Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-11-15

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lower interest rates, but it
reduction in the prime rate at N
they said.
When the prime rate also
goes down, a gradual adjust
ment in the entire interest
structure will begin, it was pre-
dicted.
Reaction to lower rediscount
rates was mixed. Some said 1t
was good news, but others re-
served opinions IN the light of
advancing operating costs and
higher interest paid for time
deposits. A general reduction
would trim bank earnings sub
stantially, it was said.
Any decline in customer rates
of individual banks would have
to come gradually, it was en-
phasized.
Approval of the lower rates !
was taken as an indication that
the Federal Reserve Board had
reached the conclusion that the
scales needed to be tipped
against deflationary rather
than inf1ationary forces.
Pointing out the boards duty
is to seek economic stability,
one banker commented, 1T
simply decided to lean against
the wind on the other side"
Securities dealers, who have
been, trading in a bearish mar
ket, were elated. particularly as
the market moved higher on
heavy volume. A backing OF
sticky issues were snapped by
institutional investors and in
dividuals at the opening. Rates
that didn't look good before,
now look very good. it was ex-
planned.
The grapevine from the
Treasury carried the news that
high Treasury officials regard
ed the Federal Reserve action
as being in the best interest OF
the country and a contribution
to orderly development OF the
economy.
Savings and loan association
executives said a few hardy
competitors. who raised rates
on share savings to 4 per cent
recently, may be tempted to
retrace their steps to 3H2 per
cent or 3 per cent in view OF
the new trend.
Loans Show Steady Drop
Here and in Other Cities
Bank loans have been declin-
ing steadily for several weeks
here and in other cities. The |
total for II Washington reserve
member banks declined for the |
fourth week in row during
the period ended November 6,
The total of 1881 ADJ 900 on
November 6 was off $l,325, 900
from a week earlier and only
$685., 900 above the like 1856
week.
Commercial loans on Novem-
her & amounted to 1925, 757 900, |
down S469, 900 in the week. but
$6.968, 900 above a year earlier.
Real estate loans of $751;, $780,
900 were up $l61 900 in the
week and $6,646,0 above a
year ago.
other loans of $1,000, 900
we're down $946,000 in the week
and $16,042. 900 behind the like
date last year.
Demand deposits Of $780,
100000 were up $23. 1913. 900 in
the week, but $29,612, 900 be-
hind a year ago. Time depos-
its of $278, 489 900 we're $780,
900 higher in the week and $685.
845,000 above a year earlier.
Bankers Are Cautioned
on Attenuation Problems
Bankers should not adopt |
automation until they have
studied their equipment needs
carefully and balanced costs |
against adva ntages to be !
gained, warned Eugene F. Case,
auditor of the National Met
ropolitan Bank, last night.
Speaking before the Auditors /
Section of the District Bankers
. Association at the Burlington
Hotel, Mr.. Case said each in
stitution should set its own
cost standards. No matter how
big. it cannot afford to pay 4
more for anything than it is
worth, he emphasized.
Another disadvantage Of au-
donation is loss of personal con-
tart with customers the Sneak- l