The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1927-06-02
money RA Is.
HOLD LEVEL
By RICHARD HATTON


Money rates in May remained at
approximately the same level as in
April and were higher than in any
corresponding month in any year
since 1923. according to the
monthly review Of credit and BUSH
ness conditions issued by the Fed.
eral Reserve Bank Of New York.
Loans and investments of COM
naercial banks, according to the
same authority, increased during
May to the highest level of the
year. Nearly $90,0o0,000 of the
$165, 600 900 increase for all report
ing banks occurred in the New
York district.
Loans to brokers and dealers in
securities placed by New York city
member banks increased over $780,
100000 to the, highest level since
the beginning of March, 1926.
Total loans secured by stocks
and bonds showed a corresponding
increase, and for all reporting
banks were $12o,000,000 higher on
May is than month previous and
$3.50, 900 ,000 higher than one year
ago. and in the New York District
were $60,OO0,0 600 higher than a
month ago and. Sos, 600, 900 higher
than one year ago. Commercial
loans in all Federal Reserve dis
tricts held at a high level during
May.
increase in deposits brought
about an increase in the required
reserves Of member banks and this
as an important factor in mod
erately firm money conditions in
recent weeks.
washington Trust Company Of
6icials are interested in decision
of the Supreme Court in which a
trust company is relieved from
liability for the proceeds OF checks
drawn upon the agents of a bank
In Canada and deposited in New
York bank.
Al Canadian having accounts with
two New York banks gave his son
general powers of attorney with no
qualifications as to the purpose for
which checks might be drawn. Bhe
court held that the father had no
knowledge that the. son was mis-
anuropriating his money until he
absconded. The bank, the Supreme
Court held, had notice that the
checks were drawn on the fathers
account, but they were drawn pu~'
euant to an unlimited authority
and it could not see on what
ground the bank could be held to
assume that checks thus lawfully
drawn were required to be held or
used for one purpose rather than
another.
Approximately 200 requests for
reservations for the annual con-
Vention Of the District OF Columbia
Bankers Association have been re.
ceived by Chairman John M. Rior'
don. of the transportation commit
tee with each mail bringing more
delayed applications. Both General
Chairman Lanier p. McLachlen ana
Chairman Riordon stress the de-
STABILITY Of the last minute ap-
plicants getting their requests in
as soon as possible. With the con-
Vention only a week away 1t is
absolutely necessary for the COM
mittee to know just where 1t
stands in regard to required &C.
commodations.
A report which indicates the
highly active state of the life in
surance field at the present time
is made by the Acacia Mutual Life
Association, whose headquarters
are in this city, which contains
figures covering January, February,
March and April Of this year, and
the total, and the corresponding
statistics for 1926.
During the first four months Of
the current year new business to-
tailed $16,94S, 900. while the figure
for the same period last year stands
at $11, 7S3,500.