Evening star., 1932-02-24

100000 subscribed
by the United @
states Treasury, nm ~ "a
the corporation G. b. Chipman.
may obtain other
funds up to $l,5OO.OO0,O 900, by the
issue of its own notes, debentures,
bonds. or other obligations, which gives
it potential resources Of $1,000
10000 The obligations OF the
corporation must mature within not
more than five years of date of issue
and will be fully and Internationally
guaranteed by the United States, both
as to principal and interest.
Liquidation of member bank credit,
which began late in 1929, continued
through January, the Federal Reserve
Toard reports in its bulletin. Reduc-
ton in member bank deposits resulted
IL further drawing from balances at
reserve banks. Hoarding of currency
fer the five weeks ended January 81
increased $3.50 600, 900. Bank failures
during the month were fewer than in
December by "a.
Volume of member bank credit in
leading cities decreased in January by
$3.50 600 600. This decline followed
reduction of loans and investments in
the last quarter of 1881 amounting TO
O0.O00.000 at member banks in lead
ing cities and to 81 $l,000000,000 at other
member banks.
Reduction of member bank credit
has been under way since late in 1929,
and for the two years ended with Sep
tember. 1881, total loans and invest
mentS showed a decrease of S2,800,-
100000. or at an average rate Of per
cent per year" states the bulletin. In
the last quarter of 1881, however, there
ak10,, ~,
amount to the full decline in the pre-
ceding two years and larger than the
postwar liquidation in loans and in
vestments, which took place between
November Is, 1920, and March 10,
1922"
The only class of member bank loans
to show an increase during the last
quarter of 1881 consisted of loans to
banks, which increased by 100000
and stood at $780, 100000 on De-
cember 81, the Bulletin states.
Chapman Sees Better Times.
George Bowie Chapman, resident
partner of Hartman g. Co.. members
of the New York Stock Exchange, has
returned from a trip to Florida and
expressed the opinion today that the
turning point in the depression has
really been reached and passed. While
in Florida he talked with many New
York financiers, who are wintering in
the South, and found them much more
optimistic than two months ago. While
they do not look for any rapid recov-
cry. yet they believe that at least d
part of the present advance in stocks
will be retained. If this proves true
it will be encouraging to business in
general they say.
The Liberty National Bank has added
a new Office in the northwest corner of
the lobby for William V. Simmons, the
new assistant trust officer who recently
assumed his new duties with the bank.
The construction work in connection
with the additional office was COM
pleted yesterday, calling into use lobby
space that was little needed by Gus
toners The office is across the lobby
from the Office of Vice President M. F.
Calnan and is the first change made
in the banking quarters since Rolfe E.
Polling was elected president. In addi-
ton to his work as assistant trust Off
Ger, Mr.. Simmons is handling income
tax returns for the banks patrons and
supplying all the necessary forms.
Million See Washington Poster.
During January the American
Bankers Association prepared for its
member banks special advertising
message in poster and blotter form,
to tie up with ths Washington Bicen-
tennial observance this year. The pur-
pose of the message is to help stabilize
public thinking and encourage the for
ward movement of banking and busi-
ness in general. Beneath a specially
drawn portrait Of Washington, the copy
reads as follows:
Does his spirit still live? Is his
faith? Is his will to make the best of
difficult situations our will? Is his
courage to overcome obstacles our cour-
age? On this 200th anniversary of his
birth let us take heart, face forward,
march on"
The large volume of requests coming
from member banks indicates that at
least a million people will see this
timely message urging renewed faith
and courage, says the Bankers Journal.
Trading was light on the Washington
Stock Exchange today. The market
opened with two 81 900 sales in Capital
Traction SIS at 60 Ten shares of Poto-
mac Electric Power 5l2 per cent pre-
ferred sold at 1882 and a small lot OF
Capital Traction appeared on the board
at 20, the same as yesterdays quota
ton.
Chester Gray, Washington represent
atlye of the American Farm Bureau
Federation, yesterday informed Henry
B. Steagall, chairman of the House
Banking and Currency Committee, that
the bureau indorses his bill making the
debentures CT the Federal intermediate
credit banks eligible for l5-day loans
by Federal Reserve banks to banks
which are members of the Federal Re-
serve System, and which also amends
the Federal intermediate credit act so
that the Federal intermediate credit
banks may accept notes and bills Of
exchange drawn By farmers cooper
ative marketing associations and handle
- them as accept2nces-
Financial District Notes.
Interstate Commerce Commission has
authorized Chicago g. Northwestern
Railway to issue s6,00o.00 of its S per
cent first and refunding mortgage bonds,
series E, to be pledged and repledged
from time to time as collateral security
for short-term notes.
H r. Bryarly, well known in local
insurance circles. who has been seri-
ously i'll at his home for more than a
month is reported as improving stead
lily and expecting TO be back at his
Office within two weeks.
Directors of the Financial Advertisers
Association announce that the annual
meeting will be held in Chicago this
year, about September 5. Baltimore
was one of the other cities that made
a bid for the convention. Several Wash
1ngton bank advertisers always attend
this meeting.
Formation of q national institute in
the perfume and cosmetic industry is
urged by the Committee on Research,
Department of American Manufactur-
ers of Toilet Articles in survey to de-
termine the more pressing technical
problems Of the industry. according to
Industrial and Engineering Chemistry
which has Washington headquarters.
Washington Chapter, American Insti-
tute of Banking, stands twenty fourth
in membership, eighteenth in individual