Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-14
Government PAYS
LITTLE FOR MONEY
Wide Difference Shown Be-
tween Treasury Bills and
Municipal Issues.

Ndo puICIlhSSQ db price eQulNAleIlb u
about 0.5l and 0.66 per cent on an
annual basis, while the City OF Detroit
has just marketed a $30,000000 bond
issue through q syndicate, headed by
Bankers Co. Of New York, which is
offering the bonds at prices to yield
from 4 to 434 per cent.
The Government gets more offers for
its bills at less than l per cent interest
than IL can accept. Although the offer
ing was about $50 100000 of the 9l-day
bills dated August II, 1881, and matur-
ing November 16, the total amount ap-
piled for was more than three times
that amount, or S2i1, 100000. The high
est bid made was 99.870, equivalent to
an interest rate of about O51 per cent
on en- annual basis. The lowest bid ac-
Cepted was 99.833. equivalent to an in
terest rate of about 066 per cent on an
annual basis Only part of the amount
bid for at the latter price was accepted.
The total amount of bids finally ac-
cepted was $50, 280, 600. The average
price Of Treasury bills to be issued is
99541 The average rate on bank dis
count basis is about 0.63 per cent.
The Detroit Az per cent bonds, due
1926 were issued for refunding and
S8,000,000 for emergency purposes, and
are tax free in the State of Michigan
and are legal investments for savings
banks and trust funds In New York,
Michigan and other States. The Detroit
issue is characterized as one of the
most important municipal loans of
1881. The syndicate bought $4,000
600 Of the Detroit obligations, as mixed
discount and premium 4las. The pur-
chasing group paid SCI, 153 900 for $22,-
100000, one to five-year refunding
bonds and $8,o08,s00 for $4,000, 900 one
to three-year emergency securities.
Other municipal bonds. showing pre-
vatling interest rates in this phase of
securities, include: $4,000 Sprinfield
Ohio, street improvement bonds at
per cent, and S425, 900 Indianapolis 3%
and 3l2 per cent both just put on the
market. North Dakota is putting out
$2,200,000 AZ and 45a per cent bonds.
to be used in extending to farmers loans
secured by mortgages to the Bank Of
North Dakota.
A. & p. TIA Co. Sales.
Although dollar sales of the Great
Atlantic g. Pacific Tea Co, which main
tains many stores in this city, showed
decrease Of IL Per cent for the five
weeks ended August /. tonnage sales
during the same period increased Ill
per cent over the like period of 1890.
Sales for the period this year amount
ed to S95,527, 987, compared with $685.
723,670. Tonnage sales for the flve
weeks this year totaled 5l3.o95 tons,
against 461 644 tons last year.
Average weekly sales in July were
$19. i05, 59T, compared with sig, 344, 734
in 1880, a decrease of S239,137. Aver
age weekly tonnage sales were 102,619,
compared with 92,329 in July, 1880, All
increase of 10000.
Drug Inc. holding company for the
Liggett Properties, today reported an
increase in earnings during the first
half of this year over the comparable
period of 1880. Net profit for the pc
Rod this year was s10,656,0s4, equal to
$3.04 share compared with s10,
542.0o7, or $3.01 share in the first
half Of last year.
Loft July Sales Gain.
Loft. Inc, which operates one of its
Happiness Candy Stores in this city
reports an increase IN sales for the
month Of July Of 706,019 customers
and $4,000 in sales, as compared to
July, 1880.
International Business Machines
Corporation, which has a plant in this
city, has further extended the cut
posts Of its foreign business by entry
into the Island of New Guinea, north
Of Australia. The company now does
business in 10 foreign countries and
a number Of dependencies. Its domes-
tic plants are in Endicott, N. Y, near
Binghampton; Washington, D, c., and
Dayton, Ohio. Foreign plants are in
Canada, Germany, France and Eng
land, with branches throughout the
United States and Canada.
Peoples Drug Stores preferred, fol-
lowing recent favorable reports Of sales,
gained points and fraction on three
blocks Of stock on the Washington
Stock Exchange today, selling at 103 10
1895, as compared to prior sale of I0l.
Mefgenthaler was shade up, at n.
American Security & Trust turned over
again at the recently increased figure of
3l9, and Federal-American National
Bank & Tust Co. was a fraction OFF at
80. Washington Gas SIS were out at
1O75R, gain OF point over prior sale.
Earnshaw Promoted.
Robert j. Earnshaw, assistant treas
trer Of the washington Savings Bank,
yesterday was elected vice president.
treasurer and director, il was an
nounced by the president, Thomas E.
FARRELL. The resignation of John d
Leonard as vice president and treasurer
was accepted, and Robert B. Montgorn-
cry, manager fthe mortgage loan de-
partment Of Acacia Mutual Life Asso-
eistion, was elected TO the banks board
Of directors. Mr. Leonard resigned his
post because Of III health and at the
ADVICE OF physician He plans TO
take years rest from banking &C
tvities and will remain at his Summer
home in Frederick. Nd
Mr.. EarnShaw entered the employ Of
the Central National Bank, which was
later consolidated with the National
Bank Of Washington. He was success
stvely employed by the Washington
Loan e. Trust Co. and Commercial Ma
tional Bank and washington Savings
Bank.
Mr.. Montgomery, the other new d.
rector, is the son Of William Mont
gomery, president Of the Acacia Mutual
Life Association.
Washington clearing house figures to-
day, S3,645, 93l 40.
Small Lean Needs.
Annually II requires in excess Of SILL
600 ,0Oo 600 70 take care of small bor-
rowers in the United States, says the
Journal Of the American Bankers As
ISOLATION.
This total A" it explains, includes So
500 100000 tnStaliment sales, which
have been defined as an indirect form
Of personal credit, 81. 500 600 900 in
open-hook accounts, S2.400 900 900 IN
life insurance loans TO policyholders
and United states veteran loans and
$f,150,o00,000 made by commercial
banks 1t also includes S2.695, 500 600
in advances made by pawnbrokers. per-
sonal finance companies, industrial
banks, savings and loan associations.
unlicensed lenders and other smaller
agencies"
From these figures il Is pointed out.
commercial banks are the fourth largest
makers Of small loans. usually for ac-
commodation OF certain customers and
not because the bank wished 10 cater
to this type Of borrower"
Bankers who analysed the cost OF
small loans found that many institu-
lions Ia handling so. 80 and 90 day