The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1927-03-17
money RATES
\ HOLD STEADY
BY RICHARD HATTON

Liquidation Of reserve bank
credit. which is usual after the
Christmas holidays, has been in
larger volume this year than in
any Of the preceding four years, q
according to the bulletin issued by
the Federal Reserve Board here
ard made public today.
In 1927, as In earlier years, .
states the bulletin, 1.-THE main fac
tor in the reduction of member
bank Indebtedness at the reserve
banks in the early weeks Of the
year has been the return flow of
currency from circulation, but the
principal reason for the exceptionally
large volume of the reduction this
year has been the magnitude OF
gold imports, which was greater in
january than in any other month
81 the past five years.
Liquidation of reserve bank
credit since the turn Of the year
has been accompanied by q consid.
lerable reduction in the demand for
loans at member banks, both loans
on securities and other loans,
largely commercial, with the result
that the loans of reporting anks in
leading cities were in February at
the lowest point since midsummer
or 1926.
In the money market these con-
ditionS have been reflected In a
downward movement Of money
rates, which are at present at about
the same level as year ago"
Commenting on changes in mem
hership in the Federal Reserve sys-
Sem during 1925 the bulletin says:
During the last half of the year
1926. there was u decrease of sc
IN the number of national banks in
active operation in the Federal Re.
kerve system, as shown bp periodic
e0ndition reports required of these
banks, and a decrease of in the
number of member State banks and
trust companies, making a net de-
cline OF lis in total membership
during the period.
Notwithstanding declines in the
humber of reporting banks, national
banks showed an increase of $780,
461, 900 in resources and State banks
nm increase Of nearly $817 1884, 000--a
total increase of about $1.184,455, 900
IN the aggregate resources of all
member banks =
II is expected that approval of the
Comptroller Of the Currency to the
plan of the board of directors of
the Second National Bank to In
crease the capital stock of the in
stitution to $750.000 will be given
q an early date.
Stockholders of the bank have
already approved the increase and,
according to present plans, the adj
litional $500 shares will be offered
TO stockholders Of record at SITS
per share on the basis Of one share
bf new stock for each two shares of
how held.
In fixing the price for the addi-
tional $250,000 the approximate
book value of the present shares
was taken. The market value of
the stock as indicated by price at
which sales on the Washington
Stock Exchange have been recorded
is 1915. the last few sales having
been at that level. The stock,
which is very closely held and sell
dom traded in on the exchange, be-
gan the year at 266, the 9-point
gain having accumulated since jan
harry.
w. w. Spaid, of william B.
Hibbs & Co., who has been spend
ing a months vacation in the south
is expected back at his desk next
Monday.
President Peter A. Druty of the
Merchants Bank and Trust Com.
pany has returned from a short
business trip to New York.
"The Hollywood GirP'-Bea-
erice BurtOn-starts Monday In
The Times. Read IL.
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