Evening Star Newspaper, June 13, 1929, Page 33

HIGH MONEY RATE | SLONS UP TRADE Bankers Estimate It Will Take $500,000,000 New Credit to Handle Needs of Country. i BY DAVID LAWRENCE. CHICAGO, June 13.—Investigation of the sentiment of bankers and business men toward recent developments in the Federal Reserve policy leads to the con- clusion that, while business has not as yet suffered perceptibly from high money rates, there is a_psychological anticipation of a slowing up of trade. of an intended expansion of ake care of seasonal require- the end of the month have not yet been accepted here as forecast- ing a trend, though it is estimated by some conservative bankers that it will take $500,000,000 of new credit to han- dle the needs of the country, and it is assumed that purchases of bankers’ ac- ceptances will have to increase rapidly to_permit such credit expansion. ‘The characteristic fact about the Chi- cago situation is that the principal bankers reveal themselves as more or less bewildered. Some of them unhesi- tatingly criticize the Federal Reserve authorities for forcing the rediscount rate down too far originally and argue ! that the system of direct pressure re- | cently applied is causing no end of irri- | tation between them and their cus- tomers and a loss of business and BOUdl will, I Condemn Collateral Loans. Almost unanimous condemnation is heard of speculative excesses, but the argument given by Washington against collateral loans is bitterly assailed as unsound and academic, especially as it 18 pointed out that commercial loans for three years have been decreasing wnile the security loans have developed an entirely new demand on banks. In the last few weeks country banks have been compelled to increase their bor- rowings while their deposits have gradu- ally dropped. There is evidence that even the larger city banks are trying to use Chicago as a transfer point for some of the loans which the regional reserve banks are trying to make them liquidate. This shopping for credit on the part of many banks, especially in going outside their reserve bank dis- tricts and asking accommodation from banks from which they have never ‘barrowed. is creating its own embarrass- ment. To refuse accommodation car- ries its penalties. And yet the big city banks are being offered bank indorse- ments for this paper plus the security loans and llaneous signatures. One of asked what he thought abouj eral Reserve policy asked first for & definition of “policy.” He insisted that when the Federal Reserve advisory council went to Washington it came back without & clear idea of the pur- poses of the Federal Reserve Board and that it could hardly be expected that member banks would know any more. High Money Holds' Issues. Investment bankers have on their shelves millions of dollars of good bond issues which they dare not float in the high money market. Commercial bankers say that business men are find- ing no difficulty in borrowing money for commercial purposes, thoygh they are paying & minimum of 5% per cent for it. They apparently do not object to paying that rate, though they are ac- customed to 4% and even less, but they are so glad to be accommodated in what they have been led to believe is a tight money market that they absorb the in- creased expense ungrudgingly. ‘The one curious effect of the high money rates, however, is to make more difficult the business of- those who have to sell to the farmer. The country banks are not carrying as much farm ;per used in purchasing icultural iplements. They have had their funds e_mfloyed directly or indirectly in-the i money market. 8o one of the large implement firms is itself carrying larger volumes than ever before of farm paper, :ult the resistance is interfering with les. Everybody seems agreed that the fluc~ tuating call money market has been an unsteadying influence and one banker suggested that the cure would never be found for the present situation until the New York call money market was abol- ished altogether. He said that try as they would to reduce the bill rate or regulate the rediscount rate the real basis of money in America today was the call money market. Many Remedies Offered. Opinions differ as to the remedy for the high money rates. Some bankers still feel that a sharp increase in the re- discount rate a few weeks ago would have brought the stock market to a sudden collapse and that the surgical operation would have been short, pain- ful, though effective, but most bankers are inclined to think that a rise in re- discount rate would hardly be of much value now. They are therefore re- signed to a 5 per cent rate, though they think a continuance of unsettled condi- tions is bound in the end to hurt for- eign, as well as domestic business. Altogether, business seems to be standing up well in the second quarter, though few business men will hazard a guess about what the third quarter will show. Lack of personal contact be- tween Washington and the banking world is evident here as elsewhere. The bankers have serious problems ‘which are worrying them constantly and feel that the FPederal Reserve authorities have been rather un- sympathetic or at least have not striven sufficiently to understand the subject from anybody else's point of view. The Federal Wbserve banks may be in- teresting channels of distribution for Federal Reserve Board mechanism, but any policies that require persuasion, it is suggested, will have to come from the board itself, notwithstanding its disinclination to assume a central bank attitude in a supposedly de- centralized system. {Copyright, LINEN SUITS $16-50 Open a charge accoumt EISEMAN'S, 7th & F EGZEMA ON CHILD'S HEAD In Little Pimples. Healed by Cuticura. “Ecgema broke out in little pim- ples and when my boy scratched them they would fester and Jook like water blisters. The eczems was on his head and between his shoul-| ders. It seemed to be worse between | his shoulders and before I knew it be had a sore eruption from scratch- ing. He was fretful and lost his applications he could rest better. I continued using them and in a short time he was bealed.” (Signed) Mrs. George Palmer, R. 1, Box 56, Charleston, Me. Use Cuticura to heal skin troubles. Eleven Remarkable Values in Furniture $10.75 Fibre Rockers $6.75 In buff or baronial fin- ish, upholstered in bright- ly colored cretonnes. $33 Breakfast Suites $20 Five-piece suites—drop- leaf table and four chairs finished in a combination of gray and red. $66 Breakfast Suites 25 8 in all; 2 in green and tan combination; 6 in two shades of red combina- tion. Drop leaf table and four chairs. $29.75 Tea Wagons $19.75 A splendid gift for ‘a bride. Wagons with en- closed sides and separate glass tray; mahogany fin- ish. b < ® $235 Dining Room Suites 169 Ten-piece walnut din- . ing room suites—66-inch buffet, oblong table, en- closed server, china cabi- net and set of chairs. $25 Bed Outfits - $19.75 Consists of 2-inch post- er bed in brown or. ivory finish; sagless springs and cotton mattress. Single or double size. $26 Dressers $19.75 21 odd dressers—just the thing for the cottage; 6 are white enamel; 15 gray oak. $23 Chests of Drawers 10 Utility chests of draw- ers fitted for the bath- room. White or ivory fin- ish. $6.50 End Tables $3.85 Solid mahogany top ta- bles with book trough combinations, finished in dark brown mahogany. $25 Serving Tables *5 12 enclosed serving ta- bles from suites that have been discontinued. Wal- nut finish. $200 Living Room Suites - 145 Two-piece living room suites in plain taupe mo- hair with reversible s, cushions, THE EVENING STAR, WASHINGTON, D. €, THURSDAY JUNE 13, 1929. W, B. Moses & Soms SINCE 1861—SIXTY-EIGHT YEARS OF PUBLIC CONFIDENCE 9 AM. to 6 P.M. New Linen and Felt Hats _$7.5o First to present the Irish linen hat. Crush- able and light in weight, it may be ordered to match the costume, and is ideal for sports. A huge col- lection of new felts in the desired colors and head sizes. Hat Section, Pirst Floor. F Street at Eleventh Two-Day Sale of $5 to $10 Handbags $ 4.35 Over 200 bags—fine calfskin, goat, grain leather, patent leather, suede, silk and many imported novelties. All nicely lined, fitted with mirrors and inside purse. Back and side strap. Have You Seen the New Belts? All the newest belts—narrow, wide or medium —in suede, snake, morocco, patent and strap leather. 50c, 75¢, $1, $1.50 and $1.75. Leather Goods Section, Pirst Floor. Two-Day Sale of Toilet Goods Because in Some Instances There Are Limited Quantities, We Can Not Accept Mail, Phone or C.O.D. Orders—Shop Early Tomorrow 25c Mennen's Men’s Talcum Powder..........15¢ 50c Pepsodent Tooth Paste ... ..29¢c 25¢ Kolynos Tooth Paste . .19¢c 50c Pebeco Tooth Paste. .. ..3lc 50c Forhan’s Tooth Paste ..34c 25¢ Listerine Tooth Paste.. JA8C 35¢ Mennen’s Shaving Cream in29e 35¢ Williams’ Shaving Cream... s 29c 50c Mulsified Cocoanut Oil Shampoo. 5996 50c Palmolive Shampoo . +:39¢c 50c Krasney Luxor Ba*t Powder 29c $1.50 Angelus Lemon _ream. 35¢c Ponds Vanishing Cream.. 65c Ponds Vanishing Cream $1 Ponds Vanishing Cream. 35¢c Ponds Cold Cream.. 65c Ponds Cold Cream.. 60c Pinaud’s Eau de Quinine . 45c Lablanche Face Powder 50c Iodent Tooth Paste Helena Rubinstein’s Toilet Preparations Cleansing and Massage, 75c up Pasteurized Cream, $1, $2, $3.50 ‘Water Lily Cleansing Cream Blackhead and Open Pore Paste $1 and $2 Skin Toning Lotion, 7 $1.25 and $2.50 each ... Authosoros Cream, $1.75, $3.50 Compacts. . Compacts from $1to$3 o Save Tomorrow On These Popular Summer Rugs Crex de Luxe, Kimlark and Rattania Rugs Reduced (Discontinued Patterns) - Size Regularly Special 4Yyx7/, Feet $7.50 and $9.75 $5.95 This size rug is ideal for the porch Summer Rug Section, Fourth Floor. A Gift for the Bride Fine Hamadan Mats ( Average Size, 2x3 Feet) Regularly Special $15 and §20 '7‘13 Oriental Rug Salon, Fourth Floor. De Luxe Sheets and Cases Reduced Tomorrow These special prices are in effect tomorrow only on our well-known De Luxe brand of sheets and pillow cases. Sheets, 81x108, tomorrow Sheets, 72x108, tomorrow Sheets, 81x99 inches, tomorrow . . Sheets, 63x99 inches, tomorrow Pillowcases, 45x36 inches . . ‘The Linen Shop, Pirst Floor. Kathleen Mary Quinlan’s ¢ Toilet Preparations Cleansing Oil, $1, $2 and $3.50 Skin Food...... Special Texture Violet Astringent...$1 and $2 Skin Stimulant..75c and $1.50 Bath Powder and Salts, $1,50 and $1.75 Eye Cream and Eye Drapss. $1, $2 and $2.50 Tollet Goods Section, First Floor. ..$1.50 and §3 , | $1 Ponds Cold Cream.......... 00 00 SR A 10c Sayman’s Soap 25¢ Mavis Talcum Powder. $1 Ambre Royal Face Powder. $5 Lery’s Perfume .. $2.50 Lery’s Perfume $3.50 Melba Perfume $1 Cutex Sets 60c Cutex Sets ............ 60c Pompeian Massage Cream 60c Pompeian Night Cream. 60c Pompeian Day Cream. 60c Pompeian Face Powder 60c Dagget and Ramsdell Cold Crea: 35c Dagget and Ramsdell Cold Cream 10c Palmolive Soap 15c Sweet Jasmin Talcum Powder 25c Peroxide 35¢ Cutex Liquid Nail Polish. 35¢ Cutex Cuticle Remover. Dorothy Gray’s Toilet Preparations Cleansing Cream, $1, $1.75 up $2.25 Special Mixture. . ;32.25. $4.50 Sunburn Cream . o SR $2 Face Powder ....... Bath Powder Bath Salts .... Try These Allen-A One’s hosiery must always be in accord with one’s costume— so for morning or sports wear we sug- gest these $1 Allen- A Stockings. . They are of pure silk chiffon—silk to the top— and semi-fashioned. All the popular Summer shades in sizes 84 to 10. Every woran should have several pairs. Ask for Style No. 3697. Hoslery Section, First Floor. Chamoisette Gloves Special 8 5 C Tomorrow These novelty cuff chamoisette gloves come in good styles and several shades of beige, gray, navy and black. Sizes 6 to 8, but not in each style. g Glove Section, Firat Fipor. Morning Frocks $ 1 95 Pretty frocks of broadcloth in rose, green, blue or orchid, with white collars and short sleeves. Sizes 34 to 40. Home Frock Section, Becond Foor. gy 9795 Y Plain or in striped effects, as sketched—gray and red, tanm, yellow and brown or dark and light blue and tan. With Vee necklines. Sweater Mection, Second Fieor. Main 3770 This is the open season for Cotton and Linen Dresses $10.75 $ 39.75 Handkerchief Linen Dotted Swiss Pique, Organdie Embroidered Voile Sizes Twice as important as they've been for \ .seasons pa s t—and twenty times as smart. W Dozens and dozens of adorable youthful models—each one a discovery in chic. You'll love their cool- ness when warm days arrive—so be prepared and choose now, while we have a new and varied collection to show you. The Apparel Shop Second Floor ! 50 Spring Dresses Smartly Reduced e 310 Opportunity Shop .. Were $14.95 Georgettes and crepes in tan, red, navy and black. One and two piece models. Printed crepes in popular patterns. - Ensembles with full-length coats and short jackets. All are good styles. Sizes 14 to 44 The Opportunity Shop—Second Floor. Gi_rls’ Wash Dresses $1.75 $2.65 Regularly $1.95 Regularly $2.95 For vacation time get that smart little print tomor- row. Plain and printed broadcloth, plain piques. Short sleeves and sleeveless models. Round and Vee necks. With and without collars. Attractively trimmed with contrasting materials and dainty touches of embroidery. Sizes 7 to 14 years. ‘The Girls' Shop, Second Floor Voile or Linen Dresses $2.95 Cool and dainty for Summer wear. The voile frocks are in prints with white collars and ruffles; short sleeves or sleeveless. The linen frocks are plain or printed, with collars and cuffs of contrasting shades and short sleeves. Home FProck Section, Second Floor Fine Silk Underwear Was $3.50 p $2.95 Chemise, dance sets, bloomers and gowns of crepe de chine trimmed with footing, margot lace, ruffies of i‘orgmc or hand embroidery. Peach, rose, nile and esh. Truly remarkable values. Pajamas $9.50 Pajamas Of cool, natural-cclor 2-piece - sleeveless styles pongee, trimmed with ap- of black crepe de chine plique. trimmed with colors. @ik Underwear Section, Second Floo: