Evening star., 1942-04-14
D. {. Bankers F'oresee
Sharp Increase in
War Loans
Financing Is Expected
To Speed Production,
Help Small Firms
BY EDWARD C. STONE.

QlCI6U SlldIP - l1lClCeoC Al Wal AodiAo
to small business and industry,
speeding up war material produc-
fion and the salvation of many busi-
hess concerns which have been
blocked in obtaining necessary
financing.
/ Regulation v just put into effect
by the Federal Reserve Board, fol-
lowing President Roosevelt's order
making credit for the prosecution of
The war more easily obtainable
meets a situation which had bafled
bankers, contractors, subcontractors
and small business everywhere.
Bankers say they could not grant
certain loan requests because small
business firms had not actually re-
ceived contracts to supply war mate
rails to the Government. On the
other hand, these concerns could
not obtain the contracts until they
could show ample financing. End
less delays and in some cases COM
plete deadlocks resulted.
AS the Capital is not an indus
trial city bankers here expect to
grant more loans to businessmen
furnishing Army supplies than to
manufacturers. Three military pro-
curement agencies are now author
lied to guarantee commercial banks,
Federal Reserve banks, Reconstruc-
ton Finance Corp. and other lend
ing institutions against loss on loans
for financing war orders.
g New Loan Plans Outlined.
The Federal Reserve bank in each
district will act as fiscal agent for
arranging the loans and guaran-
tees. 1t is announced that the War
Department aims to aid existing
loaning agencies in every way pos
sible. Banks are expected to con-
tinue making as many loans as pos
sible on their own initiative, the
Government seeking to avoid COM
petition.
Interest rates on these guaran-
teed loans are not to be more than
S per cent. Regulation V takes into
consideration the fact that many
applications for war loans cannot
be Judged on the basis of peace
time practice in banking procedure.
Under the new instructions, If a
loan does not exceed 100000, it will
be approved at the Federal Reserve
bank without reference to Washing
ton.
An Army officer stationed at each
reserve bank will help speed up the
loans. He will certify that the ap-
plicant is qualified from a technical
or production standpoint to carry
out the contract. 1t is anticipated, !,
however, that many firms will ar
range their credit needs with the
banks Oh other lending agencies
without aid from the War Depart
ment.
The Federal Reserve Bank of
Richmond has already forwarded
full details of the new rules to the
banking institutions in this terri
tory. All have the green light.
Washington Gas Issue Filed.
Officials of the Washington Gas
Light Co. went to Philadelphia early
today to register with the Securi-
ties and Exchange Commission the
proposed issue of 10000 shares OF
S5 cumulative preferred stock, which
was approved last week by the Pub
lie Utilities Commission here.
Registration time, which formerly
took 20 days, has been reduced by
the S. E. c. and the issue is now
expected to be approved in about
10 days. The stock then has to be
offered to the common stockholders,
the option period lasting about 10
days.
It was predicted in the financial
district today that the stock will
be offered the public around May
IL, possibly a day earlier. Much
interest already has been manifested
in the issue.
Electricity Sales at Peak.
Kilowatt hour sales by the Poto-
mac Electric Power Co. in March
reached the highest figure for that
month on record, officials announced
today.
Sales totaled sO,666, 1892 kilowatt
hours, against 79,826,879 in March
year ago, an increase of 10,839 ,518,
or a Jump of 1883 per cent.
Sales in January of this year to-
tailed 81 1862 $50 hours, and in Febru-
ary amounted to 89,352,923 which
was a gain of more than 16 per cent
for that month.
In the first quarter of this year
Potomac power sales reached 271,-
881,874 kilowatt hours, by far the
highest record ever made in the first
three months of any year, the report
shows
War Bond Sales Mount.
Reports Just received by Y. E.
Booker, chairman of the Investment
Bankers and Brokers Unit of the
District of Columbia Defense Saw
ings Committee, show that the unit
has sold War savings bonds to a
total of $706,535 during the period
from January Is to March 81, 1912
Members of the unit are making
an especial effort to promote the
purchase of bonds by large numbers
of their customers and are advo-
eating the inclusion of the popular
series E bonds in all portfolios, ac-
cording to George B. Burrus, chair
man of the bond information di-
vision of the District of Columbia
Defense Savings Committee.
d. C. Accountants to Meet.
Requirements for Effective In
ternal Audit and Control" will be
the subject of a talk by Wayne
Kendrick, c. P. A., at the monthly
meeting of Washington Chapter,
National Association of Cost Ac-
countants, at the Hamilton Hotel
tomorrow evening.
Mr.. Kendrick is president OF the
District OF. Columbia Board OF Ac-
1countancy and past president OF the
District of Columbia Institute OF
Accountants.
Steamboat Stock Very Strong.
Five shares of Norfolk & Wash
ington Steamboat Co. stock sold at
90 on the Washington Stock Ex-
change today. This was gain OF