davidaulloa/AmericanStories huggingface dataset:
Evening star., 1956-12-19
Fight on Interest Rates
Likely in New Congress

the rate at which banks borrow
money from the Federal Reserve
System. This has worked to in
crease all rates.
The Federal Reserves pur-
pose is to check imitation. AS in
terest rates go up. people are
tempted to save more and spend
less; business tends to postpone
spending for new plants and
buying for inventory.
An overwhelming majority of
economists agree that raising in
terest rates tightens the money
supply and is therefore anti
infiationary. Prices have con-
tinued to rise since the Federal
Reserve boosted the rate. The
economists answer is simply that
they would have gone up even
faster and further if the brake
had not been applied.
There are many elements in
the economy who are violently
opposed to higher rates and
are clamoring for a, return to
Cheap money" Among them
are:
Debtors: Everyone who owes
would benefit from lower
interest. Even families owing
money on 4 per cent, 3O-year
mortgages stand to benefit; if
they were forced to refinance
right now they'd have to agree
to 5 or 6 per cent for the next
80 years. "
Installment buyers: Interest
rates and carrying charges on
installment purchases have not
yet been sharply raised. although
lengths Of contracts have been
shortened considerably. However,
if high interest rates continue,
it is certain that installfnent
add-ons will be sharply id
creased. 1t is also likely that
some retailers will charge in
terest on charge accounts un-
paid after 80 days. Merchants
must charge more for credit be-
cause they are paying more to
finance it.
Evening star., 1956-12-19
SEC Opposes Increase
In Stock Sale Tax

The Securities and Exchange
Commission yesterday notified
Congress it opposes a proposed
increase in the tax on stock
transfers and issues.
In a letter to the House Ways
and Means Committee the SEC
said the proposed rates would
increase substantially the tax
collected on stock transactions.
1T might also widen the spread
between the prices bid and the
prices asked, it said, thus re-
.sulting in poorer markets and
increased costs to the investing
public"
The commission asked the
congressional group to study the
question whether the proposed
higher tax might discourage
corporations from raising funds
by issuing common stock and
induce them to borrow through
bond issued Ito greater degree
than might be desirable"
The proposal now before a
ways and means subcommittee
would establish a tax rate of 5
cents on each $100 of actual
value of the securities. SEC said
this would mean an increase of
35 per cent over the current
tax on transactions on the New
York Stock Exchange.
The letter went on:
The exchange estimates thsN
the increase would amount to
approximately $2,8 million year
on transactions effected on the
exchange and that the increase
on all stock and bond transac-
tons executed through member
firms of the New York Stock
Exchange both on and off the
exchange would be $50 million
a year.
THE exchange estimates that
the new proposed rate would
yield total increased revenue on
all stock transactions Of between
Sl1 million and SITS million a
year"
Evening star., 1956-12-19
FIRST VIRGINIA-MADE GASOLINE

Small businesses: Small firms
are finding higher interest bur-
denSome. In addition, every time
a small business is denied a loan
w h atever the reason, even
gross mismanagement it is
tempted to blame the Federal
Reserve.
Improbable businesses: Higher
rates hurt big businesses, too,
if they are not operating profit
ably. However, they are of little
Importance to profitable corpora
tionS.
Contractors: Home building and
public works are being cut back
because families and governments
hesitate to pay today's rates.
Local politicians: Higher rates
are making it more costly to build
schools. monuments and other
structures to which they can
point with pride.
Taxpayers: Higher rates are
making it more expensive to carry
Fedora. state and local govern
mental debts, hence more money
will have to be taken from tax
payers.
People who can save, are i'm
mediate beneficiaries of higher
interest rates. And if higher rates
can check initiation, then every
American will gain in the long
run.
Congress, it should be noted,
cannot lower the rate by law. 1t
can force the Federal Reserve. to
act. however, by taking away
some of its powers or simply by
threatening to.
Mcclure Newspaper Syndicatel
Evening star., 1956-12-19
$3.50 Million
Bond Issue

NEW YORK, Dec. 10 (P.-Di-
rectors of American Telephone &,
Telegraph Co. today authorized
a new $3.50 million bond issue.
The company said it plans to
offer the bonds at competitive
bidding March 26.
A similar bond issue of $3.50
million was sold by AT&T
last July. The interest rate for
the July issue was 3.78 per cent.
Terms OF the new issue have not
yet been set.
Evening star., 1956-12-19
New Pressure
Seen for Rise
In Steel Prices

NEW YORK, Dec. 10 up. -
Pressure is building up for an in
crease in the price of steel, the
Iron Age, national Woodworking
weekly, said today.
Rising costs have brought
extra price raises by some mills
on important steel products, in
Guiding sheets and alloy plates,
the magazine said, and some
stainless steel base prices began
moving up last week.
Nickel and ferroalloys now
have been added to the STILL
growing list of steelmaking raw
materials that have risen in price
since the general steel price hike
of last August, Iron Age said.
Higher freight rates will add
fuel to the fire." it commented.
Iron Age said that increases to
date on tonnage products affect
only those charges made by the
mills for extra processing.
The weekly predicted the steel
market would "highball into 1857
at a near-record pace"
steel orders are running in
excess of production, even though
mills last week established an
all-time record of 1924 per cent
of capacity" the magazine said.
Order carryovers into the new
year will be heavy"
Oil country goods-steel prod
ucts for drilling and casing of
oil wells-will shortly be as hard
to get as plate and structural
steel, the magazine said. In ad-
dition, it said, increasing auto
motive demand is putting the
pressure on cold-rolled sheets.
Detroit's orders for February are
up over January. which in turn
is better than December, Iron
Age said.
The magazine forecast total
production of lis million tons
this year despite the 34-day
strike of last summer. This is q
million tons below 1855 all-time
record.
The magazine also noted that
scrap prices are beginning toI
level off.
Evening star., 1956-12-19
YOUR
MONEYS WORTH
Wooinq Savers Funds
BY SYLVIA PORTER

You must have seen the head,
lines recently. Commercial
Banks Allowed by U. S. to Pay
80 on Savings" Fedora
Reserve Board Permits Banks tc
Raise Interest Rate to go"
Banks Across the Country Be-
gin Raising Rates Paid on
Savings"
What" you might under
standably ask, sis this all about?
The bank on my corner isn't
paying me anywhere near 3 per
cent on my savings. How Gomez"
The first part of the story
behind the headlines is this:
Not in over a quarter century
has the demand for money to
help finance the building of
homes, the buying of cars, the
construction of factories, etc.,
ETC., been so fierce.
AVohc WAuCiy OOuSnL
just about every type of bor-
rover imaginable is hammering
at the doors of all financial in
Stltutions asking for loans. In
recent months. the demand for
money has overwhelmed the sup
ply OF money and there lust
hasn't been enough cash to go
around. Loans have been COM
manding a higher and higher
price. borrowing charges have
scared.
The Federal Reserve Board
has refused to print" the extra
currency wanted. because it
figures this simply would add to
intationary pressureS.
So there's only one other way
banking and lending institutions
can get more funds to lend-and
that is to convince you to save
more.
That brings us to the second
part of the story. =.
The scramble for savings has
become intense. Every national
organization of financial insti-
tutionS is deep in a drive to make
you more thrift conscious than
ever before.
They're going after your saw
ing dollar by putting on un-
precedented promotions and ad-
yertising campaigns.
And they're also going after
Evening star., 1956-12-19

you by offering you more inter.
est on your savings.
And that brings us to the
third part of the story.
In this trend toward higher
payments on savings, the saw
Iings and loan associations and
the savings banks have been far
in the lead.
Regulations Cited
Commercial banks have been
bringing up the rear and one
reason they have is that for the
past 81 years. they have been
forbidden by Federal Reserve
Board and Federal Deposit In
urance Corp. regulations to pay
more than 2la per cent on say
ings deposits. actually, less
than half the commercial banks
in the country pay even 2ia per
cent?
But some big banks-particu-
larly those in centers such as
New York-have been complain
ing bitterly to the authorities
that they have been losing de-
posits because they can't pay
attractive enough rates. For a
long time, these banks have been
urging a raise in the rate CELL
ing.
Finally, the Federal Reserve
Board. and the FDIC have agreed
and the rate ceiling goes to 3
per cent on January /.
The official explanation for the
move is that the authorities hope
this will encourage more saw
lngs SO there1l be more funds
available for the financing of
desirable projects, but, of course.
the move also is designed to
place commercial banks which
want to compete on rates in a
better competitive position.
And that's it. The per cent
rate is by no means guaranteed
to you; it's just new maximum.
Copyright 1856 Hall Syndicate, Incl
Evening star., 1956-12-19
BY ELMER ROESSNER

One of the biggest and most
bitter battles in the early days
of the new Congress will be over
interest rates.
Cheaper money!" will be a
rallying cry of many diverse in
terests.
Interest rates are now high
because the Federal Reserve
Board raised the rediscount rate,
Evening star., 1956-12-19
FOREIGN EXCHANGE

NEW YORK, Dec. 10 LP).-Foreisn
exchange rates follow. Great Britain in
dollars. others in cents Unbalanced un-
less otherwise noted)
Canadian dollar in New York open
market 4,s per cent premium or l04 81 z
United States cents
Great Britain (pound), 2.1SU. of IA
30-day futures. 2.77 II 1872, of IJ35:
6O-day futures. 2.76 23/32, up lI35;
g0-day futures, 2.75 $3.50, up 1872;
Belgium tfrancD. .9sis. of .00is: France
francl. .2Sss Of cent Germany (West-
ernl (deutsche mark, 1850; Holland
tguilder), 26.l2: Italy Qiral 16I4 OF a
cent Portugal 'Cescudo). $50; Sweden
tkrona). 1894: Switzerland franc
freel, 2334; Denmark Ckronei. 1850.
Latin America-Argentina ffreel. 2.75.
of .07; Brazil Qreel, / SO. up o.;
Mexico, sol; Venezuela (bolivar) &c. .03.
Far East-HonR Kong dollar, II %.
Evening star., 1956-12-19
Riggs Action Announced
BY Fleming, BiSselle

Robert v. Fleming, chairman
OF the board, and Hubert T,
Bisselle. president of Riggs Ma
tional. announced the rate of in
terest on savings deposits will be
as follows: 3 per cent per annum
on balances from $100 up to and
including $4,000. 2 per cent on
balances over $4,000.
AS heretofore. interest due the
depositors will be credited on
April / and October / of each
year.
Action was taken in accord
ance with the recent change in
Federal Reserve regulations
permitting member banks to pay
up to 3 per cent on savings and
is in line with the recent higher
level of interest rates on loans
ana investments. the announce
ment said.
Union Trust Co. also an
npunced it will increase interest
on savings accounts.
The rate will be increased from
2ia per cent to 3 per cent with
out limitation as to balances
from $100 upward. it was an
npunced by President Linwood
P. Harrell.
Interest computed on the low
balance for each six months
interest period and will be cred
tied semiannually on April 80
Rhd October 81.
Bruce Baird, president of Ma
tipnal Savings and Trust Co., an
nbunced that institution would
pay 3 per cent per annum on all
savings balances above $5.
Interest will be computed on
the low balance of each full
calendar quarter and will be
credited semi-annually.
Second National Bank will in
crease its rate on savings from
2 to 3 per cent on balances above
Sl00, President John A. Reilly
announced.
The Second National COM
putes interest on the low ball
ance for each six months in
tereSt period.
Directors declared a regular
quarterly dividend of 2 per cent
or Sf,a share and an extra divi-
dend Of 4 per cent, payable
December % to shareholders Of
record December 81. This is
the same as declared a year
ago and maintains an annual
rate of IL per cent as in other
recent years.
Most of the bankers expressed
regret that the competition
forced them to go to the higher
rate. Some felt. however, that
action was inevitable in view OF
the national trend.
Evening star., 1956-12-19
Street Sion Huzurd

SOUTH CHARLESTON, w.
Va. up. - The Safety Council
here Is considering putting long
er stands on all the city's street
signs Residents have complained
they are constantly humping
their heads on the signs.
Evening star., 1956-12-19
UnSeasOnal Weather Cuts
November Gas Sales

Unusually warm weather put
a cIimp in November sales Of
Washington Gas Light Co, but
sales for II months this year
were the highest on record for
the period
November sales OF 2s.993 sos
therms were 3.s per cent behind
Evening star., 1956-12-19
NRDGA Will Oppose
Higher Freight Rates

The National Retail Dry
Goods Association has served
notite it will oppose proposed
incrO Oases in freight rates Wig
oroutly when the Interstate
Commerce Commission holds
hearings.
Ina special Christmas bulletin
TO niembers. the NRDGA refer
red, TO the proposed % per
cent increase for Eastern and
Western carriers and Z per
cent increase in the South AS
abnormal" requests.
Evening star., 1956-12-19

SUBURBAN institutions, the Bank
Of Silver Spring and the Old Do
ihinjon Bank had acted
Directors of American Security
late yesterday voted to increase
the interest rate on savings ac-
counts. effective January /,
1t was announced by Daniel
w. Bell, president and board
chairman.
Effective on that date 3 per
cent will be paid on savings ac-
counts balances between IS and
$4,000 and at the rate of 2 per
cent on accounts in excess of
$4,000, computed on the low
balance in each full calendar
quarter.
The Federal Reserve Board in
a recent change in regulations
effective January /. permitted
member banks to increase the
interest rate paid on savings to
8 per cent a year. i
MI. Bell stated that in view of
tie Federal Reserve ruling. the
company's board of directors
took the action of increasing the
interest rate Ito give our savings
depositors a better return on
their savings and to increase
savings at American Security
and in the interest of thrift"
At present American Security
is paying 2 per cent on balances
up to $4,000 having increased
the rate from l per cent on Oc-
tober /, 1858.
Evening star., 1956-12-19
William Fox Promoted
At American Security


At the meeting yesterday,
American Security directors also
elected William A. Fox, assist
ant treasurer.
Mr. Fox has been with A. S. &
T. since l949 and at present is
in charge of the collateral loan
section of the installment loan
department.
He is native of Washing
ton and attended local schools
and George Washington Uni
versity. Before joining A. S. g.
T. he was manager of the Vet
erans Administration Credit
Union.
Evening star., 1956-12-19
. '2a', II BUSINESS
5Big D. c. Banks to Pay
Ict. Rote on Sovinos
BY DONALD B. HADLEY

Five large Washington banks today announced decisions
increase interest rates on savings to cent effective
1877 and more expected to take similar action shortly
American Security Trust Co, Riggs National Bank Union
trust Co. National Savings Trust Co and Second National
Bank took action Previously the National
Evening star., 1956-12-19

30,150,679 therms in November
last year.
Eleven months sales of 321,-
313,852 therms were up 1873 per
cent from 8.730,883 therms a
year earlier.
Evening star., 1956-12-19
MUTUAL FUNDS

NEW YORK. Dec. 10 lP,.-National
Association Securities Dealers, Inc,
Moon QuOtatiOnsD
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-08-21
Republican Wormup

The Republicans put on a calmly
confident performance in the first round
OF their convention in San Francisco.
Much in the fashion of boxer who ex-
poets to win easily on points, they threw
some def counter punches at the Demo-
Gratis last night but there was hardly an
effort at knockout swing all evening.
Even National Chairman Leonard Hall
looked benign and composed while flick
Ing his favorite foes, the Democrats, with
some light tauntS about what Estes Ke-
fauver had said about Adlai Stevenson
and Harry Truman had said about both
OF them. And solemn Senator Knowland,
who smiled only before he started and
after he finished speaking, went out of
his way to identify the only party Of
treason" as the Communist Party
against which both Republicans and
Democrats must stand shoulder to
shoulder For his part, keynoter Lang
lie, Governor of Washington, offered the
expected contrast to the free eating
evangelical Grafton of TenneSsee'S Gov
ernor Clement when last weeks Demo-
cratic convention got under way.
1t was peace and prosperity, perform
ance in keeping with promises, that
Mr.. Langlie found in the Republican
record last night. And if the reading of
1t were not overly dramatic, it was at
least reasonably persuasive in its re-
minder that costly and fruitlesS war"
had been ended and "the cruel trickery
OF initiation" abandoned as an accepted
instrument of policy Mr. Langlie paid
some attention, also, to one of the most
heavily attacked sectors in the Republic
can defenseS when he turned to the
history of the farm economy since World
War II. To keep history straight" he
recalled that farm prices had started
their decline Immediately after that war,
had revived only briefly during the
Korean conflict, and had resumed their
fall thereafter-all under Democratic
administration. The fact that prices
have been going up in these recent
months gave him grounds to promise the
farmers now parity generated by mar
kets, not battlef1elds."
On the attack, the Washington Gov
ernor dealt mostly and not at great
length with Democratic factionaliSm and
a twenty-year record that left the
country with "a staggering national debt,
q greatly reduced value of the dollar,
colossal bureaucracy and vastly increased
taxes" AS if in answer to Governor
Clements repeated question of How
long, America, how long?", Mr.. Langlie
obviously was proposing four more years.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-08-21

Probably no people in the world are
as responsive to advertising, in its many
highly developed forms, as Americans.
1t is not surprising, therefore, that adver-
tising appeals on behalf of national well
fare or public-service causes have won
impressive returns from the American
public-in dollars, time and all other
pertinent considerations. Safety cam
paigns, charity drives and disaster needs
are among the many and most notable
types OF solicitation that owe their sue
cess in such large measure to the effec-
tiveness Of advertising techniques.
Most of the credit for this achieve
ment is due the Advertising Council, a
nonprofit group supported by industry
and an branches Of the a Eertising bust
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-08-21
Investment Abroad

There is wide belief that one of the
most stabilizing influences in world econ
omy is the interchange of private
investment between countries. AS the
source of greatest investment capital, it is
logical that employment of American
funds abroad should provide the most
significant measurement of this inter-
change. In this respect, the record for
1855 is good one. For with the placing
of $2.4 billion in American ventures out
side our own country, our foreign holdings
reached an all-time high of $29 billion.
Two-thirdS of this 1855 investment
was poured into the establishment of
foreign offices and factories of American
firms-a development that tends to open
markets for American-made or owned
products. 1t was particularly gratifying,
too, that expansion of our direct invest
mentS was greatest percentagewise in
Latin American countries-an area that
too often has felt neglected by United
States capital.
There are, of course, risks to foreign
investment at time when the world is
troubled politically. Excessive caution,
however, can itself contribute to these
political troubles and there are returns
other than monetary in the willingness
of American capital to find employment
abroad.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-08-21
Truce in Cyprus?

There are signs that the long and
unhappy crisis over the political future
OF Cyprus may be taking a turn for the
better. With the initiative coming from
the EOKA, the nationalist underground,
an almost complete cessation of violence
directed in protest at British rule of the
Mediterranean island has prevailed for
almost week. In turn, British authori-
ties, although warily watching EOKA's
next move, have relaxed some of the
restrictions which were so CALLING to the
Greek Cypriot population.
Certainly the past five months of
terrorism and retaliation-the extreme
phase of violence which followed British
deportation of Archbishop Makarios last
March-has contributed nothing to Solu-
ton of the basic problem. EOKA has
proved it can destroy property and take
liveS-British, Cypriot and even AmeriA
can. The British authorities have proved
they can levy fines, make mass arrests
and even execute convicted terroriSts.
But neither of these participants-nor
the governments in London, Athens and
Ankara-has proved that destruction and
NNNNN AS"SAA6 OhSAo VI CNCH q
setting in which useful negotiations
might be resumed. In effect, EOKA's pro-
poSal-an offer to suspend its terrorist
activities to permit resumption of talks
which might lead to some mutually salts
factory formula for the political future
of the Islands recognition of this
fact.
If sustained, period Of nonviolence
might lead first of all to Makarios release
from exile-a step which would remove
one Of the bitterest grievances from the
Cypriot cause and restore to the ma
tionalistS their most authoritative voice.
1t was on the charge that the archbishop
was lending tacit, If not open, support
to terrorism that the British arrested and
deported him. There are, unfortunately,
enough difficult and complicated obstacles
in the way to finding solution accept
able to three governments and to the
divided Greek and Turkish native factions
in Cyprus. The substitution Of truce for
terror would at least clear the way to
tackle Undergraduates. q
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-08-21
Bond issue Veto

The letter written by an
AIM leader in Arlington, sup
porting the referendum giving
property owners veto power
over bond issues, is repugnant
to democracy-loying Arling-
tonians who do not believe in
government by a landed elite.
We have lived most Of our
married lives in Arlington. and
like many other citizens. lived
in an apartment for a few
years before our family began
to grow and we bought our
own home Should we have
been disenfranchised on bond
referenda which vitality af-
fected the schools and COM
munity ia which our children
are growing UP just because
we we're living In an apart
ment?
Then too. there is the matter
OF our senior citizens, some Of
whom move into apartments
when their children are grown
and a house becomes a phys
ical burden. Should they be-
come second class citizens
after their many years Of resi-
dence and interest in Arling-
ton County,
! have enough faith in Ar
lington citizens to feel sure
that this referendum will be
overwhelmingly defeated at
the polls In November.
Mrs. Ann Roe.