Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-29
LAND BANK LOWERS
ITS INTEREST RATE.
Potomac Joint Stock InStitu.
ton Reduces Farm Loans
to 5 1-2 Pct. Basis.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
The Potomac Joint Stock Land Ban
has announced reduction In rate o
interest from 6 per cent to 5ia pc
cent on farm loans in Maryland an,
Virginia negotiated for and closed afte
April 10
The farm loan act provides that Their
shall be only per cent differentia
between the rate of interest on farm
loans and the rate of interest on farm
loan bonds issued against such mort
| cages. Therefore future issues of tn,
Potomac Joint Stock Land Bank viii
carry 4ls per cent coupons instead O
S per cent coupons.
This action was forecast in the an
4 nual report of George A. Harris. presi
dent. to the stockholders when he an
nounced that the issue of farm loat
| bonds at that time had been reduced
from 100000 to $500 900 on account O
the probability of reduction of the
| interest rate on future bonds.
In commenting on the reduction II
the interest rate President Harris stated
| that this action was based primarily Oh
the conviction that the bank woul'
have no difficulty in selling its bonds
on a Al, per cent basis. and thereby
giving the farmer the advantage of {
| ST, per cent loan. It is in line with
| the general financial condition of tn;
country as reflected in the lowering o.
| yields on investments, as result OF
| comparatively easy money market
There is apparently. at the present
| time, large supply of funds for in
| vestment purposes and 1t is becoming
increasingly difficult to find sound In
vestments returning satisfactory yields
First Land Bank to Cut Rate.
This condition. the banker asserted. Il
| especially reflected in the present low
Yields on Government securities and al
| high-grade bonds. 1t Is further re-
/ flected in the fact that. because OF the
plentiful supply OF money and the low
yields on investments, many CONNER
| cial banks are seriously considering re-
ducing the interest rate on deposits. The
action of the bank in reducing its in
terest rate is approved by 4he Farm
Loan Board and will, Mr.. Harris be-
| lieves. meet with the approval of the
| investing public.
The Potomac Bank is the first joint
stock land bank In the East and SoItf
| to lower the interest rate to borrowers
| and its action will be of much interest
| to the farmers in its territory. as well as
to the other banks throughout the
| Federal farm loan system.
| Mr. Harris stated that agricultural
| conditions in the States of Maryland
and Virginia are stable. having made
much improvement in the last few
years. The building Of good roads. di-
versificaEion of crops, improved mar
kets and increased prices for farm prod
ucts particularly tobacco, live stock
and dairy products. have greatly in
creased the value of farm land and the
ability of the farmer to meet his in
terest payments.
The Potomac Bank has out standing
in Maryland and Virginia in excess OF
So 500 600 on farm loans, and has is
sued and outstanding in excess Of
$4,000 600 in farm loan bonds bearing
per cent interest.
Joins Local Broker Office staff.
Victor CahiIl, who for some years has
been identified with real estate opera
tons In washington. has become asso-
ciated with the New York Stock Ex-
change firm of Wright. Shade 81 Co. at
their local office. Connecticut avenue
and DeSales street. MIR. Cahill was
educated at the University Of Virginia
and Is the son of the late James A.
Cafill. who was the vice president OF
the Commercial National Bank and
vice president Of the Yellow Cab Co.
Agency Makes Unusual Showing.
Eight out of the 10 Mutual Benefit
Life Insurance Co. representatives in
Washington have qualified for the COM
pany's honor roll. thereby earning an
invitation to the company's convention.
This is striking showing, as less than
10 per cent OF the agents throughout
the country qualified
John II. Snyder of the local agency
viii be chairman of one of the meet
ings. which viii be held In the COM
Dany's new Office building at Newark
today and tomorrow. The others quail
flying are James A. DeForce, Joseph
w. Gibson. George T. Howard. Adolph
Krechel. Edwin p Parker. Frank D.
Roach and Dwight T. Scott.
Local Market Very Active Today.
Washington Gas and Union Trust
stock were the market leaders in an
exciting trading session on the local
exchange today. Gas opened at 90 on
55-share sale. II then dropped to
8es4. sa. N and back to 81 and "a. but
closed at 89ia The sales totaled l25
shares.
Union Trust Co. stock opened at
3l2. advanced to "a and IN and then
settled back to 3I2Iz and 3I2, but
closed at 1922. The days sales reached
100 shares. the largest trading in any
local bank stock in long time.
Capital Traction was stronger than
Yesterday. IL opened at li0la, but
closed at III. Sand e. Gravel sold at
i0514. Peoples Drug was back up to
1877. Sanitary Grocery preferred at lot
and Potomac Electric Power 5H2 per
cent at i073s. Eighty-four shares OF
Railway &, Electric preferred changed
hands at 1881. Bonds were firm but
quiet,
Heard In Financial District.
President Robert v. Fleming of the
Riggs National Bank is spending few
DAYS in Florida.
W. j. Waller. second vice president OF
the District Bankers Association, pre-
sided at the bankers luncheon at the
willard this noon
The Treasury Department has noti-
! fed the Senate banking and currency
committee that IL il opposed 10 the Nor
beck bill permitting State taxation Of
national banks. MIR. Mellon says thf
| national banks should not be weakened
/ by what he considers tax discrimina-
! ton
January net earnings OF American
| Ice Co. were sos, 1853 after expenses anC
interest but before Federal taxes ane
| depreciation.
Since taking over the 10 Old Dutcf
Market stores here last week. the Ameri
can Stores Co. has added 305 In New
Jersey, making total OF 2,450, Tn
latest purchase involved upward o
81, 900 600.
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| FEDERAL LAND BANK BONDS
| tQuottd by Alex Brown Il sons Closing
! Rate atnF1ty BAD Asked Yield