offices in the Transportation
Building. Comment regarding the
details of the transaction was with
held today by both Bernard A.
Smyth, manager of the local office
Of e. A. Pierce & Co., and Harmer
Reside, manager here for Dean,
Onatavia, both officials stating that
any definite statement regarding
the future conduct Of the offices
would be made from the main of.
flee OF E. A. Pierce & Co. in New
York.
Thomas L. Brahany, Of Crane,
Paris & Co., expects to leave
Washington next Saturday for
Eaglesnere, Pa, where he will
spend two or three weeks. Mr..
Brahany's family is spending the
summer at the Pennsylvania resort.
President Peter A. Drury, Of the
pany, has returned from a short
mont. President Drury's estate Is
located on the very top Of the noun
tain and Is one of the most pictur-
esque and, at the same time, one
Of the most comfortable homes in
the Bluemont region.
President Harry v. Haynes Of the
Farmers and Mechanics National
Bank is at Atlantic City for a short
vacation. He will probably return
to Washington in about a week.
With the public offering of $780,.
100000 sof Detroit International
Bridge Company securities the
largest undertaking of its kind on
record-American bankers, builders
and engineers will bring to realiza-
ton an ancient dream Of early
American Indians. Proceeds Of the
financing will link Canada and the
United States together by direct
automobile route across the Detroit
river.
In the first half of the year the
railroads of the country loaded 49,
826,72 cars with revenue freight
compared with 25,00S,151 in 1926, a
gain of 1.3 per cent, and an increase
Of Al per cent over 1925. Car
loadings are conclusive evidence of
the continuance OF heavy freight
movement, which, If continued, will
mark 1924, 1925 and 1926 as three
Of the great transportation years.