Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-16
S9()O,O)D,OOO GAIN
IN BANK CREDITS
Reserve Board Lists Rise as
Feature of Half Year.
Financial Notes.
BY EDWARD c. STONE.

BY EDWARD L. STONE.
The Federal Reserve Board lists
continued growth of bank credit,
sustained volume of production and
trade and the absence Of further de-
clines in the general level of COM
modify prices as the outstanding
characteristics of the credit and bust
ness situation during the first half
year. An increase of more than $780,
600, 900 between the seasonal low point
in February and the high point at
the close of June occurred in loans
and investments of the members of
the Federal Reserve system. while
bank credit was larger at midyear
than at any previous time.
Reporting on national business con-
ditions, the board declared that indus
trial production had increased in May,
continuing at a higher level than
year ago. Distribution of commodi-
ties was in smaller volume, with the
general price level of wholesale COM
modities changing little. Output of
manufactures increased considerably.
although many commodities ranged
around the April level. Sales Of retail
stores showed more than the seasonal
decline.
Bond Houses Clearing Shelves.
"The stock market for some weeks
has experienced a period of rest and
reaction, but the technical position of
the bond market has probably been
improved" says Moody's Review. "In.
dications are that some progress has
been made by bond houses in reduc-
ing their inventory of unsold new
issues.
This may lengthen the time during
which the stock market can remain
upon this high plateau, for it should
curtail the borrowing requirements of
bond houses and augment the supplies
of loanabie funds in the New York
banks.
mo serious dangers are facing the
bond market and in spite Of tenn
porarily horizontal movement the
next really substantial change is
likely to be upward. even If this
change should be postponed until
some time next year"
Caution i'm Stocks Advised.
The recent tapering off in new bond
offering has resulted in a much
easier money market, which condi-
ton should continue until the crop
/.
uuirements make themselves felt.
probably in August, Hornblower &
Weeks say In their current invest
ment review.
The immediate outlook is for
firm trend to bond prices, the review
adds, some recovery already having
resulted from the reinvestment of
July / funds. The average of 40
bonds, according to a compilation
by the firm, stood at 97.06 on July s,
the highest level in month.
Pending improvement in crop con-
ditions and in the trend of steel,
motor and other basic industries, the
firm believes q cautious attitude
should be adopted in regard to the
stock market for the next few weeks.
New Corporation Formed Here.
The Bankers Consolidated Corpora
ton of the District Of Columbia has
been organized to purchase local and
other bank stocks in much the same
manner as is done by bank stock cor
porations in other cities. The officers
are Julius /. Peyser, president; Eugene
A. Smith and Victor Cahill. vice presi-
dents; James Y. Pennebaker, secre-
tary; Benjamin +. Adams, treasurer;
Milton Strasburger, counsel; Fred Nc.
Kee, trust officer; George E. Edelin,,
attorney, and Jerome Friedlander. as.
sistant treasurer. An advisory council
includes Francis G. Addison. jr.
David l.. Frank, d. +. Croft, Sol Her
zog, William A. Hill, George II. Judd,
Laurence Mills. Sidney w. Straus, w.
c. Sullivan and Adolph Weyl.
The authorized capital is 10000
shares of 6 per cent cumulative pre-
90 Ny.a
share of common stock will be sold to
each purchaser of the preferred at
$3.50 per share. The company plans
to operate along the general line of in
vestment trusts, Investigation being
one of the special objects in view.
Kresge Earnings Up In Half Year.
S. S. Kresge Co. reports net income
of $5,756,039 for the half year, equal
attire preferred dividends to $1.54
share on the common, against IS $685.
ATS, or $1.35 share on a smaller
amolnt of common outstanding in the
first half of 1926.
Institute Convention Ends.
The A. I. B. convention in Detroit
ended yesterday with the election of
p. r. Williams of Los Angeles as pres
ident. The social events wound up last
evening with a ball. Next years con.
vention will be held in Philadelphia.
Most of the Washington delegates
will be back in the city Monday. as
they plan to go on and take a look az
Chicago before they return.
Veterans Notes Being Redeemed.
Veterans Bureau machinery is in
full swing redeeming the adjusted
compensation notes of former service
men who have failed from various
causes to pay off the loans they OBJ.
tanned from banks.
Approximately $500 checks, total
ing $4,000. were mailed by the
bureau to banks throughout the
country yesterday. The bureau is
acting within two days of receipt of
the notes, 1t was announced. To date
banks have sent in about 5000 of the
notes.
Auto Sales Seasonal.
slightly flrmer tone in automo.
bile sales is reported in some sections
of the country, but the seasonal trend
continues to rule the market and no
pronounced upturn is expected until
some time in August, says Auto.
motive Industries. Production is
being accelerated by those factories
which have brought out new models
and favorable reception to some of
Inc new lines accounts for a CoOdly