Evening star., 1930-06-22
REPORTS That Natural Gas
WI Be P'bed From West
Virginia Fields to THIS
Vicinity Are Rewued in
Financial District.
Call Money Is CHEAP and
Bankers Are Having Diff
fcu1ty IN Placing Com
nrrcia1 and Other Loans
at Profitable Rates of In
tereSt.

Washington Gas Light Co. to pipe
natural gas from West Virginia for dis
tribution to large and small consumers.
1t is also said that service pipes will be
connected with towns and cities ad-
jacent to this city.
One well known insurance man re-
peated the rumor, giving as the source
of information the owner of a large
farm within so miles of this city, who
mad been approached to grant right of
way across his farm for a pipe line for
natural gas, and who consented on the
promise of tap in"
Natural gas fields have continuously
maintained their flow since their dis
covery many years ago and specialists
in that line assert that there are no
signs of any decrease in the flow as
the years go by.
Natural gas gives greater heat than
coal gas and can be distributed much
cheaper.
Situation in Money Market.
Money is very easy Bankers are
getting whatever rates they can, facing
a decided hard PROTEIN, to pay per
cent on checking accounts per cent
on savings and 4 per cent on time
money-as most of them do-meet
operating expenses and dividends to
shareholders.
For the first time on record the dis
count rate of the Federal Reserve Bank
of New York has been cut to 21a
per cent.
While recognizing the prevailing
situation in the money market, it is be-
lieved that the low rate was made with
intent to aid in bringing a revival in
general business. Call money has been
plentiful on the stock market at 2E per
cent. although banks and corporations
outside of New York City sending funds
for placement on call are forced to pay
y per cent to the fiscal institution
making the loan.
The easy condition of funds Is largely
due to the slacknesS in general business
and industrial efforts and perhaps
persons are keeping their funds in bank
waiting for the time when they may
deem it wise to make investments.
In this connection 1t might be wise
to urge holders of securities not to pay
much attention to an urge that may be
made to induce them to shift--for
nothing but commissions.
A. B. A. President Not Afraid.
John c. Lonsdale, president of the
American Bankers Association, in an
address before the New York State
Bankers Association, made this declar-
alton: Il have no fear of the future
for the long pull of business and COM
merce.
America, as never before, is COM
posed of studious, fact-flnding individ-
uals, who believe in basing actions on
predetermined plans and not blind
theories. If our national issues, such
as the tariff. for instance, could be
removed from political control and
placed in the hands of impartial in
vestigators and advisers who have no
campaign pledges to keep, we would
eventually have a measure to which
we might refer with pride. A sense of
fairness should be dominant in the
foreign as we'll as domestic tariff"
No Bank Legislation.
The best information available is to
the effect that there will be no bank
legislation during the few days of the
present session of Congress and in all
probability none at the second regular
session of the present Congress.
Interest has now shifted to the pro-
posed hearings to be held on measures
before the Senate committee on finance
The one dominant witness before the
House committee, Henry NJ. Dawes, de-
clared that the unit banks could not
survive the competition of chain or
branch banking. Mr. Dawes was for
merly controller of the currency and
bitterly opposed the theories of the pro-
posed changes
Chairman McFadden of the House
committee on finance and banking in
troduced bill that would, If passed,
have effectually checked the trend to-
ward group banking. It forbade any
person or corporation from acquiring
more than 10 per cent of the capital
shares of any national or State bank,
member of the Federal Reserve system,
without the consent of the controller
of the currency or of the Federal Re-
serve Board. According to the author
of the proposed measure, its aim was
to give publicity to the operations of
ize group banking systems without the
financial backing needed for such
operations.
1t would not have offered inter-
ference with the strong banking systems
already in the field, as the controller
would readily approve of their efforts
at group banking. Strong banks would
therefore welcome its passage. More
over, 1t would give their efforts the pat
ent approval of the controller of the
currency-the open approval of the
United States Government.
Favor State Branches.
1t is said that Senator Glass, chair
man of the Senate committee on bank
ing and fnance, is preparing a bill for
Statewide branch banking, and the
Senate is said to favor such a measure.
1t is also believed that there will be
some action on group banking.
A. P. Giannini Of the Bank of Italy,
California, now a national institution.
admitted that If unlimited branch
banking was permitted, his bank
would Immediately establish branches
in all the leading commercial centers
of the country"
The Senate investigation of the Fed
eral Reserve Board, in the matter of
control of credits, and action in market
spasms, ETC., will not be on until Fall