Evening star., 1932-01-26

proposes to abolish
the Reserve cities Edmund Platt.
and the classifica-
tion of deposits as demand and ume
deposits, and to require every oahk 70 70
carry a per cent basic reserve on az
deposits and in addition. 81 per CenI
of average daily Withdrawals OF oeo:SS
during the eight weeks preceolIg |9
current reserve computation peIlou.
aCritice of the plan do not seem to
have noticed this eight-week average
and have made the objection that tenn
norarv periods of rapid turnover as JUST
after the panic in 1929. might call 1or
higher reserves when credit Shoulo De
made easier rather than the opposite
states Mr.. Platt ,,..
In general, the turnover OF CneCHS
would be greatest at periods OF eXpahu-
ing business and of considerable specu-
lstion. whether in stocks or IN Teal
estate, and the proposed new reserve
requirements would act somewhat as an
automatic check on such speculauon'
the banker asserts.
New Bank Rate in Effect.
The Federal Reserve Bank of Rich
n,ond has Jumped INTO the national
limelight by reducing the redlscounI
rate from 4 to 3l2 per cent, the new
rate being put into effect YESTERDAY.
The move is said to have been made IN
the Reserve Boards effort further to
ease the money situation. Inc per
cent rate had been in effect since last
October 20, when the rate was advanced
| per cent. At that time Richmond ana
Dallas had the highest rates IN the
United States.
The new rate is the same as that pre-
vailing in the New York district, al
though bankers today predicted fur-
ther lowering of the rate in the other
districts in Nationwide move 70 make
money cheaper for borrowers. The frst
move bv the Federal Reserve Board to
combat deflation was taken on January
10 when the Federal Reserve Bank OF
New York cut its bill-buying rate by a
of per cent, forcing down open mar
ket Yields on bankers acceptanceS.
The officers of the Richmond Reserve
Bank are: William w. Hoxton, chair
man; George J. Seay. governor; c. A.
Peple. deputy governor, and George h.
Keesee, cashier.
Morgan Elected to Air Boards.
Charles Carroll Morgan, co-manager
of the Washington Office OF G. M:-P.
Murphy & Co., members OF the new
York Stock Exchange, has been recently
elected to the boards OF the washington
AN SOI pOi dIiO4l am NAA~
washington Airport, Inc. The other
directors are:
Edward o. Mcdonnell, New York; c.
Y. Fauntleroy, Hugh Reid, Howard
Sutherland A P. Adams, New York,
and F. F. Russell, New York.
Mr.. Morgan is a member of the
board and Executive Committee Of the
Federal Storage Co. and Investors OF
Washington, Inc. He is also member
Of the board of the Washington Loan q
Trust Co. and the Board of Managers
of the Associated Charities. He is a
member of the Ticker Club and the
Bond Club of Washington, being past
president of the latter. Mr.. Morgan Is
also a member of the Metropolitan and
Chevy Chase Clubs and is on the Board
of Governors of the latter club.
Rail Credit Body Organizes.
The Railroad Credit Corporation has
completed its permanent organization,
as follows; President, E. @. Buckland,
chairman of the board, New York, New
Haven & Hartford; vice president and
controller, E. r. Woodson, Washing
ton; secretary, William J. Kane, Wash
irgton: assistant secretary, M. K. Du-
gan, New Haven, Conn; treasurer, Ar
thur b. Chaplin, Boston, and counsel,
Daniel willard, jr., Baltimore.
Mr.. Buckland has been chairman OF
the board of the New York, New Haven
& Hartford Railroad since 1929.
Mr.. Woodson has been secretary and
treasurer of the Railway Accounting
Oficers' Association since 1914 He is
president Of the KiwaniS Club in Wash
ington and chairman Of the Interna-
tional Committee on Vocational Guid
ance of that organization.
Mr.. Kane, formerly connected with
the car service division Of the American
Railway Association, is a practicing at
torney.
Dollars and Sense Appears.
The January number of Dollars and
Sense, published by Washington Chap
ter A. l. B., has just made its appear
ance in the financial district. 1t is an
unusually interesting number.
One Of the leading announcements
is that Henry J. Mergler, national pres
ident Of the American Institute Of
Banking, will be the honor guest at the
coming annual banquet of Washing
ton Chapter on February l3 at the
Willard He will also speak.
The publication contains a great deal
of information on chapter affairs and
contains tributes TO the late John B.
Larner and Edward J. McQuade
This years editor is Norman E.
Towsen Of the Washington Loan &
Trust Co.
Traction Issues MonopOlize Trading.
Capital Traction issues held the spot
light on the Washington Stock Ex-
change today, all trading being in these
issues. Capital Traction stock sold in
small lots at 49, Capital Traction SIS
figured in a sale of 81 900 at So and
another $1,000 flactionaly higher at
68l,.
The Washington Stock Exchange
Board Of Governors at a meeting today
voted TO remove the minimum price
rule on the miscellaneous stocks listed
on the local board The restrictions
will be removed tomorrow.
Financial District Notes.
T. Hunton Leith. assistant cashier
OF the Security Savings & Commercial
Bank, has returned from the mid-Win-
ter counsel meeting of the American
Institute of Banking, at Birmingham,
Ala.
Charles E. Rieman, president of
Western National Bank and head of
the Maryland division Of the National
Credit Corporation, has been elected
president Of the Baltimore Clearing
House, succeeding Waldo Newcomer
who has resigned.
All bills which may be introduced in
Congress to prohibit short-selling Of
stock will be opposed by the Merchants
Association of New York as result Of
action taken by the Committee on
Banking and Currency and the Board
OF Directors of that organization
U. S, TREASURY BALANCE.