Evening star., 1955-06-26
Capital Bankers;
Screen Loans,
Talk Rate Rise
BY DONALD u. MADLEY

OuN nNOBV HNhSV
BY DONALD y. MADLEY
While their outstanding loans
continue TO edge forward 10 new
10 ll.time highs. Washington
bankers are not out looking for
new loans and are making than
only on Q selective basis, Q sur.
|vey indicated yesterday.
The money situation hare -
well as nationally Il described
as fairly tight" In other words.
there Is hardly Q large enough
supply Of money and credit avail
able to meet present demand
for loans.
In the competition for invest.
ment funds interest rates have
hrmed up and bond prices have
eased on In order to furnish
higher yields.
Capital bankers understand
THAT most New York bankers
would like to see the prime rate
raised from 8 10 ~ Per cent
but that none % far wants to
take the initiative Sfor fear Of
Icriticism. A higher rate might
serve as q brake on demand.
Increase Anticipated
Seasonal demands on the
market in late summer and early
fall, plus anticipated Govern
iment financing, are expected to
increase the tightness Of the
market further and there has
been some speculation a. to
what action the Federal Reserve
Board might find necessary 10
increase the supply Of money
and credit then.
Washington bankers are un.
derstood to be taking care of the
credit needs Of old customers,
but are very sslecttve with new
customers. While they have not
had to borrow outside funds yet,
q number are understood to bs
Just about ''loaned-up" on their
own funds.
The deposit situation Is pretty
good, but totals Of most Wash-
ington banks are below their
peaks, especially since withdraw.
ais for June Is tax installments
began. Generally, they are weIl
above q year ago.
i Tax Payments Boosted
The additional step-up in tax
payments this year has resulted
in corporations paying all 1854
taxes by mid-year and they win
pay 10 per cent Of their esti-
! mated 1855 income taxes In the
!. remainder Of the year. 1t was
pointed out. .rts
This contrasts with o year ago
! when only so per cent Of 1858
|. taxes had to be paid by mid.
!. year. The increased drain on cor
porate cash has been terrific.
What the Fed" will do II the
} situation becomes too tight In
! q big question. Most bankers
remember the quick reversal in
Federal Reserve policy in 1853
when the swing toward defiation
became too pronounced.
Bid for Anacostia Raised
The bid for Anacostia National
! Bank stock advanced to $3.50 q
share on the over-the-counter
! market here at the weeks close,
compared with previous bid OF
!. $215 q share.
Washington bank stocks are
very closely held and few flnd
their way to market. As . result
IAN occasional order can cause o
! sharp change In the bid. The
!. Anacostia is continuing its steady
growth under President A. Scott
Offutt.
The bid for Bank Of Silver
Spring stock was raised again,
from $24 to $25 q share.
i Pepsi Continue Rise
Pepsi Cola Bottling Of WASH
,Iington continued its long rise
and was quoted at 4A bid and
lKM asked A week ago II WAS A,t
Az and 5A.
i Last fall when James W.
Carkner. board chairman Of the
parent Pepsi-Cola Company. &C.
quired control Of the Washing
ton bottling company, the local
shares were bringing only 81 .
share and previously had been
well below that level.
Called Leading Factor
The "ever-lessening degree Of
Federal participation In private
enterprise. Is the biggest single
motivating power for the bill
market In stocks, declared the
semiannual forecast Of the Fitch
Survey.
It points to the broad advance
In all economic indicators and
says it Is no wonder that th0
stock market has reflected the
unprecedented activity. It pre-.
diets the Dow-Jones Industrial
Average may hit the 500 level
in the not-too- distant future as
the gains in national industrial
activity continue for the rest Of
1855.
| Apparel Show Scheduled
\ The Washington - Maryland
MEMS and Boys Apparel Club
lwill hold its annual Fall Apparel
Show at the willard Hotel On
July 10 through July IL.
Air-conditioned display rooms
will be open from Q am. TO 0
Ip.m. for the three days and show
lofilcials say the Nations leading
'|lines Of mems and boys apparel
will be shown.
New Quarters Opened
Rosenthal Chevrolet. Arling-
toms newest Chevrolet dealer,
has opened new sales and serv-
lice headquarters at South Glebe
road and Columbia pike,
! The new steel and brick struc.