The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-07-20
I NE TO COUNT
COST, j. s.
IS TOLD
Rx RICHARD HATTON

Wnu9 admitting thaF pupHc 81
tention is centered upon the presi.
dental campaign, Trust Companies,
= leading financial magazine. de-
clares: More important than any
8 political issue is the obligation rest
ing tlpon responsible business and
financial leadership to give due
heed TO long delayed but inevitable
adjustments that should make for
greater poise and sobriety in deal
ing with credit expansion and In.
ternational economic relations.
Changes in credit policy and
distribution Of surplus gold ara
now in progress and becoming
more clearly defined upon the hori.
ION. These have a profound bear
Ing upon continued integrity OF
business and the material progress
OF our people. They imply a time
~ awakening from a long spell OF
Eeis-deIusion, induced by easy
money and paper profits; giving
encourag ement- TO financial bucca-
neering and Turing a large part of
onr population into extravagant
commitments and speculative ex-
eesses The prospects to which clear
thinking men Of business and
finance will address themselves IS
That the phenomenal of sustained
American prosperity must yield to
common sense realities and neasur.
abl0 formulas.
Receives Setback
''It Ii doubtless because Of big
volume OF gold exports. higher
money rates and VIGOROUS gestures
BY the Federal Reserve Board, that
unbrfdled speculative license has
recently received salutary check.
Since last september, net total
OF nearly half billion dollars of
gold has left these shores, reducing
the nations gold stock from the
high point of 81 sos, 304;67S in May,
1927 to $4,l6I, 1872 ON June 1,
1928, and as compared with latest
estimate OF the worlds stock oil
gold placed at $9.475. 000l,00 Dur
ing the past twelve months. the
gold reserves Of Federal Reserve
Banhs has decreased $500 900, 900,
from So COS 1871 900 to So, Cos, 94S 900.
Ia the face OF diminishing gold
supply and reserves there has been
rapid Increase in volume of bank
credit. mainly extended in invest
ments and loans on stocks and
bonds. reaching the highest point
on record during the middle Of May,
and IN the case Of reporting mem
Der banks alone. representing 40
per cent OF total banking resources,
Of approximately two billions Oe
dollars in the last eight months.
Accompanying this growth Cf bank
credit there has been an increase
OF oyer three billions in deposits of.
all commercial banks since last
July with member bank borrowings
AT Federal Reserve Banks exceeding
the billion mark last month and
brokers loans in New York moving
mp with startling activity TO a
new crest of four and a half billion
during the middle Of May. Quite
logically it became necessary for
the Federal Reserve Board. in tacit
agreement with leading banks, to do.
something to arrest this situation
and there is good reason to believe
that their joint efforts have been
effective. !"
Southern Diaries
A net profit of $2SS,S51 is reported
by Southern Diaries, Inc. and sub
salaries for the quarter ending June
30, 1928, after depreciation, interest,
amortization. minority interest, etc.
compared with a loss of $165, 124 in
the preceding quarter and profit Of
$237,444 in the second quarter Of
1927.
For the first six months OF 1928
profits totaled $12O,527 after depreci-
alton, amortization. interest. etc. The
stock outstanding as of December 81
last consisted of 162, 500 no par
shares OF class A and 235 900 no par
shares ri class b.
The consolidated income account
for the second quarter shows net
sales Of 1881, SCI, compared with
$2.313.729 for the first quarter. Net
sales for the first half year amounted
to So, 695 800. Expenses in the second
quarter were $2,768,6 against 3d.
156.125 in the first quarter.
The Canadian Bank of Com
n1erce, by its purchase of the Stand
ard Bank of Canada, with assets ex-
ceeding 500, 000, 900, becomes an in
Rtitution with assets of more than
$700 100000 and one of the worlds
greatest banks. The enlarged Bank
: Of Commerce will have II branches
in Canada and abroad and staff of
more than 5000. as the entire staff
of the Standard Bank will be taken
over by the Bank of Commerce.
Vice President Frank w. Stone of
the National Savings .and Trust Co..
Is taking a short vacation,
Vice President Joshua Evans. jr.,
OF the District National Bank is
away on short vacation
A very graceful act has been per-
formed by the Washington Chapter,
American Institute of Banking. in
making Major F. w. Patterson. for
merly financial editor of local
newspaper. an honorary member of
the chapter. Major Patterson has
covered" the financial run for a
number of years and won the high
esteem Of Washington bankers. He
gave particular attention to the local
Al. Is. chapter and in many ways
was able to farther the interests OF
the organization Of which he was a
gtAunch supporter The recent
action OF Washington Chapter In
making 1.-The Major" an honorary
member is a deserved compliment to
an accomplished newspaper man.
NEW YORK COTTON