Evening Star Newspaper, July 30, 1922, Page 22

ton report next week. Dr were Yirmer with keen interes in the preliminary openings. week. riaps “and_ linen quiet. Silks had a slow and gsin’ in demand. COTTON GOODS MARKET. I NEW YORK, July 28.—Cotton goods and yarn markets were steady. and quiet today, trade being very light in anticipation of a government cot- ~ Jameson-Built Homes First Time Offered 1026 to 1058 - 24 [VARIOUS - CONSIDERATIONS gteady Comment’ Anent Developments of the Past Week—Change in Merchandise Methods. Holding Deposits—O1d-Time Theories. frequently not at BY L A. FLEMING. With rumors of purchases and sales of banks and efforts for a merger resulting in nil during the :-l'r credit line: As far back as March and Asrfl the changed method of merchi is- ing. from then on to an Indefinite time, just as indefinite today as it : GOVERNING BANK MERGERS:: Easy Mémey, Too And another result—money on call 83 per cent and time money 3% to 4% per cent, with a sufficient demand for government four-year “‘1"’" cent motes and all certificates lssued by the Treasury to make them sell at a premium. The ease in the money market, largely the result of this chang method of merchandising, has never been so prolonged. and is driving bonds to toppy levels and forcing banks to' greatly increase their in- vestments. i Therein has been oné.of the great- est sources of profits banks.have e joyed during the present year, ‘the premium on bonds purchased, thou- re places in this city whe 2 hanTine | LIBERTY BONDS AT A GLANCE. o efforts of the Dromotor, | 7 4 tority o —a921 3" e Close 4 - Do, - 5 3 Date. + ow, A Tow' Yesterdsy. Triendship with's Jead ng. clitisen or | Liberty 3%s 61547 " %650 8600 10116 9484 10095 34l two prevails on others to ‘invest in a bank, not one bit of the money com- ing through friendship for the. pro- moter, and. then takes & rich fee for organizing a bank, which he nevér could have put over but for the fact that the best people in the neighbor- hood had used their influence. Banks have been forred in this city with all kinds of-inducements to pfo- fonal promoters, and the Milis- paugh bill will, it hoped, prevent some banks from starting. Southern Bullding Dividend. Directors of the Southern Bullding Company have declared $1.50 a share dividend on the preferred stock and 50 ¢ents a share on the common stock. That Big Mortgage. The big mortgage on the Walker Liberty 1st 4%s. Liberty 2d 4% | Liberty 3d m’ Liberty 4th 4%s. Victory 4¥s ... g . 5-20-23 Victory 43s (called).. 12- * *Closing bid. 15-2 . Bales. ¢ 10136 410 100.10 9586 10088 376 10046 349 The Year 1922 to Date on the Washingzon Stock Exchange. Up to and inclnding Friday, July 28, 1922. Furnished by W. B. Hibbs & Co., Hibbs Building. North of- Spring Road Six large rooms, H.-W.- H.,, elec. lights; double floors, tile bath, servants’ toilet, wash trays; double rear porches. Built-in garage. Price Less Than $8,000 FOR SALE BY os. A. Jameson 906 New York Ave. NW.. Main 5526 Owner and Builder Ask the Man Who Owns One 3 past week, the question constantly discussed by bankers invariably cen- ters around the possidility of a buy- [ing bank holding the deposits of the purchased institution. Therein liea the problem for bank- ers with ideas for assimilation in their minds. Time was when it might have been possible for a bank to have held probably 90 per cent of the deposits | of another institution for a time at least, provided the two institutions were reasonably close as to location. It would be difficult for a 7th street bank to hold the deposits of a 15th ctreet institution to anything like 90 per cont. Indeed after a short time umn. and was then, was discussed in_this col- its full effect on the mon market of the immediate and distan\ future® predicted in a way tlué has been fully realized to date and will be continued along the same lines during all of 1922 and probably for a much longer period. 7 \ New Methods. Attention was called at that time to the fact that merchants, retail and wholgpale, and jobbers and manufac- urers as well, had passed through the toughest period in their history; that they had been busy for months and months lquidating old stecks, manu- facturers and jobbers cuttirg .down their inventories #s best “théy ‘could through price concessions.and retajl- " | being earned from baon. sandg and tens of thousands of gains liberty issues and from corporate bonds, carrying with them'the most abgolute insurance to safety and income. To return to the possibilities of sale and bank mergers. Many have been attempted; & few have gone across in safety. It is a good half mile from the Merchants’ Bank and Trust Com- pany to the American Natjonal Bank. This was: one great handicap in_the negotiations, aithough {t may not have been discussed In.the least. Then again the American has a fine bank building which must be = sidered in any negotiation for a sale or merger. 1t is in a good location. a good bujlding and possibly might have been sold.to advantage. | Hotel property—$4,200,000—is to be followed by an issue of $2,000,000 pre- ferred stock, which will be offered on the local market. If the stock is sold there will be no second trust-on the hotel property, otherwise the it would be difficult to retain a fair share of the business. This 90 per cent basis is an esti- mate féunded on the old method of ers working overtime in working ‘off old goods at the best prices possible. The lessons then learned, taught by sad experience and learned by poorer but wiser men, had been =0 thorough-. But the ideal acquisition and the one to which efforts will probably be directed in the future is where the acquired bank or institution may be doing business, a method that has taken itself out of the money market as_a factor of today. Time was when depositors were borrowers to a very large extent and arrangement had to be perfected for a new credit line before bank accounts were shifted. Moreover. the feeling that long-time business relations with a bank was in the nature of a credit mark irrespe of Dun or Bradstreet and it was a | hard matter to move a bank account, unless the depositor was peeved or dissatisfied at something Today the depositor is not. per se. | a borrower, rarely to the extent of ly acquired that nevermore, until the scars had healed and been for- gotten, would the retaller carry two stocks’ on his shelves; nevermore would the jobber extend his stocks and credit lines to bursting., nor would manufacturers stand for swol- lén inventories and credits at the same time. The result—manufacturers, jobbers and retailers keeping pact with the demand' for goods and not exceeding it: merchants making many trips to market for replenishments, and thereby saving on insurance and in- terest—while the bankers wonder used a branch of the parent stitution. Too bad that there is no synonym for the word “branch,” which seems to be averse to the views of some authorities. But branch banking is going on in the United States at reat rate today, and the downtown institution, handicapped to parking regula- tions and with a widely distributéd clientele, should be ready on the moment to make a merger that will give it Jocation desirable or the rental of a desirable place wherc a hranch ‘may be put ogga sound basis. Harns By FISK .. Standard Non-Skid Tires ~ 30x3!5 Premier CL. Fabric . . . . . . . .. $10.65 " 30x3'4 Fisk Non-Skid Cl. Fabric (Oversize . $12.85 30x3% Red Top Extra Ply CI. Fabric (Oversize) . $15.85 - 30x3', Non-Skid CL. Cord (Six-Ply Oversize) . $15.85 31x4 S.S. Non-SkidCord . . . . . 32x4S.S.Non-Skid Cord . . .- . . 32x4% S. S. Non-Skid Cord . . . . "34x41% S. S. Non-Skid Cord . . . . 33x5S.S.Non-SkidCord . . . . . 35x58S.S. Non-SkidCord . . . . . Other Sizes Proportionate These Prices Include Excise Tax and Are . Built to Sustain a Reputation —Sold to Meet Competition From Your Dealer Effective July 31 $26.45 $29.15 $31.70 $46.95 $39.50 1$49.30 S JOSEPH SCHIAVONE, President of Internationsl Exchange Bank. $750,000 second . trust . notes will be oftered It was generally understood that the first mortgage bonds would not be offered here, aithough some of the circulars have found their way into local institutions. Personal Mention. John Joy Edson, chairman of the | beard of directors of the Washington | Loan and Trust Company, is nearing California, having undertaken the trip a few days ago. The veteran banker looked forward to deriving | much pleasure from the trip, which many of his younger cotemporaries might have dreaded The delegates to the annual con- vention of the American Institute of Banking, held two weeks ago at Portland, Ore. are expected back in Washington with Monday morning. An Anniversary. One of Washington's _youngest banks will celebrate fts first anni versary with August 1. One year 380 initial deposits were $7.000 The year has brought Mr. Schiavone in contact with other bankers, his banking methods have been approved and _his_application for ociate membership in the Washington Clear- ing House favorably acted on by the committee which delved into the bank's business and methods amd gave it their O. K. The International Exchange Bank is a member of the District of Co- lumbia Bankers' Association, of the Chamber of Commerce and the Amer- ican Bankers' Association. At the end of the first year the deposits total more than $300,000. largely - savings accounts, with very tew checking. Mr. Schiavone is a graduate lawyer, has been a large operator on foreign | exchange through his bank and has 2 large following among friends in nearby states. The bank also operates a steamship sgency. represesting all lines, this department being in charge of Al- frea C. Machler. formerly connected with the North German Llovd The past week was attended with | more or less dullness in the local se- curity market. While there was no actual weakness, it looked very much as if the street was Wwaiting to see what would turn up. The much talked of sale of 27.500! shares of Railway common seems to e D s it SITICE SPACE The E'tlinmonds | Building 911 15th St. N.W. Washington’s Newest Office Building Harry Wardman 1430 K ST. N.W. Main 4190 Electric Lights Hot-water Heat tiful homes. 923 15th “Distinctive Homes” - —that will completely fulfill every expectation. Read these details— 6 Large Light Rooms Complete Tile Bath’ Instantancous Hot-water Heater ¥ Concrete Front and Rear Porches Large Yard—Room for Garage Attractive Colonial Type Home A home you will be proud ta:own Located* —within a_féw blocks of Lincoln Park on Kentucky Avenue. Corner of C Street Southeast. /Wil be open for inspection all day Sunday Avail 'yourself ‘of this’ opportunity to'see these beau-. i Reasonable terms-can })e arranged. Chas. D. Sager Main 36 BONDS. $2,200—Ana. and Pot. River R. R. §s. 1.200—C. and P. Tel. of Va. 5s... . 3,000—C. and P. Telphone 1st 5s. 176,000—Capital Traction 1st .5 14,00 ty and Suburban Ry. 2,500—Georgetown Gas Light 1st 5s. 12,000—Metropolitan R. R. 1st 5s. 22,000—Pot., Elec. Power 1st 5 125,000—Pot. Eleéc. Power cons. 5s.. 56,500—Pot. Elec. Power deb. 6s. 234,400—Pot. Elec. Power gen. 6s. SR #3.000—Wash., Balt and Annap. 1st 5s 132,600—Wash. Gas Light gen. . 247,500—Wash. Ry. and Elec. cons. 4s. 74.500—Wash. Ry. and Elec.:gen. 6s 71,400—Wash. Gas T%s .. 116,600—P. E. P. gen. mort. 7s... 10,000—Riggs Realty (long) b 1,000—Riggs Realty (short .100—Wash. Market Cold STOCKS. . Tel. and Tel. 6,001—Capital Traction 3,001—Washington Gas i 52—N. and W. Steamboat. .. 5,387—Wash. Ry. and ‘Elec. com. 4,168—Wash. Ry. and Elec. pfd 169—Commercial Nat. Bank 6E—A’Jllv.flct National Bank o torage 5: Riggs Nationil Bank. 18—Second National Bank .. 370—Amer. Sec. and Trust 323—Continental Trust 4 126—National Savings and Trust. 49—Union Trust e bl e i ‘Wash. Loan_and Trust. 0—Merchants® Bank ......... remen’s Fire Insurance.. L 46—Xat e Real Estate Title Insurance Dist. of Col. Paper Mfg. pfd... Mergenthaler Linotype . 253—O0ld Dutch Market com 215—O0ld Dutch Market pfd. 2,761—Lanston Monotype 150—Washington Market have turned down, at least it has not turned up. It will be interesting to see if the market has the stamina to hold at around present prices for Railway common. The preferred stock, Capital Trac- tion, all bond issues, Lanston and Mergenthaler shares and even Rail- way common are said to be possessed of sufficient inherent strength to pace the market to higher figures. Probably the next demand that holders of Utilities notes make will be for a distribution of the stock of the railway company, that they may have something of tangible value Business Is Good. There is no question but what bus- iness would be very much better in all lines 1f the strikes were ended Everything is reported in splendid shape and the crops promise excel- lent returns . « Collections Better. | A junior banking official, comment- ing on the changed merchandising methods of the day, made this state- ment: ! “Merchants are not selling bills of g00ds to be paid for in sixty, ninety | to 120 days—that is, except the regu- | lar _instaliment houses. { “Time was when partial payments | might be made with practically .any large department store. This is ended. - Moreover, the practice of! holding aloof on collections from month to month is over. ! “The merchant expects his bills to i be paid monthly, and credit stops; when payment is not made.” NEW YORK BANK STATEMENT NEW YORK, July 23.—The actual condition of the clearing house banks | and trust companies for the week | shows that they hold $39,623,500 in excess of legal requirements. This’ is a decrease of $4,257.220 from last week. The statement follow; Actual condition Loans. discounts. etc., $4.643.694,000; increase. $32.943.000 Cash_in own vaults, members Fed- | eral Reserve Bank, $56.536,000; de- crease, $528,000 Reserve in Federal Reserve Bank | of member banks, $553,759,000, de- | crease, $5,250,000. Reserve in own vaults. state banks { and trust companies, $7.130,000; in- | crease. $115,000 1 Reserve in depositaries. state banks | and trust companies, $10.045.000; de- | crease, $156.000 ! Net demand deposits, $3.957.580,000 decrease $17,740,000: United States deposits reduced, $25.790. Time deposits. $497.900,000; in-| crease, $40.776,000. i Circulation, ~$33,735,000; incresse, $35,000. Aggregate reserve, $570.934,000. { Excess reserve, $39.623,560; de-! crease, $4.257.220. - ! Swmmary of state banks and trust! ¢o §ianies in Greater New, York, mot | in l‘rled in the clearing house state- meat: Loans, discounts, etc., $748.470.600; increase, $111.300. Gold, $5.584,200; increase, $3,000 Currency gnd bank notes, $17,604.- 700; decrease, $273.900. Deposits with reserve banks of New York, $65,050,500; increase, $1,588,700 Total deposits, §785,789,000; de- crease, $4.176.300. ' Totai deposits, eliminating amounts due from reserve depositaries and other banks and trust companies in New York and United States: Deposits, ~ §746.970.50 increase, 9,900, ke’ cash in vaults, $11,237.200. Trust companies’ cash in vaults, $11,951.700. st. N.W. A Open. High. Low. Clos 3 .80 £9% 80 873 91 9 90 91 95 STRIKE CONTINUES TO WORRY MARKE Unsettled Conditions Aaa: Show Influence and Brin® Irregular Trading. NEW YORK, July 23 —Out ing developments of the week financial and industrial markete | little doubt that all other cons: ations were being made secondary the coal and railroad strikes Pr in the stock market were irregu! the weakness of the first few d being followed by a recovery. fiu week end prices ;lur:‘ more the higher levels Rail shares, several of which ma new highs for tne vear, led the June earnings, with few excep were regarded as highly encour. ing, while latest available figures carioadings of revenue freight inu cated that the shopmen’s strike b not greatly affected car movement Reports Show Improvement. Quarterly reports of the Unit. States and Bethlehem Steel corpo ations reflected marked bettermer in the leading lines of manufacture Steel common earned the better par of the dividend in contrast fo the previous quarter when not all of the preferred dividend was earned The general business situation ot !viously has been retarded by stri conditions, but leading authoritias b lieve that conditions have not vel become alarming enough to serious- ly threaten an early resumption of the industrian revival America mercantile authorities reported ac tual curtailment of pgoduction dus mainly to slackening of de Monetary conditiong wer changed from the previous week s in that the rate for call showed an easier tone of time funds were o small because of the unc vailing in the commodity markets Anxiety Over Foreign Situation The foreign situation was agal the cause of much anxiety as denoted b the extreme demoralization of German marks. German money has sunk to level where it practical ceases to have any value as a mediu of exchange and- the Austrian rate almost has reached the vanishing point. Bankers in touch with European conditions see no hope of immediate improvement in foreign affairs Pri- vate advices from London and Paris stated that no change from the pres ent critical situation was likely pending a definite understanding be tween the heads of the British ar French governments GRAIN AND PROVISIONS CHICAGO, July 29 —Talk of settle- ment in the railroad strike and ab- sence of outside interest led to dowr- turns today in the price of wheat At the finish wheat was down % 10 1 cent, with September 1.07% to 1 and December 1.10 to 1.10%: corn de- Clined % to 1% cents: oats were un- changed to 1, and provisions 23 o 15_cents higher. Toade in wheat was light and the tone weak. Absence of outside inter- est and the call for a peace meeting among the chairmen of the shop crafts in Chicago, foilowing the pro- posal of President Harding in an ef- fort to end the walkout, were the principal factors. Almost all the ac- tion in the wheat trade occurred dur- ing the last thirty minutes, the fluctu- ations before that time being co fined to a marrow range. but moder- ate selling by hedgers and local longs caused a break of more than a ce in a few minutes’ time. A big eas ern house picked up wheat. and rally ensued to the early high point. but a little reaction toward the finis! carried the prices down. Receipts Wheat here were 400 cars, and del: eries on July contracts were 310,0 bushels. Trading in coarse grains was dull prices being weak with wheat. Rains over the corn belt, where much need- ed, and the forecast for more mois ture over® Sunday was a depressing factor in th ecorn market. Provisions were strong, in line with higher hog values NEW YORK. July Spot steady: No. 1 northern 1.54%; No. 2 red winter, 1.2933; No. : hard winter, 1.31%; No. 1 Manitoba, 1.53%, and No. 2 mixed durum, 1.29%;. cif. track New York, spot Corn—Spot steady: No. and No. 2 white, 84%. mixed, 83%. cif. N Oats—Spot quie 5 ite, Firm; middle west, 12003 23 —Wheat— pring Lard—] 2.10. 2 Other articles unchanged. COTTONSEED OIL REPORT. NEW YORK, July 29.—Cottonserd higher despite retenders of 1,300 barrels on August contracts owing to the firm showing in lard and covering for over the week end August closed 11 points higher, and the balance 2 to 6 net. higher. Sales, 5,200 barrels. Prime crude, nominsl ellow, 30; D 8.32 1 spot.