Evening star., 1935-07-08
BANKERS NOTIFIED
OF NEW j. s. ISSUE
Applications From D. c.
Area Will Be Received by
Richmond Reserve.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
All banks in Washington received
notices today from the Federal Re-
serve Bank of Richmond regarding
the new $5OO,Ooo.0o0 Offering of
United States Treasury l3s per cent
notes, to be dated July Is, 1885, and
due December IS, 1899.
Applications from banks and trust
companies in this area will be re-
ceived by the Richmond bank with
out deposit. but will be restricted to
one-half of each institutions COM
bined capital and surplus, the notice
says Applications from other sources
must be accompanied by deposit of
5 per cent of the amount requested.
The notes, which will not be sub
jected to call for redemption prior to
the date of maturity, will be issued
in denominations as small as Sl00
and as high as 100000 Most of the
money raised by the Treasury
through the note sale will be used in
istration projects now getting under
way.
Bankers here today said they would
secure the new notes for any Gus
toners desiring them. They added,
however, that it was too soon to tell
how many of the Treasury notes
might be wanted by the banks or
their customers. They called atten-
tion to the very low rate offered,
which means an equally low return to
investors in spite of the tax eXemp-
ton features.
Bank Examiners Meet Demands.
With few exceptions State bank
commissioners have informed the
State bank examiners of the attitude
of the controller of the currency re-
rarding the mutual mortgage lnsur-
ance plan of the Federal Housing Ad-
ministration and instructed them to
act accordingly.
Because of the insurance provided
for loans of this type and because de-
bentures of the mutual mortgage in
surance fund issued in exchange for
property securing mortgages, which
are insured prior to July /, 1887, Shall
be fully guaranteed as to principal
and interest by the United States, ma
tional bank examiners have been in
structed by the controller not to Clas-
sify such loans held by national banks
as slow, doubtful or loss.
In response to letters sent to bank
commissioners by officials OF the Fed
eral Housing Administration. nearby
States have issued instructions to
State bank examiners similar to those
issued to national examiners or have
indicated their intention to do so in
the near future: Marylnad, West Vir-
ginia, North Carolina, South Carolina
and Virginia.
Eccles Defines Sound Money.
I'VE have sound money when our
system behaves in such a way as to
help rather than hinder the full and
ef1cient use of our productive re-
sources" says Gov. Eccles of the
Federal Reserve Board in Sphere
Magazine.
I'VE have sound money when the
energy and skill of American workers
the productive capacity of our great
industrial plant and equipment and
the fruitfulnesS of our land and nat
lral resources are used in such way
as to make our real income of goods
and services as large as possible, not
merely for few prosperous years fol-
lowed by q period of idleness and
want. but for year after year Of endur-
Ing stability.
This, 1t seems to me, should be the
criterion of the seundness of money
and not the amount of gold that is
stored in the vaults of the Treasury"
Southern Rail Nets Lower.
Class l railroads in the Southern
district for the first five months of
1885 had a net railway operating in
come of $20,892 1877, which was at the
annual rate of return of 1.52 per cent
on their property investment. For the
same period in 1884, their net railway
operating income amounted to
s29,114,177, which was at the annual
rate Of return of 211 per cent on their
property investment.
Gross operating revenues of the
class / railroads in the Southern dis
trict for the first five months in 1885
amounted to $17s,521,512, a decrease
of four-tenths of l per cent, compared
with the same period in 1884, while
operating expenses totaled $139,974,-
610, an increase of ga per cent.
Glass / railroads in the Southern
district for the month of May had a
net railway operating income of
S2,931,9 $50, compared with s3,986,374
In May, 1884.
Today's Trading on Exchange.
The weeks trading on the Wash
ington Stock Exchange started of
with Capital Traction SIS selling at
the strong price of 9714 on two 81 900
transfers. Washington Gas SIS, 1858,
moved at 10534 on a $500 sale.
American Security & Trust Co.
stock came out today in four 10-share
lots at 1913, unchanged from other
recent sales. Washington Railway &
Electric preferred sold at 1852, on
tiny transfers, and Potomac Electric
Power 512 per cent preferred stock
appeared on the board at ia.
Capital Transit stock sold at 10,
10 and II share sales being recorded.
The stock closed with 10 bid and 1914
asked, very small spread.
Heard in Financial District.
Thomas J. Groom. vice president
and cashier of the Bank of Commerce
& Savings, was back at his desk today
after a short vacation.
James c. Dulin, jr., has returned
from a months vacation in Alaska
and assumed his duties as treasurer
Of the American Security & Trust Co
Holders of Paramount Publix Sc
curities in this city received word to-
dav REGARDING the next reorganiZatiOn