Evening star., 1929-12-20

eraI reserve district, k#
which includes Vir- ss
ginia, West Vir- '~ -------A a. ~ >----A2ssAA
ginia, North and John Poole.
South Carolina,
Maryland and the District of Columbia.
The work of the Federal Reserve
Council has been of special Importance
during the past year. The council has
been frequently consulted by Gov. Roy
A. Young and the other members of
the Federal Reserve Board, its recon-
mendationS being given most careful
attention.
The council holds four regular meet
ings each year and special sessions
whenever such meetings are desired by
the parent board. Recently many of
the councils views on business and
financial conditions were embodied in
the report on national conditions which
was submitted to President Hoover just
following the Wall Street crash. At
that time Gov. Young accompanied Sec
Tetary Mellon at one of the most i'm
oortant conferences held at the White
House Some of the Federal Reserve
Councils recommendations were also
presented at the later prosperity con-
ferences."
Probably the most important matter
considered by the advisory council dur
ing the year was the rediScount rate
in the various districts The wilder
speculation became, the more important
the rediscount rate was considered.
Rediscount Rate Maintained.
The board of directors of the Rich
r1ond Reserve Bank decided yesterday
that the present 5 per cent rediscount
rate in the Fifth Federal Reserve Bank
district will be maintained. They re-
ported much satisfaction over the con-
dition of the member banks in this
territory.
The directors voted a semi-annual
dividend of per cent to member banks
amounting to $4,000, payable January
/, among the $50 member banks in
Virginia, North Carolina, South Carolina,
West Virginia, Maryland and the Dis
trict of Columbia.
Despite the fact that Federal Reserve
Banks at New York, Boston, Chicago,
Atlanta and San Francisco have
lowered rediscount rates from to Az
per cent, fifth district directors said
business conditions here justified main
tenance of the customary rate.
They pointed out that within the
fifth district territory, recently, there
has been considerable liquidation of
loans due to marketing of cotton and
tobacco crops, and said banks in the
district generally are in strong
financial position.
More Local Dividends Voted.
At a meeting of the board of directors
of the American Security g. Trust Co.
the regular quarterly dividend of per
cent, with an extra dividend of 2 per
cent, on the stock of the company was
declared payable on January 10, 1880,
to the stockholders of record December
81, 1929.
President Frank j. Stryker of the
fho4 ha
ular quarterly dividend of SO per share
to stockholders of record December 81,
1929, and payable January 2, 1880, has
been declared.
At the regular meeting of the board
of directors of the Security Storage Co.,
held yesterday, the regular dividend of
SIPS per share was voted payable jan
uary TO- 1880, to the stockholders of
record January Z, 1880, both dates in
elusive. An extra dividend of $1.50 per
share was also voted payable December
30. 1929, to the stockholders of record
a the close of business, December 26,
botn dates inclusive.
AS reported in late editions of The
Star yesterday, the directors of the
Mount Vernon Savings Bank have de-
clared the regular quarterly dividend
of ~ per cent, payable December 81
to stockholders of record December 26.
They also voted a Christmas bonus of
5 per cent of annual salaries to all
officers and employees OF the bank.
Bank Merger Plans Abandoned.
In a joint statement issued today by
r. Golden Donaldson, president of the
Commercial National Bank, and Wade
H. Cooper, president of the Continental
Trust Co., 1t was announced that ne
gotiations tor a merger between these
two banks have been definitely dropped.
AS noted elsewhere in today's Star,
the boards of directors of the Com
mercial and Continental could not agree
on terms.
The merger was seriously considered,
and in the first stages of the confer
ences real progress was reported. 1t
looked as if there might be merger
at once.
AS the representatives of the two
banks plunged into arranging the de-
tails, many differences arose. The more
these details were considered the
farther apart the officials got 1t was
finally seen that a merger under the
proposed terms was impossible and the
heads of the two financial institutions
hastened to make an announcement
which would end all further speculation
in the financial district
Holiday Lull on Exchange.
Business was quiet on the Washing
ton Stock Exchange today. Capital
Traction in light sales opened at rs,
dropped to 7434 and closed at 747s
Riggs National changed hands at 525.
Federal American Co. preferred sold
at 100, Lanston at 110 and Mergen-
thaler at 1861 and 1862, eX dividend.
Bonds were slow.
Financial District Notes.
George L. Starkey, president of the
National Bank of Washington, is con-
fined TO his home with a severe cold.
Claude H. Woodward, president of the
Mount Vernon Savings Bank, has been
kept at his home for two weeks by ill
ness
Dollars and Sense" the publication
issued by Washington Chapter, Ameri-
can Institute of Banking will be ready
for distribution within a few days.
The Guaranty Trust Co. of New York
is another of New York's institutions
To increase its Christmas bonus to en-
ployes. The Guaranty will pay 10
per cent bonus this year, contraSted
with 8i2 per cent paid last year.