Evening Star Newspaper, October 14, 1930, Page 13

FINA BANKS BENEFITTED BY RESERVE RULING Board, Amends Regulation s iav Governing Computation of Required Reserves. BY EDWARD C. STONE. ‘The Federal Reserve Board announces & very important amendment to its regulations, which now permits the computation of deficiencies in reserves on the basis of member banks’ deposits at the ning of business, instead of at the close of business, on the same day. The new ruling is of much im- portance to the Federal Reserve mem- ber banks in Washington, and has the same significance to banks everywhere se. brief, the board “has amended subsection “a” of section 4 of its regu- lation D so as to provide that, in com- puting penalties for deficiencies in re- serves the required reserve balance of each member bank at the close of busi- ness each day shall be based upon its net deposit balances at the opening of business, instead of at the close of busi- ness, on the same day.” “No change,” the board adds, “was made in the existing practice of com- puting such deficiencies on the basis of average daily net deposit balances cov- ering semi-weekly, weekly or semi- monthly periods.” This change in the regulation was made because fluctuations in their own deposit balances during the day, espe- clally toward the close of business, made it difficult for member banks accurate- ly to estimate what their reserve re- irements would be each day when ey were computed on the basis of t-lfl{l‘ deposit balances as of the close of business. Vital to Big Institutions. The new ruling means more to the larger banks of the country than to the smaller ones. The deposits in the small- er banks run along more evenly, thus making the computation more simple. In the computation of such reserves the week begins on Friday and ends on ‘Thursday. At !.ha’md of the week big member have no advance information these late transactions, they efther keep extra large sums on de- e Federal Reserve to meet ncies or pay a penalty for Tequirements. regulation amendment the ue to compute their es on the weekly average basis, | using the net deposit balances of business will always how they stand. The be perfectly accurate no ctuations late in the t the end of the week, will make with the computation. ey ggggg E§ L4 » distinet step in effect. It is believed that the new ruling will function so smoothl: that bankers and Reserve officials 1 wonder that the computations were ever made on any other basis. Banks Cut Failures Losses. Even with & considerable increase in the number of failures the third of this year, the lia- bilities were slightly smaller than th for the corresponding period of 1929. At 102 the number for the three months tly was about 26 per cent above the total of 81 reported to R. G. & Co. for the third quarter of year, but-the indebtedness declined $73,877,307, from $74,120,370, or & iction of approximately 0.5 per cent. both 1928 and i i rule. A Atlantic sec together with a con- siderabie in the Western accounted for the smaller liabili- for the country, as & whole. A comparison of banking suspensions 1s made by sections for the third quar- ter of the past three 3 United States ... 103 Some issues on the Washington Stock Exchange evidently caught the prevail- ing weakness in securities on the New York Exchange today. Capital Traction opened with 10 shares selling at 53, followed by 10 more at 52% and 30 more at 52 flat. One .10-share sale took place at 513, ® Potomac Eiectae Powt: 5 ac c Power 515 per cent preferred came out at 983 and Mer- S Wasbingion Gas Light sock changes 'asl stock changed hands at 125, » " Merchants Transfer & Storage com- mon sold at 105, Peoples Drug Stores preferred registered 100% and 10 shares ©of National Savings & Trust Co. stock chm hands at 5oolynm, were mostly neglected. the largest sale being in Potomac Electric Consolidated 5s, at 1023, Financial District Notes. At the monthly meeting of the board of directors of the thi‘n‘wn Loan & Trust Co., the regular quarterly divi- dend of 3 per cent was declared. It is! ps* Sle November 1 to stockholders of | L 1 — ive men W0 women have quali- fled in the miniature golf mrn:l:znt i NCIAL. THE EVENING STAR, WASHINGTON, D. C, NEW YORK STOCK EXCHANGE Received by Private Wire Direct to The Star Office. Note—All stocks d;ln excepting which shows those stocks Indivilual sales compiled to Stock a; Dividend Rate. Add 00. High. Abitibl Pow & Paper. § 12 19% Adams Exp (1.60)... 42 21% 85% Adams Exp pf (5)...2008 87% 20% Addresforr'ph (1%). 1 32 % Ahumada Lead...... § % 97 Air Reduction (143%) 43 104% 10% Alr WayElAp (1%) 6 11 % Ajax Rubber. 4% Alaska Junea: 15% Allegheny Corp. 200 Allied Ch & Dy (né). 121 Allied Ch & D pt (7). 851 Alllance Realty t3%. 60s 3915 Allis Chalmers (3).. 12 18% Amal Leather pf. 1 18 AmeradaCorp (2. ., 3 2 Am Agricul Chem... 1 224 Am Agricul Ch pt. 66% Am Bank Note (13 37% % 34% 2 122 84 37 Am Br Shoe (2.40) 118 Am BrSh & F pf (7) 8% Am Brown Bov Elec. 1 13 60% Am Brown BEpf (7) 30s 68y 108% Am Can (15).. 38 Am Car & Fdy (6). .. 80% Am Car & Fdy of (7) 38 Am Chain (3)... 756% Am Chain pf (7) 36% Am Chicle (13). 9% Am Com Alcohol . 26 Am European Secur. 37% Am & For Power.... 126 90% Am & For Pw of (6).410s 84 Am & For Pow 24 pf. 1 84 Am Hawallan (a10). 2 49'% Am Home Pr (4.20).. 28% Am Ice (t4)... . 26% Am Internat! (2) . 304 Am Locomotive (4). 88% Am Locomot pf (7).. 35% Am Ma & Fy (11.65). 384 AmMach & Metals. . Am Metal Co (1%) 66 Am Nat Gas pf (7) 48% Am News (3t4)... 62 Am Pow & Lt (31),.. % 99 AmPow&Ltpf(6). 2 105 80 AmP&LpfAst(5) 2 8% 20 AmR&StSan(1%) 169 21% 126% Am Rad & S8 pf (7). 50s 148% 11 Am Republics...... 11 12% 38% Am Roll Mill (n2)... 43 39 52% Am Safety Razor (§) 7 Am Seating... 1% Am Ship & Com. 51 Am Sm & Ref (4) 100% Am Sm & Ref pf (6! 133% Am 8m & Ref pf (7). 3% Am Solv & Chem, 31 Am Steel Fdy (3).... 7 32% 110% Am S Fay pf (7). 10s 111 40 Am Stores (2)....... 8 40 40 Am Sugar Ref (5)... 3 45% % 808 13 98% Am Sugar Ref pf(7). 7% Am Sumatra Tob. 192% Am Tel & Tel (9) 108% Am Tobacco. . 109% Am Tobacco (B) 120 Am Tobacco pf (§).. 106 Am Type Fdy pf (7). 50s 112 74% Am Water Wks (n1). 100 80% T% Am Woolen.... . 28 3% Am Writ Paper ctf; 6 AmZincLead&Sm. 6 7% 34% Anaconda Cop (2%). 138 374 20 Anaconda W&C (1). 2 30% Anchor Cap (2.40)... 102 Anchor Cap pf (6%). 16% And 85 Asso DG 1st pf (8) 194 Atch To & S Fe (10 123% Atl Coast Line(t10 22% At Refining (12). 101 Atlas Powder pf 17 Atlas Stores (n1) 78 Auburn Auto (J4 6 Autosales pf.. 87 Auto Strap Saf 3% Aviation Corp of Del 19% Baldwin Loce (1%). 25 274 104% Baldwin Loco pf (7).170s 106% 25 Bb% .3 T8N 106% Bambérger pf (614).110s 107% T 624 955 Bayuk Cig 1st pf 674% Beatrice Cream (4). 101% Beatrice Cr pf (7 kil 18% Bendix Aviation Be: 4 25 99 Bloomingdale pf (7).100s 104 19% Bohn Alum&Br(1%) 3 19 . 42 69% 4 Brockway Mot Trk.. 40 Brockway Mot pf (7) 20s 40 8% Bkiyn-Man Tr (4)... 17 7 84% Bklyn-Man Tr pf (§) 5 10 Bklyn & Queens..... };:x 110 Bkiyn Union Gas (5) 30% Bueyrus (1).... . 29% Bucyrusev pf (2%). 6% Budd (EG) (1). 8% Budd Wheel (1)...,. 19% Bullard Co. . 26% Bulova Watch (3)... 90 Burns Bros (A) (8).. 14% Burns Bros (B). 89% Burns Bros pf (7)... 26 BurrAdd Mach (1).. 49% Byers (A M).. 108'% Byers (A M) pf (7. 5214 Calif Packing (4). % Callahan Zinc & L4.. 88 Calumet & Arizona.. 9% Calumet & Hecla. ... 50 Canada Dry G A (5). % 165% Canadian Pacif (10). 40 Can Pacific 19% Cannon Milis (1.60).. 12% Capital Admin (A) 96 Car Clin & O sta (5). Stock and Dividend Rate. Conde Nast Pub (2). Congoleum-Nairn... 58 Consol Cigars (5) . 3 Consol Cigar pf (7). Consol Film (2)..... Consol Film pf (2).. Consol Gas N Y (4).. Cons Gas N Y of (5). Cons RR Cub pf (6).. Consol Textile. . Container A (1.20). Container B . Contl Baking A. Contl Baking B..... Contl Baking pf (8). Contl Can (23%).. Contl Dia Fibre (1) Cont] Insur (2.40) Contl Motors.s. Contl Oil of D Contl Shares (1).... Corn Pr Ref (14%). Corn Prod pf (7). Coty IN€......... Crof Wheat (12%). Crown Cork (£2.40) . Crown Cork&S(2.70) ;! 146 Cuba RRpf (6).. ban-Amer Sugar. . -Amer Sug pf. Dom Sugar... y Packing (4). Curtls Publish (7). Publish pf (7) Curtiss Wright Corp Curtiss Wr Corp A.. Cushman’s pf (7).... Cutler-Ham (3%)... Davison Chemical. .. Deere & Co pf (1.40). Delaware & Hud (9). Del Lack & Wn (17). Denver & RG W pf.. Detroit Edison (8). Devoe & Ray (1. h Dom Stores (11.20).. Drug Corporat (4) Duluth 8 8 & Atl, _Dunhill Int (1). Du Pont de N (14.70) Du P de N deb pf (§) East Roll Mill (ht2). Eastman Kodak (18) Eastman Kod pf (6). Eaton Axle &8 (3).. Eitington-Schild.... Elec Auto Lite ( Electric Boat. El Pow & Lt (1) 1 El Pow & Lt pf (6).. El Pow & Lt pf (7). Bl Storage Bat (5).. Elk Horn Coal. . Endicott-John (5)... Eng Pub Serv (2.40). uit Office Bldg (3) EFORR...c0ue. .o Evans Auto Loading. Fairbanks Co pt.... Fairbanks Morse (3) Fairbanks M pf (7).. Fed Lt & Tr ($1%).. Fed l).‘lbl‘m Dt (6) Fid Ph Fire In (2.60) tone T& R (1). st T & R pf (6).. First Nat Strs (2%). Fisk Rubber........ 21 Fisk Rubber 1st pf..140s Follansbes Bros (2). .; 2 Fox Flim (A) (4).... 305 Freeport Tex (15) 30 Fuller pr pf (17.94).. 208 10 20 ) 4 Gen CableA.... Gen Cable pf (7) Gen Cigar (4) Gen Electrio (1.60). Gen Elec spec (60¢). Gen Food Corp (3). .. Gen Gas&El A (e30c) Gen Ital Ed (22.62).. - Pnad RananBuon Glidden Co (1.30) Gobel (Adolf) Gold Dust (2%) Goodrich (B F) Goodyear Tire Goodyear 18t pf (7).. Gotham Silk Hoslery 6 Gotham S H pt (7). 110 Gould Copper Graham-Pai Granby Consol ( Grand Silver 8 (m1] Grand Union. Grand Union p! Granite City 8tl (4) Grigsby Grunow. Guilf Mobile & North, - 7 Guif States Steel.... 1 Hackensack W (1%) 1108 Hacken pf A (1%)... 108 Hahn Dept Stores. Hahn Dept 8 pf (8 Hall (WF) Pr Co (2) Hanna pf (new) (1) Har Wk Ref (12%) Hartman Corp (B Hav Elec Ry pt (6). Helme (Geo H) (17). Hershey Choo (5) Hersh Choc pf (16 Hoe (R) & Co. . Holland Fur (e12% Hollander Son: Houdaille Hershey. . Household Fin pt (4) Houston Ofl (b10%). Howe Sound (143%).. Hud&Man Ry (3.50). Hudson Motors (3). 8% A% . Low. € 1 36% 86% [ STOCKS STEADIER Secured by first deed Prevailing _Interest Joseph 1. Wel TUESDAY, OCTOBER 14, 1930. Money to Loan and commission. of trust on real estate. FINANCIATE, wxw PROPERTY MANAGEMENT AFTER EARLY LOSS Leaders Supported Following | Heavy Selling Pressure at Opening. BY CLAUDE A. JAGGER. Associated Press Financial Editor. NEW YORK, October 14.—Trading turned relatively quiet, and share prices made steady and broad recovery in to- day’s stock market, after a flurry of liquidation at the opening, representing an accumulation of selling orders over | the week end, and possibly the final| Jjettisoning of weakened accounts. | Sale of large blocks, several individual | transactions running from 5,000 to 12,000 shares, during the first few| minutes depressed prices close to the lows of last Friday, but the resistance met at that level was impressive and pro- moted extensive short covering. In this connection it was notable that economic advisory services in their weekly advices to customers cautioned against being frightened into disposing of good securities, and at least one of the larger services advocated substantial investment of funds in selected stocks around recent levels. The first flurry of selling depressed prices about 1 to'5 points, but by early | afternoon there were numerous net gains of ltke extent, most pivotal shares showing advances. Trading was fair volume, but falled to reach the pro- portions of last Friday or Saturday. United States Steel declined 3% points | to 14435, then made full recovery. American Telephone converted an | early loss of more than 2 points into a gain of 3. Allled Chemical dropped nearly 4, then rebounded to show a gain of about 5. General Motors sold | off a point to 34Y, and was one of the few prominent shares reaching new low ground, but it quickly rallied. News of the day and the week end | was largely reassuring. Further selling | pressure in the grain markets was one of the few adverse influences. Brokers? stated that the two-dey week end closing had permitted the financial community to make a sane appraisal of the stock market situation and that conclusions were in the main cheering. | \N The reduction of $215,000,000 in loans | \ on securities by weekly reporting Fed- eral Reserve member banks was ac- cepted @s indicating that real cleaning out of troublesome situations had been extensive. This reduction was consid- erably larger than the drop of $158, 000,000 in brokers’ loans. In recent months brokers’ loans have fallen much more rapidly than blnk‘ loans on securities, indicating a mere transfer of loans from brokers to banks. A reversal of the tendency was regard- ed as decidedly cheering. American Telephone’s third-quarter earnings statement showed a little im- provement over both the preceding quarter and the like quarter of last year, and was markedly better than had been expected in some quarters. Earn- ings per share of $2.55 were substan- tially less than the $3.10 of the same period a year ago, owing to larger capi- talization, but showed that the year’s dividend was being earned by & sub- stantial margin. Other corporate news included a statement by President Sargent of Chi- cago Northwestern that September earnings were the best of the year, United States Rubber reported produc- tion of tires last month was 22 per cent greater than August, and that is is plan- ned to continue this schedule through October; sheet steel producers in Chi- cago reported shipments in the first 10 days of the month as nearly double those in the like period a month ago. Brokerage Service for Securities and Commodities FENNER & BEANE WASHINGTON, D. C. J. D. MOTHERSHED W.E.LEWIS ManaGERs 1430 K Street, N. W. Phane National 7000 MEMBERS NEW YORK STOCK EXCHANGE and | Principal Commodity Exchanges Private Wires to New York, New Orleans, Chicago Apartment House MANAGEMENT SUCCESSFUL Apartment House management is a matter of seasoned experience and competent organization— both of which make up the service we offer owners—to their relief from worries and for increased revenue. B. F. SAUL CO. 925 15th St. N.W, Nat’l 2100 MO RT G A:GR L O A SNTS Open Until 5:30 P.M. October 15th 3% Savings [ politan has waxed stronger, demonstrating, for one hundred years and more, the power of merited 1 Through times, bad as well as good, The Metro- l | public confidence. Your Payday funds and other cash deserve the protection of such a bank as this. We invite you to utilize the facilities of Our Savings and other departments. Permanency and Tested Strength Our Trust Dept. acts in all fiduciary capacities National Metropolitan Bank Capital, Surplus & Undivided Profits Over $2,300,000.00 15th Street, Opposite U. S. Treasury OLDEST National Bank in the District of Columbia Dull times have proved golden opportunities —to men of courage and vision oTHscHILD coolly bought French bonds when the streets of Revolutionary Paris ran red with blood. John Jacob Astor, during the war of 1812, invested heavily in Govern- ment securities sold by fright- ened “patriots” who thought America would not come through. History is full of similar in- cidents. Men of outstanding financial acumen have all real ized that the time to pick up good securities at attractively low prices, is when the major- ity are either selling in panic or else refraining from buying through fear that a temporary economic setback may become permanent disaster. Standard Supervisory Service A Personalized Service for Individuals and Institutions Employing Funds in Ex- cess of $150,000 in the Security Markets: Standard Supervisory Service affords a selected clientele of investors, a means of obtaining intensive, individualized and unbiased supervision of their investment programs and security holdings — with - recommendations for changes, whenever desirable to secure greater safety, greater income or greater enhancement of capital: The accounts administered by the Standard Si Service consist of large personal funds of individuals, trust funds, investment funds of banks, insurance com- pany funds, endowments and surplus funds of business organizations. Supervisory Servi-- is thorough, definite, confidential and personalized to the nth degree. The exact details of the Service rendered and the fees charged for services vary according to the requirements and security holdings of each client. Standard is an organization of specialists—field men skilled in gathering business and fin- ancial data at first hand, many others interpreting broad eco- nomic forces and their far. reaching effects, analyzing the positions of the key industries, dissecting corporation balance sheets, reducing a mass of vi- tally important facts to clear, concise, pithy reports with recommendations for action: The final Standard reports and recommendations that reach you do not represent the judg- ment of any one man. They are the crystallized opinion of dozens of trained minds. Standard numbers thous- ands of individual investors Solving your problem Here is where the Standard Statistics Company can be of invaluable assist- ance in solving your investment prob- lem. For a quarter of a century this organization has been engaged in the task of furnishing timely, unbiased in- vestment information and counsel. From a mere handful of people, it has grown toa force of over 1200employees. And the sole reason for its astounding growth is because the service it gives fills a real need—because the invest- ment counsel it offers has proved sound, helpful and very much worth following. being played by members of W Chapter, American Institute of Banking. They are: Aubrey O. Dooley, Richard A. Norris, Frank M. Perely, H. F. Kim- ball, D. R, Warburton, Miss Anne Craw- ford and Miss 8. Winifred Burwell. About 150 are expected to attend the forum meeting of Washington Chapter, American Institute of Banking, tonight 8t the Willard. The work of the New York Stock Exchange will be pictured by one of the exchange officials. VIRGINIA COTTON CROP AFFECTED BY DROUGHT 37% Ol Psu® vt (336 ). By the Assoclated Press. 98 ChicRI&PDL(6).. RICHMOND Va., October 14.—Fur- 16% Chickasha Cotton Ofl ther decline was noted in the Vifginia 37% Childs Co (2.40).. . cotton crop during September, owing | 33 Chile Copper 2%)... to unfavorable weather conditions, and 16% Chrysler Corp (3)... the October 1 forecast of 34,000 bales 38 City loe & F (k3.60). was 6,000 bales less than the prospects 81 City lce & F of (634) on September 1 and 14,000 bales under 3% City Stores (50¢)... year's production, John A. Hicks, 24% Chi YellowCab (3) tural statistician of the Federal- | 60 25 Cluett Peabody (3).. Reporting Service said to- | 191% 1381 Coca-Cola (6 . 52% 4814 Coca-Cola A (3)..... 50 Colgate-Pal-P (1i4). 124 Collins & Alkma 10% Colonial Bescon Hupp MOtOrS. . ovvs e Mlinots Central (7). Independ O & G (2) Indian Motor Cycl Indign Refining. . Ind Ray (b5 % stk). Ingersoll Rand (15)., Inland Steel (4).. Inspiration Coppe: Insurance Sh (46c). Ins ctts (Md) (80c).. Interboro Rap Tran. Interbor Rap T c.0.d.. Interlake Iron (1) Int Agricultural Int Agricul pf (7) Intl B ch ( 1ot 8 (260).. Intl Cement (4) - Taking advantage of present market conditions among its clients as well as a big majority of the largest banks and financial houses of North America and Europe. Whether you are inter- ested in business or security markets as an individual investor, a trustee, a banker or business executive, there is a Standard Service to fit your needs. Simply fill out the coupon below and we will send more detailed informa- tion. And if the investments in_your charge total over $150,000, your special attention is directed to the Standard Supervisory Setvice, outlined in panel above. 103% 16% 3 8 - GnovarinunaBosalotas Sanvannnena Today’s market offers some excep- tional investment opportunities. But never was there greater need for care in the selection of securities. The market abounds with pitfalls as well as opportunities. But in order to decide wisely what securities to sell and what to buy in their place, you must have accurate knowledge of market conditions and of the outlook in the leading industries as well as of specific companies within these industries. 6% Chio Gr 26 Chic Great W, 65% Chi Ind & Lou pf 8% Chic MilSt P& 18% Chic MiIStP & 89% 46% Chicago & N W (§ 140% 1256 Chi&N W pf (7). 31 9% Chic Preu Tool. - 23 Intl Hydro El A (e2) Intl Match pt . Intl Mer Marine (2), Intl Nick of Can (1), 45 ~Intl Paper pf (7). .. Intl Pap & P pt (7) .. Intl Printg Ink (2%) Int Print Ink pf (6).. lntuny- Cen A E3IN I STANDARD STATISTICS CO., Inc., Dept. 1510 | atk City Stanoarp Stamistics Company;, inc. 200 VARICK ST. NEW YORK BALTIMORE OFFICE: 200 Varick Sereet, New, Yt 1028 MUNSEY BUILDING L e Seliere we:fldd’bfln-u.y —— [ & benker business executive Dln{;:‘"“.fl‘hi‘,*” d information ing S [] Send me full regarding Standard Super- Name Address D__—' Colum Graph (4% ).. Jewel Tea (14 Columbiai e ont v Johns-Manvil Jones&Laugh pf (1).!70; e s ot B teboniohe 6% Kaufmann (1%) Th Kayser Jullus (2%). 85 Keith-Alb-Or pt (7). w e