Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-12-05

been even under suspicion. and 1t would
be unfortunate to do anything that
might affect the high regard in which
it is held A law-making hysteria is
always a dangerous thing and it seems
to me that it would be extremely un-
fortunate to attempt to amend the Fed
eral Reserve act as to the eligibility of
paper for redisCuunt purposes at this
particular time 1t certainly cannot
have too much liquidity, and even If
more feyibility is desirable, the reasons
should be carefully studied so that such
changes ought to be made will be con-
sidered during a period Of normal con-
oitiOnS.
THE Federal Reserve act is a con-
tinuing law, and changes in its pro-
visions should be approached cautiously.
Emergency conditions can be met by
emergency organizations, which during
the emergency can supplement the
existing facilities without the danger of
weakening them. If at any time ex-
periments outside of the system are
found to be successful, then later, when
calm, constructive judgment is possible.
the desirability of putting them into the
Federal Reserve act might be con-
sldered," the banker concludes.
Mr.. Lonsdales views are very highly
considered by Washington bankers,
many Of whom know him personally.
Local bankers have recently been dis
Cussing the Federal Reserve act very
freely and predict it will be one of the
most important issues before the ap-
preaching session Of Congress.
Savings Reveal 80 Per Cent Gain.
It is highly fitting in this year of de-
preston to turn to a similar one, the
year closing June 80 1921, Just 10 years
ago, says the American Bankers Jour
nal. As compared with that year. the
New England area now has gained "a
per cent per inhabitant in saving de-
poSitS every State showing a gain. In
the Middle Atlantic States the increase
is more notable, indicating a gain in
excess of 80 per cent per inhabitant. in
which every State participates. In the
Southern States, although not all the
States in the area have an advance per
inhabitant over 1921, yet the savings
per individual for the group has in
creased by over l6 per cent. The East
Central States 60 forward, as do the
Pacific States. In only the West Cen
trail States is loss registered.
New Speculation Mania Seen.
That the world is now engaged in
speculation as unreasonable and as I'M
AIcs2OA4AlAB dN Oul AlAB IllG JUL llldlACl
Of 1929 is the implication CT an item
on boarding in the current bulletin Of
the Alexander Hamilton Institute. Gold
and currency. however, instead Of COM
modlties and shares in corporations,
are the favcrites Of the present mania.
Pointing out that bank deposits have
decreased about per cent since Sum-
mer against a normal seasonal tend
ency to increase, and that Federal Re
serve notes have been increased to the
astonishing percentage of 80, against
a normal of about 3, the institute ques-
ti-ns whether the full significance Of
boarding has been popularity realized.
In 1929, when money was 50 scarce
that people were paying s, 9, even IA,
per cent for day-today loans, they
were competing madly to exchange it
for commodities and shares Today,
when currency is abundant the pub
lie is eagerly competing for 1t. This
is speculation in money, the bulletin
says.
Treasury to Redeem Notes.
1t is announced that the United
States Treasury will redeem all out
standing 3l2 per cent Treasury notes,
series c, 1880 to 1882, on December Is.
This is a veEy important notice as in
tereSt will cesse on these notes on that
date. Holders some times overlook re-
demption notices and six months later
find they have lost half years in
terest II should be remembered that
the redemption date on this series is
only 10 days distant
Two Bankers Congratulated.
Two local bankers were receiving
special congratulations today on the
occasion of their birthday anniversaries.
Wade H Cooper, president of the
Commercial National Bank and Of the
United States Savings Bank, was one
OF the financiers.
Lanier P. McLachlen, president OF the
McLachlen Banking Corporation, and
head of the District Bankers AsSoci-
alton last year, was the other banker
remembered by his associates.
McCrory Reports Sales.
The McCrory Stores Corporation to-
day reported November sales totaling
S3,469,424 against S3,617l62 in No
vember, 1880, a decrease Of Al per cent.
For the II months sales totaled S36,-
4l3495, compared with S36440678 a
year ago, a decrease Of just OIL per cent.