Evening star., 1932-02-27
BABY BOND SALES
TO Be EXPEDITED
D. C. Banks viii Aid in
Disposal of New
Issues.
BY EDWARD C. STONE.

-OHCA ave al SAAC ocAAC VA OoOJ WINS
which the Treasury is to issue in ar
effort to bring boarded funds into cir
culation which are now held in safe
deposit vaults, stockings, under mat
tresses and IN tin cans hidden in atticS
Handling of these bonds by the local
banks will bring back the days of the
far famed Liberty Loan drives during
the World War, although no such
strenuous efforts will be made to sell
them. Bankers will merely obtain as
many as any customer wants without
exerting any pressure.
1t was at first feared that bank
patrons might buy the new bonds in
$50, S100 or $500 denominations with
money which they already have on de-
posit in the banks. Such, however,
will not be the case as the interest on
the new bonds will be but 2 per cent,
while the banks pay per cent on saw
ings accounts. The return would make
such a move too unbusinesslike.
1t is expected here that most of the
bonds will be bought by people in States
where many bank failures have taken
place. In some sections of the country
there has been SO much nervousness
over banking conditions that much
money has been hidden away and Is
not drawing cents interest. The 2
per cent, with Government safety, is
almost certain to bring a great deal
of this money back into circulation.
Latest estimates place the sum at
$1,500,000 900 which will be put back
into circulation by the sale of these
bonds. The Federal Reserve Boards
circulation figures indicate that $780,
100000 has already been returned to
active service, even before the first
of the baby bonds have been issued
The new bond issue will be redeemable
on go days notice, and mature in one
year. BY the end of IL months, bankers
believe, boarding will be a matter of
history.
So far as Washington is concerned,
boarding has been a factor of rather
minor Importance There has not
been q bank failure here for many
years. Confidence, for that reason, has
been at a much higher mark than in
many other parts of the United States.
Yet it is generally known that some
people in the city have had money in
hiding for long time. In order to
help these timid folks get their money
back into the earning column, local
bankers will render every assistance.
More Pennsy Stockholders.
For the third consecutive month, the
number of Pennsylvania Railroad
stockholders on February /, totaling
247,341. reached another new high
record.
The total number of stockholders on
February l represents an increase Of
1882 over the previous month and of
$3.50 over December, 1881, each Of
which formerly was new high peak.
~l~I-- =
increased $40 during January, reaching
107, asa on February l, the highest fig
ure on record Their average holding
is 40 shares and they constitute more
than 43 per cent Of the total number
Of stockholders.
Consumer Credit Held Vital.
"Credit for consumption is the
country's greatest need in the present
business situation" c. C.. Hanch of
Chicago, general manager of the Ma
tional Association of Finance Compa-
MES. asserts.
There has been too much credit for
production" said Mr.. Hanch. People
who have no money cannot consume
and people who have money are afraid
to spend it for anything except bare
necessities of life. Hoarding of money
is logical sequence. Release of
boarded money Is step in the right
direction, but to be NOSE effective, in
ducementS should be given to spend
some of the boarded money rather than
merely to remove it from one place to
another. Reduction in cost of con-
suner credit would be a real induce
ment to spend normally.
The country is now like an auto
mobile with dead engine and tank
full of gas. 1t needs a. Self-starter in
the shape of cheaper and freer credit
for consumption purposes"
B. & o. Income Shows Gain.
The Baltimore g. Ohio Railroad re-
port for January, made public today,
revealed gain in net railway operating
income. Total net earnings for Janu-
ary amounted to 81 ,354,916, against ST.
$685. in the like month a year ago,
an increase of $26, 1853. Railway operat-
ing revenues totaled $11, ,439 ,237, against
5,391 ,295 in January, 1881, a falling
off of 1882 ,058. Railway operating ex-
penseS were reduced substantially, being
S9,029,515, compared with $l2,921,7 ,779 a
year ago, reduction of $3,829 ,264. The
effect of the recent cut in wages will
net be reflected until the report for
February is ready. However, the gain
in net in January, even though small, is
neId encouraging.
Pennsy Reports January Net.
The Pennsylvania Railroad also re-
ported earnings for January today, net
operating income being S2,672O15, a
decrease of S708, ,742, compared with
January, 1881. The road reported a
falling of in freight and passenger
revenues of nearly s9O00,O00 during the
month. At the same time, the officials
made marked reductions in operating
expenses, railway operating costs total
ing $24,230,825, reduction over the
same month last year of S8,135 1854.
Gross revenues for the month were
S29, ,644 ,953, against $38 sos, GIL in jan
uary, 1881, and SAB 8,978, ,331 in the same
month in 1880.
West Virginia Directors.
The annual meeting of the Chesa-
peake & Potomac Telephone Co. of
West Virginia was held in Charleston.
The following directors were reelected: !:
T. S. Clark and Charles A Cabell,
Charleston; Charles M. Cohen, Hunt
ington; John M. Crawford, Parkers-
burg; David A. Burt, Wheeling; John
Raine. Rainelle; Lloyd B. Wilson, Mar
shall D. Sedan, Philip o. Coffin, Wash
ington, and Walter S. Clifford and Eu-
gene S. Wilson, New York.
Virginia Phone Directors.
At the annual meeting of the Chesa-
peake g. Potomac Telephone Co. of
Virginia, held in Richmond, these di-
rectors were reelected: John S. Eggles-
ton, William T. Reed, Richmond;
Goldsborough Serpell, Norfolk; Homer
L. Ferguson, Newport News; Junius P.
Fishburn, Roanoke; Lloyd B. Wilson,
Walter B. Clarkson, Marshal D. Sedan,
Philip o. Coffin, Washington, and Wal
ter S. Clifford and Eugene S. Wilson,
New York.