Evening star., 1938-09-02
Cash Loan Predicted.

June 001,646 09J,0Ul
July - 536,818 527,554
August 5l7.138 574.586
Cash Loan Predicted.
Washington bankers today were
much interested in a prediction by
the American Banker that the Treas
ury's September financing plans due
on the 9Th of the month, would in
clude some cash borrowing.
The Government bond department
of the magazine declares the more
authoritative belief in Washington and
New York is:
That the Treasury will ask for a
cash loan of at least 100000 900;
That the offering will be in the
form of long-term bonds and prob
ably an additional issue to the United
States Treasury 234s of l96358, orig
inally sold in June and now quoted
at around lO2 to yield 26l per cent;
That the new bonds will be worth
at least ll2 points over the formal
offering price of 100 to any buyers
able to get hold of them;
That this price prediction is based
on the opinion that the markets re-
action of the last few days was en-
tirely justified and that the drop
should be about over;
And that the s433,00O.O0O Ia per
cent notes of December Is, probably
will be called on the 9th and refunded
into the 2s4 per cent bonds. Their
price of l0lss. to yield loss equiva-
lent of l3s points. indicates that lot
of investors anticipate a redemption
prior to maturity, at any rate
Trade Signs Better.
"Although there was no general i'm
provement in business conditions in
the Fifth Reserve district in July and
the first half of August, there were
several indications of a stronger tone"
declares the monthly report of the
Federal Reserve Bank of Richmond.
The most marked change occurred
In rayon sales, deliveries by producers
reaching the highest figure on record
and nearly doubling shipments of yarn
in June. This sudden demand cut
substantially into surplus yarn stocks
built up by producers during the win
ter. and caused an increase IN August
in operating time at mills.
Cotton textiles also we're in better
demand during the past month, but
the improvement was much less
marked than in rayon. Toba eco auc-
tion markets opened in the South
Carolina belt early in August and to-
bacco sold for prices averaging around
$27 per hundred on unofficial calcula-
tions. The quality of tobacco appears
to be good, although somewhat light
in weight.
"Seme increase in employment de-
veloped in July and early August as
rayon and cotton manufacturers added
employees, tobacco markets began sales,
and coal output increased. Bituminous
coal mined in July rose 4 per cent
above June production, and although
July output was q per cent below July,
1887, production, it compared more fa-
vorably with last year than output
in some other recent month
Debts Off Seasonally.
"Debits to individual accounts showed
q seasonal drop of per cent in July
under June, and were but IA per cent
below July, 1887, debts Except for
tobacco, which deteriorated because of
excessive rain, crops improved or held
their own during July. There were no
significant changes affecting business
in banking last month.
Construction work included in
building permits issued and contracts
actually awarded was less in July than
in either June this year or July last
year. However, large amount of
work, chiefly dependent upon Govern
ment loans or grants which have been
approved, are in the planning stage or
about ready for bids, and the outlook
for construction work for the near fu-
ture is therefore better than it has
been for some time
Financial District Notes.
Most boardrooms of brokerage houses
here was deserted today and little
business is expected in the short ses-
sion tomorrow. Customers. who were
not already away on vacation, started
leaving the city as early as yesterday
for an extended weekend rest over
Labor Day. 1t was noticed that the
New York market acted very well
despite its dullness.
In quiet trading on the Washington
Stock Exchange this morning, 10
shares of Washington Gas Light pre-
ferred moved at 997s, unchanged from
the last previous sale. Ten shares of
Washington Railway g. Electric pre-
ferred sold at 112l2, also unchanged
After the call, 10 shares of Capital
Transit changed hands at 8, down
half point from the years peak set
week ago Monday.
Albert S. Galley. executive vice pres
ident of the Lincoln National Bank,
who is vacationing in Florida, cele-
brated his birthday today He is serv-
ing his 9th term as treasurer of the
District Bankers Association.
James c. Dulin, jr., treasurer OF
American Security & Trust Co., has re-
turned from his vacation Robert L
Flather, assistant secretary of the
same institution. also has returned.
Representatives of the Connecticut
General Life Insurance Co. will meet
for three-day conference, September
Z. 8 and 9. at Swampscott, Mass.
Armand Durant and Floyd M. Drury
Of the Armand Durant agency here
have qualified for attendance by meet
ing sales requirements set for a seven
months period ending August /.