Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-20
RICHMOND RESERVE
BANK RAISES RATE
RedisCount Charge Now 4
Per Cent-D. C. Bankers
Hold Fall Meeting.
BY EDWARD C. STONE.

Bank OF Richmond has raised the re-
discount rate from 3 to per cent. Ell
fective today. This action by the Rich
mond bank gives the Fifth FEDERAL Re-
serve District the highest rediscount
rate now prevailing in any OF the II
Reserve districts.
Advancing the rate by the Richmond
Reserve bank means more to large In
dustrial city like Baltimore than 1t does
to a non industrial city like Washington.
Raising Of the rate, however, indicates
that there is an increase in the demand
for money in this territory. Improve
ment in the demand for money always
indicates that there already Is, or soon
will be, an upturn In business condl-
tions.
The Richmond banks action follows
that taken by the New York Reserve
Bank about 10 days ago George j.
Seay is governor of the Richmond Re-
serve Bank and William W. Hoxton,
chairman of the board.
Bankers Hold Business Session.
Members of the District Bankers AS
ISOLATION held their regular Fall bust
ness meeting late yesterday afternoon
at headquarters 1t was the first bust
ness session since the June convention
at Hot Springs, Va.
Resolutions were passed on the death
of Andrew Parker, senior vice presi-
dent of the Washington Loan g. Trust
Co.. who was a prominent figure in the
local financial district for many years.
The association was notified Of the
coming expiration of the term of Edwin
G. Graham as class B director in the
Federal Reserve Bank of Richmond.
He was given unanimous Endorsement
to succeed himself because Of the able
manner in which he has already served
the board.
While no official discussion took place
concerning the S500.000,000 National
Credit Corporation plan TO assist the
banking situation, mention of the big
national movement aroused enthusiasm
among the members.
More Banks Vote Subscriptions.
William D. Hoover, president of the
National Savings g. Trust Co., en-
nounced today that the directors of his
bank have unanimously voted to sub
scribe the full quota TO the fund now
being raised by the National Credit
Association. The action was taken at
the regular monthly meeting yesterday.
President Lanier P. McLachlen OF the
McLachlen Banking Corporation also
reports that his institution has voted
full support to the movement. The ac-
ton taken by these two banks brings
the total number OF Washington banks
already subscribing to the fund to nine.
The directors of the American Secur-
ity g. Trust Co. were to hold their reg
ular monthly meeting this afternoon,
their cordial backing of the plan being
expected Other local banks are plan
ming to take up the matter before the
special joint meeting of the Washington
Clearing House Association and the
District Bankers Association, called for
next Friday afternoon.
C. e. o. Reports Earnings.
The report of Chesapeake g. Ohio
Railway Co for nine months ended
September 80, 1881, shows net income
OF $2l, 1922 ,043 after taxes, charges and
sinking fund appropriations. equivalent
after allowing for nine months dividend
requirements on 6l2 per cent preferred
stock to $276 share (per $3.50 on
1851 shares of common stock. This
compares with S25,074,l80, or 1927 a
share. on 7654668 common shares in
first nine months of 1880.
Gross revenues for September were
S1l ,049 095, decrease of 81 ,092, 939 I'M
der September of last year. operating
expenses were 1921 Att decrease of
$791.6l6 as compared with September
of last year; net railway operating in
come was $4047080, decrease of S229,-
688 under September Of last year The
net income after all charges. including
sinking fund appropriation for the
month of September, was $3,3l6 1913,
decrease of $462, SIT under September of
last year. The operating ratio is 56.4
per cent, compared with 57.8 per cent
for September of last year, or de-
crease OF IA per cent.
Trading Active on Exchange.
Trading covered wide range of is
sues on the Washington Stock Exchange
today. The market opened with Po-
tomac Electric Power 6 per cent pre-
ferred selling at 11o1&. Five shares OF
Union Trust Co. stock then changed
hands at 1877.
Both type stocks were out. 10 shares
of Lanston Montoype selling at 1872,
while Mergenthaler Linotype closed at
S. Woodward g. Lothrop common,
which has appeared daily in recent Ses-
sions. sold again today at 80 on turn
over Of 90 shares.
In the bond division, Washington
Railway & Electric As came out at 85a4
two ST 900 sales in Potomac Electric
Power IS were recorded at 1862 and
small sale in Washington Gas IS, series
A, took place at 100$i.
Saunders Again in Business.
Clarence Saunders. who at one time
in Washington, has started out in
Memphis, Term. for third time to
make his fortune, opening modern
grocery store in the downtown section
with so employees.
Wholesale Price Index Higher.
The weekly wholesale price index of
the National Fertilizer Association,
based on ats price quotations COM
puted weekly, showed another small
gain for the second consecutive week.
The computation for the week ended
october II showed gain OF frac-
tional points over last week and
fractional points more than two weeks
ago. The latest index number is 66.7.
A week ago 1t was 664: month ago
it was 67.6, and year ago it was 83.1.
The Treasury Department on October
rs will retire $51 100000 Of Treasury
bills which carry an interest rate on a
discount rate of 456. the lowest rate
in history of this type of security The
Treasury is Offering $4,000 900 9l-day
bills with which to meet The matur-
ing bills.
Edward j. McQuade. president of the
Liberty National Bank, Is attending the
monthly meeting of the Mergenthaler
Linotype Co. in New York today.
Local brokers have received a large
number of copies of the speech by
President Richard Whitney of the New
York Stock Exchange, in which he put
up d Vigorous defense of short selling.
Brokers here are in accord with what
he said Bankers and some Congress-
men are equally opposed to short selling
Washington Clearing House figures
for today, $3,s6s,7