Evening Star Newspaper, May 11, 1924, Page 88

FINANCIAL McFadden Banking Bill Aims As Viewed by Its Advocates Salvation of National Banks and Preser- vation of Federal Reserve System Stressed—Review of Situation. BY 1. A. FLEMING. Salvation of the national banks of the country and the extension and preservation of the federal reserve system These are the real objects of the McFadden bill, emanating from the lanking and currency committee of the House, a few days ago. Repre- sentative McFadden, author of the Lill, is chairman of this committee and the measure is thus known throughout the country. It adopted it is believad that the amendments proposed will stop the shifting of charters of national in- stitutions to banks and trust companies—that is, of the larger na- ional banks, of the most im- portant having taken this action that ihey might have privileges denied under the national banking act, but permitted by state charters. No Immediate Danger. Not that there is any immediate Pprospect of such wholesale surrender of national hank charters as to prac- cally eliminate the system, but the threat was considered sufficiently <crious in this respect to justify the appearance of the controller of the urrency before the banking and currency mittee, where he acdross- pbers in suppors of the Mc- measure, pointing out the in- n state banks and trust com- and the decreuse in national cspecially among the larger and more important institut.ons, many hav- ng swrendered theis churters that they might better be prepared to do a roader business State banks and trust companies op- ate on much more liberal charters, heing permitted to engage in many op- erations that are denfed to national institutions, Anything that would destroy the na- tional banking system would be noth- ing less than a national calamity, for the federal reserve system is dependent upen and predicated on national bank- ing. 1t has frequently been pointed out that the tinancing of the world, war, 0 far s this country was concerned and practically of the allies as well, would have been next to impossible without it We might have been under the ne- cessity of using printing presses after the manner of Germany, probably not to the same extent, but instead of the imost stuble currency and a pros- perous ion, we would have had the reverse, nor could we have m the loans totaling wuny billions of dollurs to the allies xaible, But Unlawf: Ther « “don'i the n hanking act that tiay be evaded by Geating around th the chiefest these being ugainst branch the most potent in finan- state den are nanics in topics of dis ussion les of the vr tienal ban et directly nk with mar charter for the surac u oval banking 1a r the nut sa v anches, secure der the na- then may ¢ swith on ank it Ean Droposec objections of banking. void the ‘he sam. and dan o will o 0= b Banking. the Canad is very dir- Danking ws it has e United States. and “ry greatn the cnormous cap- the stitutions bran killed off tent that tonopoly same B an th have i comy ¢ great in- numerous 4 actually uch an ex banks have a Banks. 10.000 8500 of eir ition, great Pusin Numerous State tod There ar the Uniz are ope bunk act 1.000 trust One render of been the membir b with their tion, upon terest. Th the s about $1.43 regional bank r ban! mpanic the reason nation: that us reserve nsti ey receive no in- t availablc ement ystem rhows that 01 is reserved in the lutes an i deposit crease o dec per cent on do quired of national banl the state institutions and trust panies generally carrs their where they can and do rec est therec Doubt Wisdom of interest Charge. The McFadden measure does not provide interest on reserve the hest banking opinion is not fuvoruble t0 imposing this on the reserve sys- tem, but many member banks have recently argued for » lurger payment of dividends on the stock of the twelve regionai bunks than the G per cen now paid, the entire stock being subscribed by member banks. However, the federal reserve sys- tem is not' muking the money today that it did u year ago, two years ago or during and after the war, when they scored enormous profits General bu: ess is using less cash and the banks not finding such an active demand for loans are not re- discounting as freel, Rates t0o, are lowe, two yoars ago. n the past vear bills redisc docreased from $130.340,000 1o risd 185,000, indicating a siowing down in seneral business and a large decrease in_the activities of Wall street. { Reserve banks employ their assets as best they can. even if they are obliged to go into the open market and buy low rate paper. A recent statement. the holdings of certifi- cates of indebtedness thows an in- crease in one vear of $24,000,000 and | of Treasury notes by $120,000,000 while the kind of puper desired by the system. was not availuble so that there was a decreaze of $150,000,000 in this item. Bankers Back the WcFadden Bill, Bankers of the country as well as in the cities are behind the McFad- den bill in great numbers, eviden: ing their satisfaction with the privi eges of the reserve «vstem and their desire to further anything that will id it. Representatives have had their ears to the ground, or rather they have read their mail. and they know sen- timent perfectly, practically assur- ing the passage of the measure in the House, What the Senate may do when the bill is sent up is another matter. At a recent meeting of the execu- tive council of the American Bank- ers’ Association, a motion to give in- dorsement to the proposed legisla- tion, eliminating the branch bank section, was promptly tabled follow- ing a point of order in a motion to approve of the entire measure. In convention last fall the Ameri- can Bankers' Association declared itself against branch bankirg. Cog- nizant of this action, the committee on branch banking felt itself in duty bhound to report to the council ad- versely, but the council was appar- ently 70 per cent in favor of the measure, and rejected the report. Debate was cut off on the motion to approve in toto, but sentiment scemed to indicate a reversal of views at the next annual association convention. ! There are sixtcen amendments to the mational banking act, proposed in the McFadden measure, as re- while com- arve ive inter- r than they were | ness, {turn in lmiting their extension ported by the banking and finance committee of the House. with corre- sponding changes in the reserve act. Speaking recently before an audi- ence of bankers in support and ex- planation of his bill, Representative McFadden had this to say: “We have tried to modernize the act so that members of the banking fraternity can do things they are not now permitted to do but are doing by way of subterfuge. “We have provided for the consoli- dation directly of state banks and national banks. Heretofore possible only in a roundabount way. “Also for indeterminate rights which will permit national banks to have the right to act in fiduciary capacity, and for long time trusts. A year ago the House did pass a bill giving perpetual rights, but the ninety-nine-year charter rights still prevail. “We have also provided in this bill that national banks, the same as business concerns, have the right to increase their capital by stock dividonds. They have had to do this in a roundabout way. ‘Then we have clarified section 5200 of the revised statutes as to loans, etc. Seme Dificulties Overcome. “We have ironed out sbme of the difficulties in regard to cotton loa: We have broadened this to give relief to the southern banks, if needed “We have solved that which many banks have been calling for. the question of certification of checks. The law provides that all the entries in & man's account must be complete before you can certify a check. We provide now that so Jong_as the money is in the bank the officer has a pertect right to certity. “We have provided, again in re- sponse to a strong demand. that banks can own stock to a limited extent in safety deposit companies. Get rid of swme responsibility and better organize the safety deposit business. Also that where bank esaminers g0 wrong through violations of the law, action can_be brought against them in United States courts. “There has been a pretty general demand dor amendment in the sec- tion relating to real cstate loans. The demand has come particularly from Ohio and other central states for an increase in the loan limit to 60 per cent of the value of the properts. We have left that as it is now in the law, which permits loans of 50 per cent and one-third of the time deposits or 50 per cent of the capital and surplus as the bank may desire. charter | But we permit loans on such prop- erty for a period of five years up to a 30 per cent value of the property Problem of Branch Banking. he vexatious problem of branch banking has been pending before, the committee for ten years, but no sat- cfactory solution has ever been pos- sible up to this time. We feel now that we have a recommendation on this subject wherein we arrive at a proper basis of dealing with 1t. “\We realize that under the particu- | authority of the laws of many that branch banking has gone ¢ leps and bounds. Those en- gaged in it insist that it has been in response to a public demand and the necessity of the situation brought about the development “In New York this branch banking tarted by one. the other banks if they wanted to Liold their business. The idea of branch banking started in New York, was rapidly followed by others, and in California they entered into state- wide branch banking. A few states do permit tht “In the legislation which we have recommended we have tried to deal fairly with this situation. The great majority of the committee is opposed to branch banking. In this bill, how- ever. we have, I think, successfully distinguished between the branch bank, which the banks and bankers generally are opposed to. by restrict- ing it to within the limits of the home city Comment on Restrictions. We recognize that in cities. if con fined there. it not the kind o branch banking that the people of the country are feartul of. “The kind they are afraid of is the possibility of x Wall sireet control with branches throughout the whole country. “By the distinction which we have made in the recommendation now pending, we beleive that when a char- ter is given to a bank to do business in a certain state that that bank has |a right to do business in that state, and if because of the growth of busi through thrift, ete, that bank is not able to take care of all the business it has a right to expect, it may 2dd additional branches within the limits of the city where it is lo- cated. “We have drawn the lina distinctly and confined it to city limits—voted positively agianst county-wide or state-wide or nation-wide branch banking. and also against expanding it to contiguous territors. “I believe that the limits we have nlaced will meet the situation fairly. We have prevented unlimited bank- ing in cities of 1,000,000 population or over, recognizing because some cities were 5o situated and the busi- ness being scattered that in cities under 1,000,000 they were entitled to some consideration. “We provide that in cities of 50,000 to 100,000 one bank may have two branches, and between 25,000 and 50,- 000 one branch onl “I am of the opinion that we have done the banks of California a good o the confines of their cities. Revisc District Code. The banking and currency commit- tee will, after the coming recess, con- sider a revision of the banking code of the District. In Mr. McFadden's opinion “there is every reason for revision. that an understandable code may be provided.” Investigations Injurious to Business. Members of the executive commit- tee and officers in attendance at the recent meeting at Augusta, Ga., were almost unanimously of the opinion that the senatoriul investigations had exerted 4 harmful effect on general business. Only one official—President Head of Omaha—expressed th&opposite views. RAW SUGAR MARKET QUIET. NEW YORK, May 10.—No changes were noted in the local raw sugar market today, spot Cuban remaining at 5.90, duty pald. There was a sale of 7,000 bags Philippine to an outport refiner about due at 5.84, while a local operator bought 7,000 bags Cu- ban for second half May shipment at Raw sugar futures were quiet and featureless, closing net unchanged after an openjng decline of 1 to 3 points; ~ May closed 4.22, July, 4.31; September. 4.36; December, 4.03. Not much business was reported in mnegd u‘:s;:.o Whl;!sto was also un- nged at 7.40 to 7.50 for fi - ulated. b Refined futures were nominal. e Highest Aerial Trolley. The Caracoles Tin Company of Bo- livia will construct an aerial trolley 6 miles long and rising 3,700 feet. At its highest point it will be 16,000 feet above sea level and will be the highest trolley of ifs kind in the world. Wayne Graham and Byron Riblet of Spokane are the engineers doing the work. - There are more than 37.000.000 ac light tive cotton spindles in textile mills in [ pigs, ughs, 6.50a7.00, the United States. WASHINGTON, D. C. MAY 11, 1924 _PART 6. FACTORS PROMINENT |Changes in Stations of IN A FICKLE MARKET Series of Sharp Price Cuts and Other Unusual Features in Yesterday's Trading. Special Diepatch to The Saar. NEW YORK, May 10.—A scries of sharp price cuts in the oil trade occu- pied attention in Wall street today to the exclusion of almost everything else. Lowering of crude oil quotations oc- curred simultaneously in midcontinent and in the Pennsylvania districts, and in the case of the former it was un- usually sharp. On no singie occasion while the oil market was going down a year ago was there any such drastic cut in the midcontinent territory as the twenty-five-cents-a-barre! reduction an- nounced today. That the stock market was quite un- prepared for the nows was Shown by the overnight drop of 1% to 3 points in the ofl trade. But as a matter of fact the ofl trade statistics for some time have foreshadowed this action. Figures on crude oil production have been showing a slow but steady increase, while gasoline supplies on hand, as computed on April 1, were the largest on record. Those best informed had been saying that these conditions called for a downward revision in prices But the public had been led astray by the optimistic _statements from prominent oil men. of which some appeared as late as Friday and were printed in the pa- pers this morning. Outside the oil_group tho losses were not as severe. Still among the indus- trials they were very general, and fre- quently reached a point or more. e g n BALTIMORE PRODUCE. BALTIMORE. Md.. May 10 (Special). —The general live poultry market has ruled easier the past week., and while demand has been fairly good prices have had a downward tendency on most lines and mostly in_buyers favor. Spring chickens one and a half pounds and over continue to be the best sellers, but stock must be of first quality to com- mand top quotations of 45 to 50 a pound and 40 to 45 for emaller. Small fowl are not desirable, and shipments of this sort are not advisable, as they only tend to depreciate the value of the better stock. Leghorn springers will not bring over 35 to 45. while young stags are slow sale at 25. Choice winter chickens continue in good demand at 40 to 45. with receipts of this sort generally light. Old hens are in more liberal receipt, and with demand easing off the market closed easy at 27 and 28 for medium to large and 25 for leghorns. Old roost- ers also in ample supply at 16 and 17. Receipts of old ducks continue to show poor condition, with consequent slow sale at 20 to 25 a pound. Some inquiry is noted for young duck. but unless fat and weighing upward of three pounds apiece shipments are not advisable Pigeons and guinea fowl are in fair de- mand and lighter supply, with market holding firm at 40 to 50 a pair for the former and 40 to 60 each for the latter. The egg market has a firmer tone, and with demand keeping pace with receipts Iy arrivals have been kept closely cleaned up, and the market closed a Shade higher at 23 cents a dozen for rictly fresh native and nearby stock in free cases. IgEs sold in cases re- turned averaged b to 1 cent per dozen had to be met by all| less. Prompt shipments are advisable | to command top quotations. and buyers are critical and all held stock has to Le sold at a discount. | “The white potato | steady but receipts continue with demand for all grades ; satisfied and centered on No. 1 stock i to 1.75_per 100 pounds and | 0 for No. 2's which are slow 'ngraded potatoes are hard to | sharp discounts while | Culls are not wanted Season for | sweets and yams drawing to a close and shipments of anything but bushel | haskets not advisable as trade will not buy barrel stock. No. 1 stock. sweets and vams, sell_mostly 400 a bushel and 1.50 to 2:00 for No. 2's as to quality and condition | "%ative and nearby garden truck in better demand owing to arrival of more vegetables and the market gen- erally holds firm at the following | quotations: _Asparagus. 5.50 to 5.00 | dozen. and 200 to 3.00 2 beets, 5.00 to 10.00 hundred; cabbug: 200 and 3.00 basket; carTots, 4.00 to 00 hundred: kale, to 35 bushel nions, 50 to 1.50 per hundred pounds |and 100 to 1.25 per hundred for Spring onions; radishes, 2.50 to 3.5 per hundred. Rhubarb, 2.00 to 5.50 Nundred, and spinach 50 to 75 bushel | MUApples are in ample supply und movement only fair at lower values 7t 115 to 450 a barrel for packed ctock and 50 to 1.25 per bushel R | LIVE STOCK MARKETS. | BALTIMORE, Md. Mav 10 (Spe- cial)—With the exception of beef cat- which is in only fair demand, the Jive cattle market rules steady to |firm on most lines. Demand, how- | ever, is centered on the better grades | of cattle and all under grade moves | Slow at the lower values quoted. De- mand active for fat spring lamb of | desirable weight, 40 to & D(Ju!!d:‘. \With receipts of this sort light. Cat- {le, arriving on the wharves, are mostly common to ordinary stock. which has to be sold at a discount !from the following quotations at | Light street wharf today. | “Beef cattle—First gquality, b, $ad; medium, 1b., bulls, as to quality, Ib., 4a6; cows, choice to fancy, Ib., 4 |a512: common to fair, 1b., Z‘Tl‘: oxen, as 1o quality, Ib., 4%a6%; milch cows, choice to fancy, head, 50.00a75.00; common to fair, head, 30.00250.00. Calves—Veal, choice, Ib., 10%; ordi- nary to medium, lb. 9a10; rough, heavy, common, 1b., 6a8. Sheep -Choice, 1b, 7a8; old bucks, 1b., 5a6; common, Ib. 3a4: lambs. fall, choice, 1b., 15a1p; fair to good, 1b. 12a14; common, thin, Ib., 9a10; spring, choice, 1b., 18. Hogs—Straight, 1b., 7a8; sows, 1b, 5a6; stags and boars, b, 3a4; live Digs, as to size and quality, 1b., 10a12; shoats, as to size and quality, 1b, 8a9. CHICAGO, May 10. (United States Bepartment of Agriculture).—Cattle —Receipts, 1,000 head; compared with & week ago, beeg steers 25 to 40 low- er: better grades showing most de: cline; yearlings steady to 25 lower; extreme top matured steers, 125 best yearlings, 11.50; better grades fat cows and heifers strong: lower grades fat cows and canners and cut- ters dull, weak to 25 lower: bulls, 10 to 15 off; vealers, 1.00a1.25 highe: stockers and feeders strong to 25 up: week's bulk prices follow: Beefl steers and_ yearlings, 850210.7 stockers and feeders, 6.75a8.50; fat cows and heifers, 6.25a8.50; canners and cutters, 2.25a8. veal calves, 8.2529.50. Sheep—Receipts, 5,000 head: re- ceipts practically all’ direct, market nominally steady; for week, around 24,000; direct; 180 cars, fed lots; com- pared week ago, fat lambs around steady; week's top wool skinned, 17.36; practical top clippers, 15: fat sheep around 50 higher: spots up more: bulk prices follow: Fat lambs, 16.50a17.25; clipper kind, 14.50a15.30; springers, 16.00a18.00; clipped weth- ers, 9.00a9.25; clipped, 7.50a8.50. Hogs—Receipts, 6,000 head; uneven, owing to heavy hold-over; mostly 10 lower than Friday's average; spots show more decline; bulk desirable weighty butchers, 7.40a7.50; top, 7.60; bulk better grades, 160 to 225 pound weight, 7.25a7.50; packing sows, largely 6.75a6.90: bulk desirables: strong-weight killing pigs, 6.00a6.50; estimates holdover, 5,000 head; heavy- weight hogs, 7.35a7.60; medium, 7.30 a7.50; light, 7.00a7.50; light light, 6.00 a7.30; packing sows, smooth. '6.80a 6.95; packing sows, rough, 6.6026.80; slaughter pigs, 5.5025.60, NEW YORK, May 10.—Cattle receipts. 790 head; steady; steers, 6.50a11.65; state culls, 2.75a5.50; cows, 1.75a5.25. Calves—Receipts, none. Barely steady; veals, 12.50a13.00; culls and little calves, 4.00a5.00; buttermilks and fed calves, 8.50a5.50. Sheep and Lambs—Receipts, 1,810 head: steady. Sheep, 4.50a7.25: culls, 3.00a4.00; lambs, 9.00a17.35; culls, 8.00 a10.00. Hogs—Receipts to medium 7.30a7.40; heav market | even at eights. 8. .30; y hogs, 7.50a7.80: | 2.00 to | | | ment at Army and Navy Officers Of Interest to Capital ARMY. The following named officers have been detailed as military instructors: Maj. E. 1. Small, 12th Infantry; Capt. W. B. Dunwoody, 83rd Field Artillery; Lieut. Col. G. H. Scott, Medical Corps; Capt. W. H. Crosson, Corps of Engi- neers, and Capt. Frank Lackhead, in- fantry, with the Pennsylvania Na- tional ‘Guard; Capt. F. U. McCoskrie, infantry, and Capt. W. A. Swift, 2nd Infantry, with the Wisconsin National Guard, and Capt. J. M. Stewart, 7th Infantry, with the North Dakota Na- tional Guard. Lieut. Cols. E. T. Donneliy and C.| F. Cox, Field Artiilerv, at the War Department, and Lieut. Col. M. A. Delaney, Medical Corps, attending sur- geon in ‘this city, have been ordered to Fort Sill, Okla., for duty. Lieut. 'Col. W. H. Peck, Field Ar- tillery, has been transferred from Fort Leavenworth, Kan., to Honolulu, Hawall; First Lieut. H. S. Kenyon, jr., Alr Service, from this_city to 'San Francisco; Maj. M. C. Shallenberger, Infantry, ' from this city to Kort McPherson, Ga.; Col. T. B. Hacker, Quartermaster Corps, from this city to Baltimore, Md.; Maj. C. D. Hartman, Quartermaster Corps, from this city to Fort Myer, Va, and Maj. C. W. McClure, Quartermaster Corps, from Fort Jay, N. Y., to this city. The following named officers have been detailed as military instructors: Lieut. Col. N. P. Wiley, Infantry, at the University of Delaware at Newark: Capt. H. B. Vaughan, jr. Corps of Engineers at the University of Illinois at_Urbana; Capt. A. J. Powell, 30th Infantry, at Creighton University, Omaha. Neb.; Second Lieut. L. W. Boyd, 38th Infantry, at the public high schools, Nashville, Tenn.; and Capt. T. G. Poland, 28th Infantry, with the North Dakota National Guard at Devils Lake. Capt. J. H. Rodman, 4th Infantry, at Lehigh University, Bethlehem, Pa. Maj. H. R. Odell, field artillery, at the Oregon Agricultural College. at Corvallis; Maj. G. C. Lawrason, infan- try, at the University of Tennessee, Knoxville; Capt. W. McK. Spann, in- tantry, with the Louisiana National Guard, at_Monroe, and Lieut. Col. Clenard McLaughiin, infantry, at Pensylvania State College. The President has accepted the resignations of First Lieut. Thomas M. McLamore, infantry, and Second Lieut. Harry I« Sheets, infantry. Officers on duty in this city have been ordered to other stations as fol- lows: Maj. Thomas Whelen, Ordnance Department, to Fort Benning, Ga.; Capt. 1. O. Gladdish, Veterinary Corps, to Fort Bliss, Tex.; Maj. J. W. N. Schulz, Corps of Engineers, to Du- luth, Minn. . Officers ordered to this city for duty are Maj. R. R. Nix, Ordpance De- partment; Maj. R. L. Maxwell, Ord- nance Department; Maj. J. E. Bastion, Medical Corps, and Maj. ¥. X. Strong, Medical Corps, all at Fort leaven- worth, Kan. i Maj. W. G. Kilner, air service at Bolling Field, Anacostia, has been assigned to duty in the office of the chief of air servico, War Department. Maj. T. J. J. Christian, 7th Field Artillery, stationed at Madison Bar- racks, N. Y. been assigned duty at Baltimore. He is under treat- Walter Reed General Hos- pital, this city. Maj. J. G. Quekemever, cavalry, for- mer aid to Gen. Pershing. has been relieved from duty’ as a student at the general staff school at Leavenworth, Kan.. granted leave of absence, on the conclusion of which he will report to the chief of staff, rtment, for duty - W R rut John T. Schaeider, field has been reliaved from duty rvard University, Cambrids Ma nd ordered to duty with Gen 1. 1. Vershing. chief of staffl, War Department. irst_Lieut. N. D. Gillet. infantry he Virginia Polytechnic Institute has been assigned to the 65th Infantry at San Juan. P. R First Sergt. William J. Fenwick, at Fort Myer, Va., and First Sergt. Win- ter Washington, 9th Cavalry at Fort Riley, Kan., have been retired on ac- count of age. Col. H. I at Blacksburg, Va. Knight. infantry, Majs 0. . Aleshire, general staff: J. A Crane, field artillery, and W. E. R Covell. Corps of Engineers, and Capt W. A. Woodhuff. adjutant general have been appointed a board to meet in this city and select candidates for appointment as second lieutenants in the Regular Army Maj. 1. G. Moore, Dental C been transferred from this Fort Benning. Ga. Capi. Heavy, Corps of Engineers Louisville, Ky.. to Fort v Capt. E_ A. Allen, from Camp Alfred Vail, neral Hos rps, has city to W from ignal Corps. X J., to Wal- this city: dical Corps this city to Carlisle. Pa.: Capt Henry, Medical Corps, from this to Fort Sam Houston, Tex.; Capt Kinberger, Medical Corps, from this city to New York city; Capt. B J. Peters. Medical Corps. from to Fairfield, Ohio; Maj. L B mbers, Coast Artillery Corps. from city to Los Angeles, Calif.; Maj Brabson, field artillery, from to Fort Sill, Okla. and Capts. W. B. Bradford and Charles Wharton. cavalry. France, to Fort Riley, Kan. Col. M. C. Smith, cavalry, has been relieved from duty with the War De- partment general staff and ordered to Fort Thomas, Ky. for duty with organized reserves. NAVY. Johnson, J. R this cit Capt., T. L. the Naval War tailed as naval attache at Paris, France, and Madrid, Spain. and Capt Ralph E. Pope, commanding the An- tares, has been assigned to duty in the office of the assistant secretary of the Nav Communder John Downes has been transferred from the Naval Academ to command of submarine division 1I; Commander G. H. Baum, from Great Lakes, 111, to the Naval War College; Commander S. A. Taffinder, from the Naval Academy to the Peruvian mis- n: Commander J. S. Woods, from val Academy to command of the Farguhar; Lieut Hiester Hoogewerff, from San Fran- cisco to the Naval Academy: Lieut. H. B. Curles, from the Navy Depart- ment to the Pittsburgh; Lieut. E. _E Mullen, from Tutuila, Samoa, to San Francisco; Lieuts. J. G. McPherson and C. H. Liqued, Construction Corps, from the Massachusetts Institute of Technology to the Navy Department. Chief Pharmacist Stephen W. Doug- lass, at the Naval Academy, has been ordered to the Washington navy yard, 2nd Chief Pharmacist Robert Martin, at the Washington yard, has been ordered to the navy yard, Norfolk. The resignation of Lieut. Leonard L. Martin, Dental Corps, at the ma- Tine barracks, Parris Island, S. C., has ccepted. i Pt B A, Long has been assigned to the command of the Antares, Capt. W. K. Wortman to command of de- stroyer squadron 9, Commander R. A. Koch to command the Rappahannook, Lieut. G. B. Brewster to command the Gormorant, Lieut. D. B. McClary to command the Tanager and Lieut. W. J. Peland to command the Whip- L. p‘;}::fl ‘Commanders C. L. Best. E. H. Connor, G. B. Hoey, J. A. Murphy, R, E. Rogers, . L. Vanderkloot and W. C Wickham have been ordered to ation e A ander A. L. Bristol has been transferred from the Naval War Col- lege to the scouting, fleet; Commander W. G. Child, from Garden City, N. Y., to the Langley; Commander I. J. Marquart, from the Navy Department o the Naval War College; Comman- ' D. Puleston, from the scouting fleet to the Army Wwar College, this city: Iqeut. Commander H. H. Forgus, from the Naval Academy to the Nevada; Lieut. Commander Cleveland MecCauley, from the Naval Academy to the Mississippi; Lieut. Commander J. D. Moore, from the Naval Academy to the Idaho; Lieut. Commander E. W. Strother, from Quincy, Mass, to the Naval War College; Lieut. M. W. Cal- lahan, from the Naval Academy to the Henderson; Lieut. §. K. Hall, from the Henderson to the Naval Academy: Lieut. S, H. Hurt, from the Naval Academy to the Reuben James: Lieut. P B Thompson, from the Reuben James to the radio station, Annapolis, Md.: Lieut. W. D. Chace, Supply-Corps, from New York city to Annapolis. Lieut. Commander Lewis Hancock, Lieuts. A. R. Houghton, C. E. Bauch and Roland G. Mayer, Construction Corps, and Chief Machinist S. S, Halli- burton have been transferred from the naval alr station, Fort | 'The Year 1924 to Date on the Washington Stocl: Exc}nange. Farnished by W. B. Hibbs & Co., Hibbs Blég. Up to and including Saturday, May 10. F. | amphreys, | this | from Saumur. | llege. Newport, has been de- ! Commander | Many Factors in Appraisal Of Outlook for Investments Course of Commondity Prices Held of Im- portance—High-Grade Securities and Current Charge for Money Interlaced. BY GEORGE T. HUGHES. 1 Dispatch to The Star. SW YORK, May 10.—Any ap- praisal of the investment outlook must take into account many factors. As far as high grade investment securities are concerned, such as government bonds and first mortgage rails and industrials, the important consideration is the current charge for money. As interest rates deeline the rule is that bonds advance. Thero are, however, other important considerations. One is the course of commodity prices, and another is the status of the business cycle. Now what is the sitwation at present? In the first place, money is cheap and the trend scems to be toward lower charges. This week, for instance, banks were offering funds for ninety days at 4 per cent, and asking only 4% per cent for longer periods. This is a decline of approximately % of 1 per cent since last weck. No Advance in Commodities. Commodity prices are certainly not any higher,” and here, too, the out- look is for a lower rather than a higher level. Gold continues to pour into the country. The reserve ratio of the combined federal reserve banks is at the highest level since the world war. There has been a moderate reaction in business. Just how much it is difficult to say. At | any rate the supply of funds for com- mercial purposes is greater than the demand. Theso fundamentals admitted, it is mot surprising that this week's market for purely investment securities has been firm (o strong. Going a step further, it i pertinent to inquire how long this condition will Jast. No exact answer in the nature of the case can be given. Close watch must be kept on all the factors aiready enumerated. Especially important among these are general business conditions. It is interesting to recall in this conuection that Col. Ayres, the Cleveland economist, has pointed out that in every major cycle since 1882 the high point of the bond market was reached fourteen months after the low point of pig iron produc- tion. Now, as everv one knows. the pig iron market is greatly depressed. Blast Farnaces Close Down. During April there was a net loss of from thirty-five to forty furnaces in blast. This is th Tost severe drop since March, 1921, when fifty-two stack were lost altogether. Pig iron out- put showed & drop of 4 per cent in April over March. Whether production and, consequently, prices are now dragging on the bot 1 1= a4 matter of opinion. ex 46.300—Pot 6,000 A and Pot. River R. 000—C. and P. Tel 1st 5 5500 —&apital Traction Ist £.000—City and Sub 34.000—Georgetown Gas 10.000—Metropolitan R E 00—Pot. Elec. Power 1st 5s.. 000—Fot. Elec. Power c ) 00—Pot. Elec. Power deb, BONDS. Tel. of Va. Power fs, sh., Balt. and Annap. st 58 s Light gen 1 and Elec. con: 127,800—Wash s " 16,000 Fot. Elec. Power rel. 7s . Dist. of Col. Paper Mfg. €s.. 16.000—Riggs Realty (long) =h. Market Cild Stora 00—Wardman Fark 6s.. 3 15.500—Southern Building 6%s.. STOCKS. apital Traction 2— Washington Gas ... 0—N. and W. Steamboat.... sh. Ry. and c. com. Wash . and Elec. pfd.. 1.000—Wash., Alex. and Mt. Ver. 0—Columbia National Bank 42t—Commercial National Bank 94—District National Bank ... 10—Lincoln Nationa Bank... —National Bank 1—National Riggs 5 econd 126—Amer. 167—Continental 8 Metropolitan Bank National Bank...... tional Bank. rity and Trust Trust 141—Union Trust ....... ~Wash. Loan and Trust Merchants' Bank and Trust —Bank of Com. and Sav Washington Mechanics’ iremen’s Fire Insurance —National Columbia Title Real Estate Tnsurance Title Insurance e s of Washington National Savings and Trust.. Union Fire Insurance.... .. 41—Merchants’ Trans. and Storage —Mergenthaler Linotype . 439—Lanston Monotype 13—Security Storage Company.... 383—Washington Market .... 5,803—National Mort. and Invest. pfd. ... Ceesc A s In one respect the present situation differs from that in other industrial re- actions. Supplies in the hands of con- sumers are unusually low. Probably at no other time has there been such con sistent hand-to-mouth buying. All this points to the possibility of a sudden change for the better, and improvement in pig iron, as experience teaches, is the basis for general industrial recovery. Turning to the actual investment situation at present, many observers affirm that prices are already high. Liberty bonds, save only the tax-ex- empt 3%s, are selling above par. It is no longer profitable for the Brit- ish government to buy our govern- ment bonds for the purpose of tender- ing them at par in payment of the interest on the British war debt to the United States Employing Surplus Fands. Instead. i has been buying by banks and institutions in need of employment for surplus funds that has put the Liberty bond market up to its present level. To say, however, that there is no possibility of still higher prices is a mistake. The long- est term active government issue is the Treasury 4%s, non-redeemable before 1947. These made a new high record of 102 the day after the New York Federal Reserve Bank cut its rediscount rate from 4% to 4 per cent. Since that time, there has been some reaction. Nevertheless, to re- duce the yield basis to 4 per cent, which is not excessively low for a United States government bond un- der present conditions, these Treas- ury 4%s would have to sell at 104.14. The case is even stronger for high- grade bonds and preferred stocks Many of these are now selling below the highs reached earlier this yeur, to say nothing of a year ago. This iy true of the two most highly regmvd- | ed railroud preferred issues on the stock exchange list. Atchison ppre- ferred and Union Pacific pretersed Both these purely investment isgues are selling not alone below fheir high records of 1923, but of 1924 also. Market Good for New Offerdrigs. Whatever may be the lonssrange outlook, it cannot be denied that the market for new offerings is il better shape than in a long whil(. This was demonstrated this week. by the reception given to the new Florida Western and Northern Rai'froad is- spe. This was & construction loan for the purpose of building a mew rail- road across Florida, the mew road to be leased to the Seaboard Air Line. The high coupon rate had a good deal to do with the: success of the offering. but the rerm arkable im- provement in earning pmwer shown by the Seaboard Air Lime and con- fidence in the possibilitios of Florida were likewise involved. It all augurs well for the vast amount of new rail- road financing still to- come. A e Ee DRY GOODS AT WEEK END. NHAW YORK, May 10.—Cotton_goods were steadler at the week end. Buyers continued to show more interest in gray cloths, with mills reluctant sellers at current prices, Curtailment con- tinued to increase. Yarns were firm- er, but the demand showed little change. A large rug auction opens Monday at which $5,000,000 worth of goods showed little change. Raw_silk merchandise will be oflered. Wool was slightly firmer. Silks were in mod- erate demand. Burlaps were firmer. Money Sicured by first deed of tmst off real estate. | Prevailing interest and commission. Joseph 1. Weller 2 Wasb. L. Wilkins Bldg. 151214 H St. 5 - Room Suite ivate Corridor and Toilet Light and sunshine—high, qulet—above the noise—in the very center of Washing- ton's busy financial center. FOR PARTICULARS APPLY Randall H. Hagner & Co. 1207 Conn. Ave. Phome Main 9700 Money to Loan At 6 and 617 Interest , Before Placing or Resewing Tou Ist or 2nd_Trust Consult WELCH, Realtor Loan Specialist 15th and New York Ave. —has organized a credit branch whereby investors can secure our First Mortgage securitics on a partial payment plan. A wonderful opportunity for government employes to ac- cumulate a substantial assey with their monthly savings and receive /0 Send for Fuil Particulars Chas. D. Sager Loan Dept. 924 14th—M. 36 FIRST MORTGAGES | FOR SALE THE TYPE OF SECURilY CONSERVATIVE | VESTORS BUY IN DENOMINATIONS TQ SUIT PURCHASERS JAMES F. SHEA 643 Louisiana Ave. N.W SN Ty We Loan Money on Apartment Houses, Office Bulldings, Hotels, Sez Us About That Big Loan Higbie & Richardson, Inc. Improved H. L. Rust 912 15th Street N.W. Applications Invited for Loans on In District of Columbia and Chevy Chase. Md. INTEREST, 5% Apply to Loan Correspondent The Prudential Insurance Company of America £ Continental Trust Company Capital One Million Dollars I4th & H Streets Property Company Main 6888 Ozwer a good Quarter g of a Centuy Withot a Lo UNLISTED DEPARTMENT. 1—Departmental Bank 150—Standard National 24—District_Title Insurance. 10—Chapin-Sacks $s pfd.... 5—Chapin-Sacks 7s pfd........ 190—Washington Base Bail Club. 24—Washington Title Insurance 5—Franklin National Bank..... T, to the Shenandoah, and Lieuts. R. J. Miller and R. F. Tyler, from the Shenandoah to the Lakehust air sta- ion Marine Corps Col. L. H. Moses has_been trans- ferred from the Army War College, this city, to the navy yard, Boston: Col. J. T. Myers, from San Francisco to San Diego, Calif.; Maj. N, A. East- man, from Newport to the battle fleet; Maj. A. J. White, from Quan- tico. 'Va., to Parris Island, S. C.;: Capt. H. Hardy, from this city to Quantic Capt. O.'P. Smith, from the Texas to this city: t Lieut. W. J. Whal- ing, from Parris Island to Quantic Capt. A. Kingston, from Quantico to Norfolk; Capt. C. Grimm, from the Seattle 'to Quantico; Maj. R. B. Farquharson from the battle fleet to, Quantico; First Lieut. H. B. Enyart, from Quantico to Pearl Harbor, ami the following from San Francisco § b Quantico: Capts. C. H. Martin, R. 1L, West, B. A. Bone and M. Kearney and First Lieuts. J. K. Martenstein, W. L. Harding, F. E. Stack, L. B. Reagaa, G. A. Plambeck, R. Skinner and R. R. Robinson. The following named officers have been assigmed to duty with the ist Marine Brigade in Haiti: Maj. W, S Harrison, Capt. E. E. Eller, Flirst Lieuts. C. W. Meigs, C. D. Baylis amd T. Mck, Schuler and Second Liemt. E. H. Price. Officers ordered to the 2d Marine Brigade in San Domlsgo are Capt. G. B. Reynfwids, Hirst Lieuts. C. Connette and E. O. K frk- patrick and Second Lieuts. W. H. Lee and D. D. Spangler. e e BANS COPPER EXPORT'. France Issues Decree Forbidding Shipments From Country. NEW YORK. May 10.—According to the terms of a ministerial decree dated March 25, the export out of Franre of 25, copper and even its re-exportatiom: from bonded twarehouses or in transit is strictly prohibited. The Bankers' Trust Company &f New York is advised by its French informa- tion service that this decree applies also to all debris of copper or alloys contain- ing a percentage of copper. such a: chavings, dust, etc, and also to residues from chemical processas wh Lakehurst, N.|mght contain a trace of cOpper., 947% 40 20 4% 10 30 3 s s .. 144 144 144 144 e COFFEE AT HIGHER MARK. £.dvance Stimulated in Part by Covering Operations. NEW YORK, May 10.—Coffee futures ‘wers higher today on covering and buying which appeared to be for Euro- pean account, probably promoted by steadier Brazilian cables. The market opened 5 to 7 i higher and advanced to 15,02 for De. cember. the close showing a net advance of 18 to 21 points. Sales were estimated at 17,000 bags. Closing quotations: Muy. 13.60: July, 13.03; September, 5; October, 12.24; December, 12.00; March, 11.70. Spot coffee, steady : Rio 7s. 145 to 15: | Santos 45, 18% to 191;. No fresh offers were reported in the cost and freight market. Rio exchange on London, 3-32d higher. Dollar buying rate, 130 reis | lower. Brazilian port rcceipts, 42,000 bags; January receipts, 22,000. $3,182,000 CALL TUESDAY. NEW YORK, May 10.—Federal Re- | serve Bank of New York will call $3,182.000 from member institutions in this district next Tuesday. This will comprise 5 per cent of the bal- ance remaining from the March 15 balance. The report that the Federal Re- serve Board has decided that bank acceptances offered by the German Gold Rediscount Bank are eligible for rediscount by the reserve banks could not be sustained here. The news at the same time was regarded as authentic. New York officials said they had not received word one way or the other from Washington. NEW YORK DAIRY MARKET. 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