Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-25


point last Deem
ber. Steel mill Catherine NJ. Krieg
activity declined,
but consumption of cotton by domestic
mills continued to increase, contrary to
the usual seasonal movement, while
there was a decrease in untitled orders
for cotton cloth. which was only partly
seasonal in nature.
Loans and investments of reporting
members banks in leading cities de-
clined by about $150,000,000 between
April l and the middle of May, re-
51ecting substantial liquidation in loans
on securities and in all other loans,
largely commercial. This liquidation of
loans was offset in part by further
large additions to the banks invest
nents, which on May 10 were over
B 81 600, 100000 larger than at the be-
ginning of the year.
Currency Demand Increases.
Volume of reserve bank credit de-
Hined somewhat in the six weeks end
ing on May Is. Contrary to the usual
seasonal tendency, there was some
further increase in currency demand
for the period, rejecting chiefly bank
ing disturbances in the Middle West.
Gold imports continued in considerable
volume and supplied the member banks
tional demand for currency, and also
to reduce somewhat the amount of
Eeserve bank credit outstanding.
Money rates declined to new low
levels during May. Rates on bankers
Rcceptances, which had declined from
] u per cent in the middle of April to
IL per cent by the end of the month,
were reduced e per cent by the 10Th
OF May. Rates on commercial paper
declined from a range of "a -2ls to a
range of 2-2A per cent.
Value Of building contracts awarded,
which fluctuates widely from month to
month, declined considerably in April,
according to the F. w. Dodge Corpora
ton, and decreases were reported in all
the leading classes of construction. In
the first four months of the year total
awards decreased IS per cent from the
corresponding period of 1880, rejecting
declines of 10 per cent for residential
building, II per cent for public works
and utilities, 25 per cent for educa-
tional buildings, 43 per cent for facto-
y1es and 81 per cent for commercial
Buildings, todays report says.
Miss Kreig's Fourth Triumph.
Miss Catherine M. Krieg of the Riggs
National Bank. who has just won Sec
0nd place in the American Institute Of
Bankingis annual essay contest, has
carried of these honors four times.
This gives her an all-time record in
Washington Chapter for writing win
ming essays, this success requiring an
unusually intimate knowledge of the
kechnical management OF banks.
Last year her paper won third place
% the contest. In 1873 Miss Krieg
carried OF first honors, and in 1928 she
won second place with an essay on 1.-The
Establishment of a Credit Bureau" The
District Bankers Association estab-
Iished such a bureau that same year
and it has been in successful operation
over since.
Miss Krieg has natural bent for
essay writing. This years subject was
the Function of a Modern Bank and
The Service 1t Should Render" It is
interesting to note that two OF the
khree places in the contest were taken
by women. All essays win be read be-
fore the District Bankers Association
IT Hot Springs in June.
Rising Bond Market Seen.
One of the brightest spots in the
financial situation, says the United
Business Service of Boston, Is the way
In which the bond market has re-
kponded to the recent rediscount rate
cut by the Federal Reserve Bank Of
Blew York
THE new rate Of ~ per cent gives
|6ficial recognition to the fact that
money rates are likely TO be very low
for an extended period. The object,
apparently. is to make the return on
short term paper so completely unat-
kractive that money Will be forced into
aong-term investments, chiefly bonds.
There seems little probability that
bond prices will recede: whereas it is
most probable that they will advance
apd SfYhSfQ Uftai1Y -
Traction Is Market Feature.
Small lot trading in Capital Traction
stock featured business on the Wash
angton Stock Exchange today as the
weeks business opened.
The stock again sold at its new price
Of SO and there were IA different sales
being 135 shares.
Mergenthaler Linotype recorded three
email sales. opening at 70 and closing
at 1917 the stock having changed very
little since the recent declaration Of
the regular quarterly dividend.
The only other stock appearing on
the board today was Federal-American
Co. preferred, which changed hands a.
s5. In the bond division Washington
Railway 81 Electric As registered 90l2.
The Potomac Electric Power and
Washington Railway 81 Electric stocks,
Ps well as Lanston Monotype, are stil
being quoted ex dividend.
Broker Must Answer Questions.
James M. Hoyt, partner Of Prince e.
Whitley, has been ordered by Justice
Phoenix Ingrahan. in New York. TO
kUbmit TO examination under the Mar
tin act by Attorney General Bennett,
Enyt, against whom an action for an
Injunction instituted by the New York
attorney general is now pending. re-
fused 70 answer subpoena requiring
him 70 appear for examination on the
ground that his constitutional rights
would be invaded. In a hearing on q
petition 10 yacate the subpoena. Justice
s1ngraham refused 10 sustain his conten-
ton. Hoyt's attorneys have signifled
their intention TO carry the case 10 the
Appellate Division.
At the time of the brokerage firms
failure, the concern maintained an Office
ia the Washington Building here. Lo-
cal clients are following the legal pto-
seedlings with great interest.
Financial District Comment.
The Atlanta and Minneapolis Reserve
Banks are the only ones in thu reserve
eystem which have not recently cut
their rediscount rates, The last action
OF this kind was taken at San Fran
disco.
At the low point in 1921 bank stocks
rendered an average yield OF 6.24 per
cent. Last week the average return was
% per cent. Many bankers argue
from this that bank stock prices In the
present market have practically reach
ed bottom.
r. A. Van Orsdel, general counsel for
the Chesapeake 81 Potomac Telephone
Co. has notified the Public Utilities
Commission the company would file a
petition in the near future seeking per-
rlission to reissue the So 100000 in stock
which was Withdrawn after its issue