Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-03

securities, the Re-
serve system feels Tbomas r Prestor
concern about eX-
ceSsive growth in any line of credit. /
, is impossible for Reserve bank to ear
mark the credit it releases, but whel
too rapid growth in any line of credit
threatens to upset the financial struc
ture of the country and make undue
demands en- the reserve funds, which
should be conserved for the legitimate
growth of the countrys business. the
Reserve system can properly use it:
influence against these undesirable de.
velopments.
Within the limits of its powers, the
responsibility of the Federal Reserve
system is for the credit structure as {
whole. A healthy banking situation
must be forever the primary concern
| banks and of the Federal Reserve
Board. These responsibilities are suffi.
Gent to require our best efforts in the
determination of the wise course of &C.
ton. This is one of the seasons why
it would be unfortunate if the Fedora
Reserve system were to be charged
with still further responsibilities which
are not directly related to banking
such as responsibility for the stability
of the general price level or for tbs
moderation of ups and downs in bust.
ness conditions.
1T is my conviction. and I want tt
leave this thought with you in con.
clusion, that healthy banking situa.
ton is the best guarantee of healthy
economic development, in so far as il
depends on the use of bank credit.
In my opinion the country's entire
banking system. from the Smalles
country bank to the greatest financia
institution-and this includes the Fed.
eral Reserve system-can best discharge
its public responsibility by concentrat.
ing its efforts on the maintenance o.
sound banking conditions"
Preston Urges World Move.
An international association of bank.
ers which would bring the world E
better understanding of the problem.
which beset every country and woule
make for more cordial and sympa
| thetic understanding among nations
was advocated today by Thomas r
Preston. president of the American
Bankers Association.
Mr.. Preston, who is president of tn.
Hamilton National Bank. Chattanooga
Tenn, made the suggestion in an ad
dress yesterday:
Addressing the State bank division
OF the American Bankers Association
convention, M. Pin Beebe, president O
the Bank of Ipswich, S. Oak. state,
| that the different reserve requirement
| in individual States placed State bank
ing institutions in four-fifths of tn
! States on Instantaneous footing a
compared with national banks. an,
suggested that part of a banks re
serves be allowed to be held in the form
| OF United States and State obligation
| and possibly a small percentage il
high-class municipal obligations.
Park Savings Dividend Approved.
Sustaining a resolution adopted il
| August by the board of directors. stock
holders of the Park Savings Bank yes
| terday voted to increase the institution
| capital stock from $4,000 to $10O,0OI
| and declared 100 per cent stock divi
| dend.
The action, which virtually double
| the banks capitalization, was taken OF
| the boards specific recommendation
In letter to stockholders advisin
them of the proposed step, George E
! Walker, president of the bank, urge,
!
increase Of capital stock be beneficial
| to the institution in caring for increas
ing business, he said. but the stock
holders themselves through their CO
operation with the officers and boar,
of directors in making the bank sue
ceSsful' are entitled to the stock divi
dend.
Insurance Drive Launched.
With more than SAL 900 900 of bust
ness placed thus far this year. as com
pared with $39,000,000 in 1927, tn
Acacia Mutual Life Association ha
launched jubilee campaign to brin
its total business in force up to tn
$500, 00O, 900 mark.
William Montgomery, president G
Acacia. has left this city for bushes
trip which will take him to Texas .
P. Yort, secretary and actuary of AGA
cia, has just returned from a trip t
Chicago. where he attended the lif
Office management convention. TIL
American life convention, which open
shortly in st. Louis, will be attended b
Samuel j. Roberts, assistant secretary
and D. F. Roberts, assistant treasure
of Acacia.
Heard in Financial District.
The Union Trust Co. was being spe
cially decorated today in preparation 70
the open house" reception which take
place this evening, from to 10 O'CLOCK
for the general public, business me
and other bankers of the city.
Prices of commodities during the wee
ended September 90 declined one-tent
Of l per cent. according to the whole
sale price index of the National Fer
tilizer Association. Sharp declines oc
Cured in hogs, feed, grains and hide
but material advances occurred in tex
tiles especially cotton and cotto
yarns foods, metals and sodiur
nitrate.
The Federal American Co has jus
issued financial statement, as of SEP
TENDER 90, showing a new profit fC
the first nine months of the preSer
year of Sll0,48454. The company pal
the regular dividend of $3.50 on pre-
ferred and 80 cents on the comma
during the third quarter.
In Is of the past 25 years, railroa
common stocks reached their peak dun
ing November, December or January
and in only years in this quarter
century period was the annual SUNNI
attained in any of the other Calends
months. That is brought out in tt
current financial review issued by job
Nickerson & Co.. Inc.-not as propf
ecy as TO this seasons high for rail
but as a matter of record revealing TT
we'll defined path in previous years.
Oppenheim, Collins & Co. has dt
clared the regularly quarterly dividen
of ST per share on the capital stoc
payable November Is. to stock Of RET
ord October 26. Edmund c. Lynch
Merrill, Lynch e. Co. has been electe
a director of the company, to succee
Bernhard Benson, who has retired.