Evening star., 1935-03-16
BANKERS RECALL
WAR DRIVES HERE
Washington FinanCierS Took
Leading Part in Liberty
Loan Campaigns.
BY EDWARD C. STONE.

Bankers in the financial district
today we're recalling the sale of the
first Liberty loan bonds in July, 1917
which have just been called for re-
demption to be paid off on June Is,
the amount aggregating S1,993 100000.
The bonds were put out as part of
the great Liberty loan campaign in
which Washington flnanciers took
leading part Special drives were car
ried on in all the banks, bank officers
made speeches at public gatherings
and urged patrons to buy as many
Of the bonds as they could, advocating
purchase as an investment and also
as patriotic duty to the Government.
Several Washington financiers were
rewarded with special commendation
by the highest Treasury officials as
quotas were sold by the different
banks. over the top" was the eX-
preston as the different institutions
disposed of more than they were ex-
pected or asked to sell. Now this
first issue has been called and will
soon fade out of the financial picture.
But it will long be remembered. The
Treasury's refunding operations which
are designed to save the Government
around $lOO,0OO,OOO year in interest,
according to Secretary Morgenthau.
BY calling all outstanding first
Liberties, the Treasury has only the
remaining two series of fourth Al
Liberty bonds to deal with, and these
will be called on April Is for October
is payment.
Huge Interest Sums Saved.
Thus far, more than $30000,000
interest has been saved on converted
4l4s, and another S25, 100000 will be
saved on the current exchange offer
ing. Conversion of the last two series
to a 27s per cent basis will mean
economy of further Sl7000000. In
addition, the Treasury will save S13,-
100000 year in interest on the
S675, 100000 of per cent consoS and
2 per cent Panama Canal bonds called
last week for retirement in July ard
August.
The latest call affects all the first
Liberty loan bonds, including S1392,-
226.25O of 31aS, S5,002 ,450 of converted
Is, $685., ,489, 100 of converted 4i4s and
S3,492,150 of Second-firSt converted
Alas, or grand total of 81 ,933 ,209.950.
Refunding of these issues on 27s
per cent basis would save slightly
more than Sl6,OOO,OOo a year.
With the completicn of the conver-
sion operations already undertaken,
the Wall Street Journal points out,
the Treasury will have no further
opportunities to refund long term
obligations until 1910. After that
year a large number of Treasury
bonds become callable. but many OF
them bear coupons of 33s per cent or
less. About S225O, 100000 of securities
will be left outstanding with coupons
of more than 33a per cent. including
AIS, as and 334s.
It is probable holders of the first
Liberties called this week will be
offered a choice between long and
intermediate securities in exchange.
The Treasury will be cautious not to
overload the market with long term
bonds in view of the indicated future
need for borrowing.
District Outranks States.
An analysis prepared by the Federal
Housing Administration of the poten-
tial market for all products and
services used in the repair, mainte-
name and construction of the home,
reveals the fact that the District of
Columbia stands ahead of the 48
States IN the estimated per capita
quota.
The total dollar volume of the
potential housing market is estimated
at from ST. 900, 100000 to over $4,000
100000 with an average in normal
times of $500 100000. Such figures
are, however, little more than guess,
but on this per capita basis, Wash
ington leads with Sl2 per person per
year.
Maryland has potential building i'm
provement funds of s8.14 per person,
West Virginia, S6O4; Virginia, s5'92;
North Carolina, s4.92, and South
Carolina S459.
The quotas we're based on popula-
ton; number, type and value of
dwellings: purchasing power. and
building group outlets. The analysis
excludes expenditures for housing
financed through direct Government
subsidy
An analysis also was made of the
potential housing market on a per-
centage basis, showing that 38.5 per
cent of the entire market is con-
centrated in the five States of New
York, Pennsylvania, Illinois. Ohio and
California, New York leading with ll.2
per cent.
Financial District Gossip.
The Richmond Reserve Bank has
notified all banks in this district OF
the 100000 900 offering of Treasury
bills, dated March 20, 50,000,000 ma
turing September 49, 1885, and the re-
naming half on December 18 of the
present year. Tenders will be re-
ceived up to 2 pm. next Monday.
The Securities and Exchange Com
mission has ordered the registration
on the New York Stock Exchange of
$1,000 900 10-year convertible per
cent debentures due January l, 1945,
and 100000 shares of 81 par value
common stock of the Studebaker Corp
to become effective upon receipt of
official notice of issuance by the ex-
change, and upon consummation of
the plan of reorganization.
The total number of General Mo-
tors stockholders for the first quarter
Of 1885 was 35O,663, compared with
350,l64 in the fourth quarter of 1884
and 351,949 in the first quarter of
1894. All but 19.466 represent holders
of common stock, the other owning
the preferred.
Col Ayres of the Cleveland Trust
Co., in his monthly review, states that
general business activity neither made
important gains nor suffered serious
setbacks during the first quarter. A
deterring influence, he asserts, has
been the continuing doubt as to the
conditions under which business is to
be conducted. He says business can
adapt itself to almost any conditions
and 60 forward, once new rules are
made definite and constant.
Uncertainties include rapidly shift