Evening Star Newspaper, April 11, 1929, Page 35

REDISCOUNT RATES CHANGES SHUNNED Danger Is Seen in Increase - "~ Soon as Relief for High Money. Rediscount rates in the Federal Re- serve System will remain as they are for many weeks and perhaps months. Suggestions that the rate be raised have been, temporarily. at, least, rejected by the board as well as the Reserve banks. Relief from the high money rates is expected to come from other directions than raising the rediscount rates. And the principal reason why the rediscount rates are to be held intact is the il efféct that might result to the export trade of the United States from any further fluctuation in rediscount rates. This determination means a period of inaction so far as initiative from Washington is concerned, but it does imply that the banking communities of the country will in the next few months have the opportunity to cut down the quantity of speculative credit and bring n;nney rates for business down gradu- ally. The Federal Reserve Board does not want to break the stock market down, impressions to the contrary notwith- standing. It realizes the danger of violent change. But what it does wish to see’ is a gradual liquidation, a slow but sure reduction of the amount of money used to support a highly speculative market. Expressions of Approval. In so far as theory is concerned, the interests outside of New ;flo::hguyb: nd signs, too, that the New York bank community is eo‘ontnun‘ tory, for the board itself didn’t -want money o reack; dangerous heights. Probe Talk Continues. Talz of an investigation continues, but the administration will urge con- gressional leaders to let the subject alone, lest the investigation rock the boat of an already delicate situation. The factor that has practically blocked action l&; the mment by Tte h}‘lluervc Bard is the export problem. been given only passing attention, but it is basic in importance. The recent s| of Gov. Roy Young of the Federa! Re- serve Board contained a pa: x was nt at the time wldely noticed, but lt expresses the underlying motives of the board in holding rediscount rates steady. “Nor is this problem a local on sald Mr. Young, “It is not alone of tional, but international significance. High rates have drawn credit and gold from many quarters of the globe to satisfy the appetite of the speculative borrower. Two foreign banks of issue have already had to: protect their own position. If this continues others, no doubt, will have to follow, and those countries will go through the ex of lifting rates around a circl they may get to a point where they not only will have a bad effect on the trade of ' the foreign™ countries, but would seriously interfere with the ex- ports of this country. It is needless mmmhfint it rates will not the borro Falling Tree Kills Boy. COLUMBIA, 8. C, April 11 (#),— Fred Matthews, 13, was fatally injured yesterday afternoon when a tree he was wlu'_hllll bein, im, crushing b dl.recfion the for me to go into details and remind | , you what will happen to our own peo- ple and our own industries if our ex- ports, particularly of agricultural prod- ucts, do not flow freely because of lack of credit or because of the cost of it. To put it baldly, the final cost may not be reckoned'in terms of interest charges alone, but may involve the impairment of the prosperity of our commerce and industry.” Since that speech was made in Cin- cinnati on March 17 there has been chqp fell on ' 'i':hdetraelellin- ehmben did not e: 5 before he had GREAT FALLS BRIDGE PERMIT 1S URGED District Engineer Finds Plans for Span Meritr His Approval. L TIssuance of & permit for construction of a bridge at Great Falls by the Great Falls Bridge Co. has just beem recom- mended to Maj. Gen. Edgar Jadwin, Pure Lard Bulk Only Nucoa Nut Margarine APRIL .11, 1929.. chief of Army Engineers, it was Jearned | na: yesterday by the office of Maj. Brehon Somervell, district engineer of the War Department for this area. Erection of this span across the Potomac River was made possible through recent legislation by Conlxeu will be a con- crete lreh structure, extending from just_below the water supply dam on the Maryland. side to. a point ,directly south of it on the Vi shore. The elevations en the bridge are sufficiently high so as not to hampz' the develop- ment of Great Falls, the U. S. Engineer office announced, and provision is made for any changes necessary for future ition ment at the falls, t to. ul certain of Government land In conjun Dmmd bridge, and this has granted by cOnrra-. CLOSING NOT OPPOSED. No Opposition Develops Over Shut-| ting Draw Bridges. A brief hearing, nients appeared, was held yesterday fore E. J. M k, neer of the Un“.efl Btafes engineer office | streams. 2 s 27e¢ A Spread for Bread—In all Cooking Evap. Milk . 3le et o 25¢ uymum &velop- for this area, on ths proponl of the with the approaches to the | draws in the bridges across Quaniitu been t which no upg:- Richmond, Fredericksburg & Potomac Railroad Co. to close, permanently the and Chopawamsic Creeks, in Virginia, E. M. Huunp. chief engineer for the carrier, and E. Date, engincer of maintenance ot ‘way, were the only wit- nesses heard, Testimony did not indi- cafe that there was any commerce now In existence at those points, and it was stated that the bridges have been built for about 40 years, and nct for several years have the draw spans been opcned. The fixed span will have a 10-foot clear- nce, the United States engineer offive said, to accommodate small craft on the White House Brand—Rich and Creamy Encore Macaroni 4 r-. 25e Also Spaghetti and Noodles, Flavorful and Nutritious Chum Salmon ¢« 14¢ From Alaskan Waters—A Regular Low Price ;bu{(\dnn: eE\;‘ldence‘ot, ht:; !t.l'let h:entrll b anks of Europe feel aboul pos- ing many expressions of approval.| iy o “hicher rediscount rates on ‘When it comes to application of a the- v, - | this side of the Atlantic. Fortunluly ory, there is a sharp difference of opin tiaiion Fhes baE ion, While sympathizing with the de- sire of the board to reduce the quantity of speculative dit, nobody wants to take the respons The Tesult that the board hopes will be accomplished may, however, come through a natural process—the reali- zation on the part of the speculative element itself that as values shrink the high money rates they pay for borrow- ing tend to wipe out the opportunities s = for profits—at least the risks grow ° - i sdiecy thet Sihi Taveibothe e s b e I Del Monte Peaches;.....2 buffet tins 15¢ Del Monte Peaches. . ...lge. can 23c Del Monte Pineapple........lge. can 25¢ Del Monte Asparagus Tips..picnic tin 17¢ Federal Reserve Board has been receiv: differentiate between the rediscount privilege for speculative and commer- cial uses, is beginning to appear less necessary every day. The response from the “common sense” of the country, as it* has been characterized, is growing constantly, The various elements in- volved are beginning to see the dangers of overspeculation. While business ac- tivity has continued splendidly in some | lines, the: noticeable reduction in build- ing and construction, due to high mon- ey rates, has caused enough concern to | . impress the large corporations with sur- plus funds that perhaps they ought not to assist in the support of a speculative | market. And the scarcer the money for speculative purposes becomes in the call money market the greater the tendency to reduce the speculative wave itself. There are signs of satisfaciion here at the way the money .market is .being ! One trial proves to any housewife the conven- ience, surety and quality of— FLAKO PIE CRUST Easy.to make Add water and bake Swans Down Cake Flour Makes the Best Cake You Can - lma.mHuM and Fine P Grained—Special Low Price kg. 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