Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-05
Results of Last Call Shows
Opposite Trends Since De-
cember Reports.
HUGE MARCH FL0TATIONS
IN STATE AND CITY BONDS
Washington Stock Market Week
End Trading-0ther Notes in
Financial District.
BY EDWARD C. STONE.

washington banks MADE Dett-r
showing than banks in New York on
the last call, March IS. The banks
here revealed a sharp upward trend in
deposits, while Gotham institutions re-
ported a downward trend. Deposits in
many New York institutions in both
the city and state were below the flg-
ures of Dec. 81.
Smaller deposits in New York do not
mean that the available money supply
has shrunk' On the contrary, money
has been piling up in the banks, which
find it difficult to employ their idle
funds. That is indicated by the abnor-
mally low rates for money now prevail
ing. The deposit figures have shrunk
because concerns are using smaller
amounts in their business and are bor-
rowing less. The banks commercial
leans are down, and hence, their de-
posts are smaller.
First reports on New York bank de-
posts are rather striking, although the
trend is often downward at this time
of year, compared with the year lend
figures. The drop this, year is more
pronounced than usual, because of the
business depression. The smaller cities
in New York State are building up de-
posits prior to Spring and Summer
needs for agriculture. so that their re-
ports are generally more favorable. But
SO far, they show no such advances as
the banks have made in Washington.
Record Bond FIotatiOns.
Due to the fiotation, OF New York
City's 100000, 900 loan and $4,000, 900
Port Of New York Authority Holland
Tunnel and Inland Terminal bonds. an
unusually large total of State and mu-
nicipal financing is reported for the
month of March. AS estimated by the
Daily Bond Buyer. flotations during the
past month aggregated $275, 087, 936.
This large figure is In sharp contrast
with the two preceding months, when
new issues amounted to sis, 58S,0 900 Tin
february and 49,977.000 Tin Janu-
ary).
Only twice before in the history of
domestic municipal finance has the
March, 1881, total been exceeded In
December 1929. and in June, 1924,
new loansasa aggregated slightly in ex.
cess Of sz85. 600 600
Some Washington bankers express
the belief that new bond issues are
being brought out a bit too fast I'm
digested bonds we're given as one of
the reasons which helped to bring
about the Wall street break late in
1929. However, these same bankers
add that the recent big issues appear
to have been well absorbed so that no
serious congestion is yet in sight.
Bank Stocks on in March.
The trend of prices in New York
City bank stocks which are so widely
held in Washington and in the lead
ing insurance stocks traded in over
tne-counter was downward during the
month of March, according to records
compiled by Holt, Rose & Troster.
The average for 16 leading stocks
which reached a high of ITO for the
month on March 5 dropped to l02 on
March 80, and closed the month at
lo3. The sharpest declines we're re-
corded in New York Trust which drop
Exchange of IL points, Bank of
America, 1872 points and Guaranty, SO
points. Central Hanover closed at 268,
the high point for the month.
The insurance stock average was at
10 on March 2. from which level it
dropped to a low of IS on March 80,
which was also the closing level for
the month.
Saturday Exchange Trading.
Following Fridays holiday on the
Washington Stock Exchange trading
was quiet yesterday. The sales:
Capital Traction $500 at 70.
Washington Railway g. Electric As
$1,000 at 39lz.
Potomac Electric 5lzss preferred-5
at lloL.
The Carpet Comparatively at 227s
Is at %. Is at %.
Washington Gas 5s-si 900 at 1855
$1,000 at 1861.
Washington Railway e. Electric pre-
ferTed-l at cas-
Washington Gas IS IS $500 al
l03a..
Potomac Electric SID preferred-s
at ITO.
The exchange will hold a special elec-
ton tomorrow noon to fill the vacancy
caused by the sudden death of the presi-
dent George D. Watson. who was serv-
ing his third term in this once.
Financial District Comment.
The Treasury reports that first quar-.
ter reflnancing was accomplished with.
out causing any stir in the money mar.
kets. 1t included a turnover of more
than $4,000. 900 900 due TO the retire.
ment Of l.109 ,000, 900 of notes, issuanc,
of 1894 600 900 in new bonds and 1924,
600 900 in certificates, as we'll as tn
payment of about $4,000, 900 in interes
and collection OF $3.50, 200 900 in income
taxes
Chinas purchasing power has beer
decreased only rs per cent by the fal
IN silver prices. says G. M. p. Murph
& Co. in the current fortnightly review
entitled. Some Comments on Silye
Prices" An increase in silver prices
the review states, might cause Chini
more hardship than has resulted from
the drastic decline. The drop in silve
prices mas NOT Usen among Lne inpor
tans causes Of world depression, tn
= .-okerage firm believes.
Local hotel men are jubilant over tn,
importing of visitors TO Washington 70
the Easter recess. They believe all for
mer records are going to be smashed II
the number OF Spring sightseers. Tn
increased business was never more vel
come.
The latest statement of the Fedora
Reserve Board shows member ban
borrowing throughout the system Oh
April 2 was Sl63 $4,000, lowest sine
last September, and with that one ex
ception lowest since the war