Evening star., 1936-08-03
HIGHER RESERVES
EASILY SUPPLIED
A. B. A. Magazine Says New
Rules Will Cause no Real
Embarrassment.
BY EDWARD C. STONE.

the American baHkeIS ASSoSideioi'
saws in the August issue that there is
some uncertainty regarding the i'm
mediate and ultimate effects of this
action. This is hardly to be wondered
at. as the whole theory of changing re-
serve requirements is new and its effect
unpredictable, the magazine says, and
adds:
There is no question but that an
abundance of money is still available
in the banks for all sound commercial
and industrial purposes and whatever
concern may be felt as to the effects
of The move has to do chiefly with the
securities markets and the prices of
Government bonds.
Some clue to the condition of banks
of the country may be found in the
fact that the Federal Reserve Board
Of Governors could raise the reserve
requirements of member banks by SO
per cent without causing any percept-
ible embarrassment to individual in
StitutionS.
THE excess reserves of member
banks are quite equally distributed,
both as to geography and size OF banks.
The action of the reserve authorities
and the lact of any immediate result
may very we'll show the necessity OF
some policy which will effectively curb
credit imitation. 1t is estimated that
by the middle of August, when the new
requirements go into effect, the excess
reserves on the present basis will have
reached 3,500,000,000.
THE new requirements will reduce
this excess to about $1,950,OOO 900.
Under anything like normal conditions,
S5O0,000,000 in excess reserves would
be considered indicative of easy money
conditions, SO that the continued ex-
istence of more than three times that
amount tells its own story as far as
credit control is concerned.
1T is hardly justified to assume
from this that the increase to reserve
requirements was only gesture. There
is a definite significance in any move
to test the brakes. In this respect the
action was important, because it DEM
onstrated the intention of the reserve
authorities to use their own power of
credit guidance at time when the
subject Of imitation had again come to
the front as a factor in stock market
trade"
Bank Delegation Enlarged.
It looks now as If about 10 we'll
known Washington bankers would
make up the delegation attending the
annual convention of the American
Bankers Association at San Francisco
In September.
George o. Vass, vice president and
cashier of the Riggs National Bank,
will have a seat in the front row
throughout the four days session. He
is a member of the A. B. A. Executive
Council and is also member Of one
or more important committees. Mr..
Vass was president of the District
Bankers Association three years ago.
M. F. Calnan, president of the Lib
erty National Bank, is another WASH
ington banker who expects to take
the San Francisco trip. He has been
at the head of the Liberty National
since the death of Rolfe E. Boiling,
and is one of the youngest men in
charge of any bank in the city.
AS already announced, five other
Washington financiers have made
reservations for the trip, and reser-
vations from banks in other parts Of
the country have been surprisingly
large.
Firm Adds Special Partner.
c. Russell MacGregor became a
special partner in the New York
Stock Exchange firm of Auchincloss,
Parker & Redpath, it was announced
at the company's head Office here
today. He is a New Jersey man, has
been in Wall Street for some time and
will be associated with the company's
New York Office.
The market value of 100 repre-
sentative common stocks advanced
s1,355, ,46O 900, or 666 per cent, in July,
according to the monthly compilation
of Frazier Jelke & Co. The total
value of S21, 1872 $4,000 at the end of
the month compared with 20,427,-
5000 at the end of June, and
records new peak for the year. The
market has advanced in IA of the last
IS months. The largest rise in July
was gain of s251 ,219,000, or 1863 per
cent, in the electricals.
On a percentage basis, advances
were IS per cent in the building
shares, 1875 per cent in the utilities,
ia per cent in the rails. 89 per cent
In the mines, 8.8 per cent in the
steels, ga per cent in the railroad
equipments, SO per cent in the retail
shares, AS per cent in the oils, 35
per cent in the industrials, flve-tenths
of per cent in the motors and three
tenths Of per cent in the chemicals
Heard in Financial District.
The Washington agency of the Mu-
tual Benefit Life Of New Jersey reports
that July proved the best month for
new business this year. The July
leader for both lives and volume was
George E. Harris, with Edwin P. Par
ker and George C. Campbell tied for
second place in volume and Francis
e. Miller in second place for lives.
Next month the agency will celebrate
the ninety-first anniversary of its
founding.
Howard Moran, vice president of
the American Security & Trust Co.,
and Frederick P. H. Siddons, secre-
tary of the same institution, were
back at their desks today after being
away on vacations for a month.
The B. F. Goodrich Co. has filed
an amendment with the S. E. c. post
poning the proposed offering date of
its s28,o00,00o Az per cent first mort
gage bonds, series A, to August 81.
The Chesapeake g. Ohio Railway
Co. has called the refunding and i'm
provement mortgage AZ per cent
bonds, series A, due October 1, 1898,
for redemption October at ITO and
accrued interest.
Several Washington bankers con-
nected with the financial advertising
are planning to attend the twenty
first annual convention of the Finan-
cial Advertisers Association at Nash
vile. Tenn, September 14-17. An