The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-06-25
No STR|NGENCI
IN MONEY
SEEN
Rx RICHARD HATToN

1irKnneSS or money rates Will uSNSA
op into any really serious strin
Eency in the near future. states
the current issue of the Guaranty
Survey. published by the Guaranty
Trust Company of New York. "one
OF these Is the large amount o.
Federal Reserve credit still available,
and the other is the fact that,
while money rates in this country
have been rising. those abroad have
been declining. so that open mar.
ket rates in New York are actually
higher than similar rates in most
OF the leading financial centers Of
Europe, the Survey continues.
deposits OF the Federal Reserve
hanks could increase By more than
SIS 900 .O0O, 900. and deposits Of com.
nlercial banks IN general by many
times that amount. without ex.
hausting the reserve possibilities OF
the gold still held by the Reserve
banks. While it Is not likely that
any such expansion would be per-
mitted to occur under present con.
ditions, there is no economic neces.
sity for really tight money in this
country for some time TO come.
Nevertheless, It would not be
reasonable to expect an immediate
return of money rates to the low
levels that have obtained for the
last few years. The redistribution
OF the worlds gold il still under
way. and American banking au.
thoritiea have wisely resolved not
ia encourage any tendencies that
would make this redistribution un.
necessarily blIrdensOme. The de-
mand for American capital abroad
il still insisLent, and investors IN
this country show an Increasing
disposition to place their funds in
foreign securities on reasonable
terms. Hence. natural economic
forces and sound banking policy
combine to indicate the continuance
of money rates at a level which,
though not high enough to hamper
orderly business expansion, VIII
tend to prevent the development ot
dangerous infiationary tendencies.
No Undue Demand for Credit
cit may be noted that the fluctua-
lions in the security market have
not been the result OF altered bust
ness conditions and do not seem
likely to affect them greatly or for
a long period. There has been no
undue demand for credit in COM
modify or inventory initiation or for
business expansion. Conditions in
the money market artificially created
to serve special purposes will sooner
or later make their adjustments to
the normal laws OF supply and de-
n1and and general business viii pro-
coed in harmony Herewith.
Business movements are still
irregular, but, with allowances for
the usual seasonal tendencies. which
in a numher OF lines are downward
at this time OF year. it appears
that some Improvement has oc-
CURED in recent weeks. This con-
ciusion is supported by the trend
of railway freight loadings. Bank
debts to individual accounts out
side OF New York city continue
10 rim well above the figures a year
ago. Commodity prices in general
continue to follow an unusually
even course.
Reports relative 10 the rates OF
operation in the basic industries
show the same conflicting trends.
though in general the current
movement appears to be charac.
terized mainly by the downward
tendency that has almost invariably
appeared between spring and sum.
ner In recent years. The iron and
steel industry, after an exceptionally
wen sustained level of activity
through the spring, has expert.
enced the usual summer recession.
"A new high record was estab-
lished last month for building con-
tracts awarded east of the Rocky
Mountains. While the advance in
money rates will tend to restrict the
volume of building in coming
months. other factors will work in
the opposite direction. One of these
il the comparatively low level ct
building costs due to the decline in
prices OF materials. which has helped
to stimulate activity in recent
months. Another is the favorable
labor situation owing TO stationary
rates Of wages and unusual freedom
from serious disputes.
Back at Work
Most of the members of the
Washington delegation from Wash
ington chapter. American Institute
OF Banking who attended the an
nusl convention in Philadelphia
last week are back at their desks
in local banking institutions to-
day. The convention resulted in
three prominent members of the
local chapter being assigned to
important committees, although,
much to the disappointment of
the Washington delegation, t h e
fact that Baltimore is represented
on the executive. council and that
Washington is in the same dis
trict prevented the election of T.
Hunton Leith, of this city. to
the supreme governing board. WASH
ingtonians assigned to committees
are: I. J. Roberts. Riggs Ma.
tional Bank resolutions committee;
Miss Catherine krieg, of the same
institution, women's committee. and
Harold W. Burnside, Farmers and
Mechanics National Bank, com
fnittee OF public affairs. Frank
NJ. lotion, of the Chase National
Bank, New York city, was elected
president OF the national organi
zation.
Branch Office
The Washington branch office Of
Westheimer and Company, members
of the New York Stock Exchange
was opened on the ground floor
df the Woodward Building today
under the direction Of A. Harmel
Reside. The board room and
Ofticos are fitted with the --latest
mechanical appliances for transmit