The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-01-27
MONEY FLOWING
TO BANKS
By RICHARD HATTON

its peak on December "a was fol-
lowed by return Of money from
circulation. which amounted to
about $44O, O0O,O 900 between Deem
Der "a and January Is, according
to q summary Of general business
and financial conditions throughout
the several Federal Reserve dis
tricts based upon statistics as con.
tanned in the forthcoming issue Of
the Federal Reserve Bulletin. This
decline in the demand for currency,
which was approximately the same
as year ago, was reflected in q
decrease for the same period Of
about $360,00O,000 in bills and Sc
curities of the Reserve banks.
Loans and investments of member
banks in leading cities declined DUR
ing the first half of January, but
were still at a higher level than at
any time last year. The decline OF
about 100000, 900 between January
and January 1S reflected de-
crease of about $3.50, 900, 900 in the
volume of loans on securities, off
set in part by q considerable in
holdings. ~
Call loan rates showed the usual
seasonal decline at the turn OF the
year but other money rates were
slightly firmer. The rate on bank
ers' acceptances increased during
the second week of January from
81 to as per cent and there was
also a slight advance in rates on
time money in the open market.
Foreign Security Issues
: a special feature Of investment
trusts in this country" states ar
article published by the New York
Trust Company. is that they may
be expected to prove Of some value
in connection with the flotation OF
foreign security issues in the United
States. Up to a year or so ago. :"
the article continues, foreign issues
floated here have been largely the
obligations of national governments,
and the factors TO be considered by
the investors in contemplating the
purchase of such securities have
been comparatively simple-consist.
ing largely of the outlook for. staDfi.
ity of government in the various
countries. their relative prosperity.
the yield to be obtained, and tile
reputation of the offering bankers.
Recently. however, the securities
OF foreign corporations and of small
political subdivisions have been
figuIInE more ana more prominently
in American foreign investments
The average investor would have
little knowledge OF these, and the
investment trust here offers both q
safeguard to the investor and an
opportunity to the sound, but posi-.
bly, little-known borrower abroad"
To complete its requirements for
track laying during the first six
months OF 1928, the Southern rail-
way system has just placed con-
tracts for 20,555 tons of new rail
for delivery during this period,
For Palm Beach
President Ezra Gould, OF the
Washington Mechanics Savings
Bank, left yesterday for Palm Beach
where he will spend a month at
the Breakers. President Gould was
accompanied by c. f.. Burton, and
will be joined later by Mrs. Gould.
No strengthening in money rates
is expected until the usual spring
credit demand sets in, according
to a. statement issued by the
Treasury yesterday.
In a review of insurance prog
ress during the last year the
United States Chamber of Com
merce finds that all forms of in.
surance-life, fire and casualty
have shown material increases. Life
insurance now in force in the
United States is estimated at $685.
OOO, 600, 900, while fire insurance
IL covering property with a total
.alue OF $3.50, 00O, 900, 900.
Vice President Francis G. Addi-
son, jr., of the Security Savings
and Commercial Bank, conducted
the class in credits of the Wash
ington chapter, American Insti,
tute of Banking, this week in the
absence of Vice President Edward
J. McQuade, of the Liberty Ma
tional Bank, the regular instructor
of the class.
At the annual stockholders meet
ing of the International Exchange
Bank held yesterday the follow.
ing were elected directors: E. J.
Aronoff, Hugh w. Barr. Peter Bor-
ras, D. Del Vecchio, DR.. Salvatore
Floria. Frank T. Selby, Gustave
Grifoni, J. e. Heffron, ]. G.. Lewis,
Frank Lozupone, Jerre Maiatico.
o. H. Miller, L. Neubeck, H. L.
Offutt, DR.. M. H. Prospect, 10.
seph Schiavone, Alphonse Tana.
John Vaccaro and Frank r. Full
Ter. Mr.. Fuller is the only new
member of the board, the re-
mainder of the directors being re.
elected.