The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-02-20
CASH LACK IS
UNLIKELY
By RICHARD HATTON

A variety of opinion has been ex
pressed since the recent increases
in the rediscount rates by the New
York and other Federal Reserve
hanks. The effect that the action
will have on the commercial money
market has been especially prolific
OF discussion.
On this point the opinion OF
United Business Service is that al
though the increases may result In
u slight stiffening of bank loan
rates, 1t is improbable that any
business men or firms will be pre-
vented from, obtaining all the
money they need for regular OPP
erations at very reasonable rates.
Since the period between early
February and the middle of June is
seasonab1y one of monetary ease.
the rate can now be raised with
less constructing effect on credit
than would be the case after the
middle OF the year.
There is, however, some psyche
logical effect in a rate advance
that acts as a suggestion to the
banks that they adopt more con-
sentative attitude in credit extern
sions and renewals.
Selling Is Active.
In the present instance, the rate
advance is accompanied by an &C
tive selling movement or U. >. Sc
clarities by the Federal Reserve
hanl,s. These are mostly bought by
the member banks, which, in con-
senlience. have that much less
money to loan either on securities
or commercial paper. They Will,
however. favor commercial loans be-
cause they can be rediscounted.
That the industrial exposition to
be given March 1917 for the fourth
consecutive year by the Chamber or
Commerce is being accorded even q
better reception than previous exhl-
bitions was stated by M. A. Leese,
who is heading the general commit
tee and actively directing the snow
this year.
s'To date we have secured a
greater variety and number of dis
plays than we had obtained at the
same time last year." declared Mr..
Ieese. EThis we take as an indica-
ton that Washington business men
who participate look upon the ex-
position as an effective means OF
selling their firms to the COM
immunity.
Exposition Succeeding.
"Iast year several firms took the
exposition as an opportunity for
introducing a new product. but new
or old, everything which is dis
played Is assured Of receiving some
attention from crowd of at least
81, 900 persons. If every business
man could feel that within six days
that many persons would view his
product, he could well feel that he
was on the fair way to its success
auI reception by a sufficient number
of buyers.
1--WE are presenting the exposition
to prospective exhibitors solely on
its merits, and we believe that is
sufficient to make it an attractive
proposition. The response which
has grown from year to year is
enough proof that when we Of, the.
chamber say the exposition is sue
ceedIng we are not letting our en-
4husiagna run away with our judg-
snent OF the facts"
The outlook Of the general bond
market and the peculiar position Of
Joant Stock Land Bank bonds in the
investment market combine to make
them at this time a very attractive
security, according to c. F. Childs
b Co, specialists in United States
Government securities.
Investigations by the Federal
Farm Loan Board and the Treasury
Department have revealed that, ex-
cepting a few of the banks, the
Joint Stock Land Bank System is
in u sound position. Even in the
cases Of those banks which have
been placed in receivership or which
have been temporarily embarrassed
by the accumulation Of Delinquent
cios and consequent foreclosure,
the market quotations for their
bonds have declined to levels which
do not seem to be justified by the
condition of the issuing institu-
Hions."