The Washington times., 1928-02-25
BANKS WAR OIL
IMITATION
By RICHARD HATTON

4O1S8AAAANA(
There is apparent throughout the
country q very marked tendency
to reduce whatever initiation there
may have been in the general
banking situation, according to local
financiers. These observers point
to the fact that there is an APP
preciable movement on the part
of certain member banks Of the
Federal Reserve to reduce their
holdings. Total loans and invest.
ments also have fallen off.
Viewing this situation and find.
Ing that the credit situation also
10 slowly clearing, Henry Clews
and Company, Of New York, state
that action at the Federal Reserve
Bank of st. Louis in raising its
rate to 4 per cent leaves Cleveland
as the only Reserve bank in the
system with a 81 per cent rate.
and this latter figure undoubtedly
will be changed shortly. The ques-
.tion whether interior Reserve banks
may not now initiate an advance
to AZ per cent is still under
consideration with such a change
possible unless there should be q
rapid reduction of brokers' loans.
"A falling off IN considerable amount
viii naturally follow II IiQuida.
ton continues.
Ups and Downs
Commenting upon the ups and
downs Of earnings. the Clews view
of the financial situation is that
50 great deal Of attention has
naturally been given to the general
question Of corporate earnings since
the beginning Of the year. One Of
the dangerous factors in the out
look had been recognized as being
the lack OF correspondence between
business conditions and stock quota
tions. From now on, it is likely
that values win be much more
directly influenced by changes in
earning power. General Motors
remarkable earning had been pretty
fully discounted, but the excellent
showing made by Consolidated Gas,
with over $4,000 900, equal to 1913
Der common share, was some So.
500, 900 better than any other pre-
ceding year and exceeded expectar
tions. Preliminary earnings for
railroads have also been on the
whole favorable in the showing
they make for the first month OF
the year, the few lines which have
made returns indicating hopeful
condition. some being even better
ports are also being made by some
of the utility companies, most OF
which are making q satisfactory
showing. Adjustment of dividends,
however. to the more highly COM
petitive conditions in business Is
recognized as essential, and accord
ingly q number Of concerns have
cut their rate or failed to declare
extra distributions which had be.
come customary. Reductions OF
dividend have been especially note.
worthy ID the oil field and are
likely to grow more extensive.
somewhat the same situation Is
expected to prevail among the
motor companies, It should be
remembered, however, that these
changes reflect conditions which
developed during last year and are
not q necessary forecast OF the
Industrial situation during 1923"
Industrial Situation
Coming on the rail and industrial
situation. the United Business Ser
vice finds that the Southwestern
Rails hold a relatively favorable
position and says: Never in his
tory have the carriers been better
equipped than at present. and it IS
therefore l.kely that expenditures
for maintenance and equipment will.
in the aggregate, remain at rela-
lively low levels, permitting an in.
creasingly larger proportion Of in.
come to accrue to net.
I'm view of the fact, however,
that the first quarter last year
disclosed the largest net operating
- es&v1 fHeav fnps in
history, it Is very doubtful IL COM
parative results will show any gen.
eraI Improvement until the second
quarter. There viii be exceptions,
Of course, but outside the North
western grain carriers and some OF
the Southwestern roads which were
particularly hard hit by flood cen
ditions last year. there will be
few"
The following have been elected
officers OF the newly formed District
Auditors and Comptrollers: J. Damn
Faber, auditor American Security
and Trust Company, president; Ray.
mond @. Marx, auditor Riggs Ma.
tional Bank, vice president; r. En-
dtcott, Washington Loan and Trust.
Company. secretary and treasurer.
Charter members of the new organi-
zatton in addition to the above
named officers are Arthur J. Linn,
comptroller Federal-American Ma
fional Bank; William NJ. Harris,
auditor Lincoln National Bank. and
Audley A. ?. Savage, National Saw
tngs and Trust Company.
Going to New York
Among the Washington Chapter
representatives Of the annual
banquet of the New York Chapter,
American Institute of Banking,
which will be held in New York
tonight will be: /. j. Roberts, presi.
dent Washington Chapter; T. Hun
ton Leith, Security Savings and
Commercial Bank; James A. Soper,
Lincoln National Bank; George o.
Vass. vice president and cashier,
and Hilleary G.. Hoskinson, vice
president of the Riggs National
Bank; Miss Catherine Kreig, Riggs
NATIONAL; Mrs. Helena D. Reed,
Lincoln National Bank, and Miss
Mary Jane Winfree, secretary Con-
tinental Trust Co.
The sales of ordinary life in
surance for the first month of
1928 compare favorably with rec
ords Of last January. A total
volume of $609, 1885, 900 was sold in
the United States this month by
reporting United States and Cana
dian companies. This is gain
of / per cent over production Of
last January and is shared by most
kections of the country The gain