Evening star., 1934-08-29
REVIVAL OF SILVER
DEALINGS TALKED
New York Market Likely to
Reopen, Capital Finan-
CierS Hear.
BY EDWARD C. STONE.

Reports current In washington
financial district today indicated that
the New York silver market will be
reopened IN the near future 1t is
understood that officials of the COM
modify exchange on which the metal
futures werc traded have been asked
to confer with Treasury officials with
a view to putting the market back
into service The silver market was
closed at the time the Government
announced the naturalization of
silver steps.
The new Montreal Silver Exchange
pre- baby W Il be sufficiently organized
to be opened for business by next
Monday. Dispatches state that the
exthange las a membership of $50
and that the price of seats at the
opening will be $500 with members of
the Montreal Stock Exchange and the
Nc n1real Curb Exchange being granted
Blil ht concessions on this price The
exchange is TO be controlled by the
Nc 1sreal Stock Exchange According
10 tentative plans a large block of
ges tg will be set aside for United
i5ts ties firms
The dispatches add that the regu-
at cns and rules of the new exchange
vii be almost identical with those
governing trading on the exchange in
,Ne'7 York prior to naturalization of
fily Ct. Commission rates will be COM
parable to those charged in New York.
inc splitting" of commissions with
ou tside" firms will be permitted.
1'rc liable unit of trading will be 5000
cur ces against the $4,000 unit in New
yolk, Montreal contracts will call for
telUry Of silver of 999 flneneSs as
sga rst 992 in London.
Brokers in this city say closing of
the New York silver market has caused
considerable loss in Government
tx revenues. Hence. the move to
r'oIe and not force all trading to
MOI t'eal
Sank Deposit Data Studied.
TIL Federal Reserve System is
b inyilg up to date its statistics on
veloCi y of turnover of deposits of
member banks. This has been indi-
CT tell oy recent request to the men,
btr ir 'titutionS for additional data on
TIE lbjecG. Studies of reserve re-
qlirGilents based at least partly on
the valocity Of turnover were started
some three years ago.
BaSing requirements on velocity the
Wal Street journal comments, would
mea1 that during periods Of depres-
si0n and dull business, when deposit
turnover is slow, reserve requirements
woll!ci be lew, permitting relaxation
OF raoney rates; in periods of high
BUSINESS activity and resultant active
turnover 0t deposits, requirements
could be raised, thus slowing down
credit expansion and bringing about
rise in money rates.
TIE FEDERAL Reserve Board is also
COM letrg its important work on the
rules snd regulations governing mar
gil transactions on the stock eX-
changes. Al indications so far point
to conservative handling of this i'm
portant phase IF new securities and
ex xchsnge ac; Provisions of the mar
gi,l law become effective on October /,
ard some staten ent regarding margins
is ex,pacted arou I'd the middle of Sep
te3nbr.
The Reserve Board is expected to
60 IN furtt er han merely to write
into The reg IlationS the provisions of
the law fix lg The maximum margin
requirement with more details re-
spec ;irg nder-margined account
transfers, ec. The law itself fixes
credit exter 5ion on securities up to
IS ,,er cent Of the current market
price, or 10 Der cent of the lowest
mar Set price at which the security
sold on or after July l, 1888, which,
ever is the higher, provided it does
not exceed Is per cent of the current
mar iet price.
big A. 3. A. Farley Forecast.
Washington bankers are giving lot
of lime and thought to the coming
national convention of the American
Barxers Association to be held in
this city in October
Lsst weeks announcement that
President Roosevelt had agreed to ad-
dress the Nations leading financiers
was the mos important statement
yet made With the President head
ing The program, the convention plans
wers given q remarkable push. What
he has to say to the money chang
ers' will be of intense interest to the
delegates in session here, as well as
to their associates all over the United
States.
IL is probable that other high Gov
ernment officials will also be among
the speakers 1t would be only natural
that Secretary of the Treasury Nor
genthau should be included in the list.
The District Bankers Association is
sponsoring the convention. H. H Nc
Kee is chairman of the committee
handling the Washington arrange
merits. a very important and difficult
job, The A. &. A. has not had con-
veniion here for many years. Ger
tainly the coming meeting will be one
of the best and most valuable to the
meGlberS ever held and will draw
thousands of visitors to the Capital.
Heard in Financial District.
Joseph Sanders, first vice president
of the Bank of Commerce & Savings,
and vice president of the Equitable
Life Insurance Co. of Washington, has
returned from a two-month tour of
Europe.
John F. Parker, one of the managers
of the Washington Office of c. M P
Murphy g. 60, is back from months
vacation passed at the Maine coast re-
sort, other places in New England,
Lake PlaCic and Long Island, N. Y.
Edward l., Hillyer, vice president of
the Union Trust Co., and former
president cr The Washington Stock
Exchange. is on business trip to the
Pac 'fic Coas-.
The Treasury reports subscriptions
totaling S222, ,l85 900 for the 75,00O,-
900 l82-day bills offered on August
"a. The tenders were opened at the
Federal ReSer'e banks Monday, and
$75065,000 accepted
The regular August meeting of the
council Of adr niStration of the Dis
trict Bankers association will be held
Friday afternC On, President F. P. H
Siddons announced today.
Exchanst Trading Heavy.