The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-08-21
RESERVE B A N K
POLICY IS
SCORED
Nv RICHARD HATTON

Stating that BOND prices are
ut about the lowest level of the
present year and finding that the
Reserve policy has so far been
''abortive,' the mid-month review
of business OF the American Ex'
change Irving Trust Company
states:
Federal Reserve banks policy
OF exerting pressure on the large
volume of credit diverted into the
speculative security markets is now
showing an effect upon the call
and time money market ana on
rates for bank acceptances, in
addition to bond prices which are
at about the lowest level for this
year. Nevertheless, the chief OBJ.
iectiye of the Federal Reserve
banks has not yet been accom-
plished. With brokers loans ar
very high level, and with mem
her bank rediscounts disqIietingly
large, the approach of the crop
moving season opens up per-
spectiye of even tighter money
than now prevails. thereby i'm
posing d, real burden on agricul-
ture. and the distribution not only
of farm products but also Of
the hoped-for Increase in our do
nestle autumn trade.
wide attention has been called
to the fact that large sums OF
money used in stock and bond
speculations have come from the
Golfers OF corporations, which are
free OF control by the Federal
Reserve banks and whose LIQUID
funds, unlike those of national
and State banks, are not subject
10 any restrictions as to reserves.
since money is a highly mobile
commodity, it naturally flows TO
the market offering the highest
return. and consequently it is not
surprising that other loans have
increased more than 5000, 1000. 900
since the beginning of the year.
New regulations by the New York
Clearing House, imposing a some
what higher service charge upon
member banks handling this kind
OF business for customers will go
into effect September /. 1t seems
questionable at least whether the
new regulations will exert any
appreciable effect"
Slightly Advanced
A to bond prices, the review
says: Prices advanced slightly
early in July, as Is customary fol-
lowing a dividend and interest dis
httfrsement period, but steady de-
clines followed throughout the rest
of the month and in the early
part of August. Corporation bond
averages are now at the lowest
levels since the winter of 1925. New
bond offerings in the New York
market In July totaled $133,a63,5 500,
the smallest monthly aggregate in
mauy years, and less than 80 per
cent OF the total in June. During
the month. United States Govern
ment long term obligations sold
down to the lowest levels OF the
year"
President Victor B. Deyber Of the
Second National Bank is back at
his desk after an extended motor
trip through New England upon
which he covered nearly 1000
miles.
Eliot H. Thomson Of the Wash
ington Loan and Trust Company
has returned from q weekend trip
to Buena Vista.
Charles p. Light OF the local
office OF the National City Cum
pany left Washington yesterday Tor
a vacation trip to Canada.
Joseph Scf1iavone. former presi-
dent of the International Exchange
Bank, left the city yesterday for
Albany where he will be present
at the notification ceremonies of
Governor Smith. Schiavone goes
by special irritation with the dele.
cation from New Jersey. which is
headed by Senator Edwards.
Picking Location
President E. c. Stone of the Vet
cram Bankers Society has an.
noiInced tentative plans for the an.
nIIsl convention of the organization.
The committee. it is stated, is con.
sidering three possible locations
Alexandria, Georgetown ana Mt.
Rainier.
Vice President Francis G. Addison
ir. of the Security Savings and
Commercial Bank has returned from
q. short vacation spent in New
Jersey.
Augustus De Zavala has joined
the local staff of L. s. Carter and
Co.. investment bankers.
Col Robert N. Harper, presi
dent OF the District National Bank
plans to be on hand when Governor
Smith Ia officially informed of his
nomination.
Audley Savage auditor OF the Ma
tionsI Savings and Trust Company
is away on month vacs ton.
Vice President Thomas p. Hick
man OF the Franklin National Bank
is expected back tomorrow after q
vacation spent among the lakes Of
Maine.
Vice President A. M. Nevius, Of
the Riggs National Bank, is motor
ing 10 Denver.
HARTFORD, Conn. Aug. 21.-Tht
volume of ordinary life insuranc.
sold during the month of July
amounted TO 500, 939 900. New bust
ness Tor the year to date is 4 pei
cent better than during the cor
responding period last year. The ex
tent of the monthly increase is in
djcated by the fact that SIS per cen
OF all the reporting companies ex
perienced increased sales over las
July. Most sections share the coun
try's gain for the month of July.
Simmons Neutrality
FOreseen in Caroline