The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-08-10
HIGHER NONE
IN Al TU|NN
SEEN
BY RICHARD HATTON

ny Ah1GftAA1D HA1AUN
Believing business has nothing t
fear from the presidential campaign
and that the position Of the Fed
eral Reserve is gaining In STABILIZE
ing influence. recent editoria
expression in Trust Companies, 9
financial magazine, predicts high
money rates this fall and says;
In the light OF recent restraints
on stock market gymnastics and
undue employment OF bank credit
in the securities market, there ap
pears q more wholesome respect for
Federal Reserve discount "ges
lures and open market policy. Ac'
curing stature from experiences
and painful lessons Of the post war
imitation period, the Federal Re-
serve exercises today q stronger
influence over money market and
credit situation than at any time
since the system was inaugurated.
Increase In member bank borrow
ing 1T the Federal Reserve banks,
Withdrawals of gold and speculative
funds have impaired greater po-
tency to Federal Reserve rediscount
rates and sale OF Government Sc
curities as means OF checking
stock, market speculation. But
more important is the well-tined
and loyal support given by the
large commercial banks in bringing
pressure To bear upon the specula-
tive talent.
Menaclng Situation
1T Is now well recognized that
the progressive volume OF bank
credit from last February to the
end of May. III the face OF gold
exports. Increase OF brokerage loans
and slight demand from CONNER.
cial sources had attained menac-
ing proportions which called for
drastic action. The rise in money
rates to the highest figures since
1921. the decrease in brokerage
loans since the stock market break
and the halt lii member bank
loans and investments, all COM
bic 10 show that there does exist
sion must yield obedience.
liz LII III LIZ AAnAA JCNAl Acs-
v0re d survey OF what has hap
psneed during the first six months
Of 1928 as basis for probable
developments during the remain
der OF the year. 1t is now evident
that the uncertainties OF the pres.
idential campaign entail TO issues
which should immediately affect
business. While stock speculation
has apparently bowed to saIutary
restraints, it Is significant that
industry and business generally
is on better basis than six
months or i year ago. Deflation
OF speculative positions should not
have any more serious effect than
paper losses, because OF the cali-
tious attitude observed by business.
Indices Of Trade
'.The various induces of trade.
such as car loadings. b;;:.c....a-g, con-
lstruction, production in steel. au-
tomobiles, the volume OF bank
,ciearings, the status Of employ
snent and other major factors, all
combine to give assurance that
the remainder of the year will
continue fairly prosperous. High
money rates. which are looked
for as continuing through the au-
tumn period, should not encroach
upon actual business requirements
because Of the surplus accounts
built mp by corporations and the
leverage which is in the hands
Of Federal Reserve authorities. To
the extent that high money r.
a reflection or a more rigid con.
troll Over stock speculation and
diversion Of bank credit into Sc
eurtty loans and frozen assets.
IL may be properly viewed as a
corrective influence"
Named Chairman
Frederick n. Cox, cashier of the
Commercial National Bank. has
been named chairman OF the Dis
trict of Columbia Bankers Associa
ton committee on standardized
President Edward j. McQuade, o.
the Liberty National Bank. and Il
expected to carry forward the work
which the committee has been do
ing for several years. Chairman
Cox made an enviable record "
handling the transportation Incl
dent 10 the June convention OF the
bankers organization.
President Robert v. Fleming, Of
Riggs National, has returned aftel
4 vacation during which he notorec
through New England and parts o.
Canada.
President Victor B. Deyber, O
Second National, il spending sew
eral weeks, vacation on a motor
trip through New England.
The chairman of the board Of tn,
National Bank of Washington
Clarence F.. Eormeht. has returned
from a six weeks vacation at Oh
Point Comfort. Va.
stockholders of international Pa
per Company are being reminde,
to deposit their stock under tn,
plan which contemplates the forma
ton Of International Paper an,
Power Company as a new holding
company. The final date set TO
deposit is August Is.
CHICAGO GRAIN MARKET
CHICAGO. Aug. 10. Grains wer
sharply lower in early trading to