New Britain Herald Newspaper, June 10, 1922, Page 11

TipirasEasiile $riigizyzameTes 'BABSON ADVISES AGAINST PAYING : HIGH INTEREST RATES ON MONEY Wellesley Hills, Mass, June 10— Roger W. Babson issued the following statement today regarding the money situation: 50 Per Cent. Decline “For the past few years, banks, mortgage companies, and others en- gaged in the loaning of money have been educating p&ople to pay high rates of {nterest. Manufacturers, business men, home bullders and oth- ers are today paying high rates of in- terest which a few years ago they be- Meved never would be pald. Natural- ly this has handicapped employment, especially building operations. These people now wonder whether this is to be a permanent condition or whether these high rates are only temporary. Btatistics lead me to belleve that the high money rate period of the past few years has passed for many years to come. Already money rates have declined greatly in the wholesale mar- ket. Where—a year ago—the banks were loaning money on call to the brokeérage houses at from six to eight per cent., they are now loaning at about four per cent. Even ‘three to six months paper’' can be sold‘at from 4% % to 4% 9% discount. These are tremendous changes within a short period of time. In fact the change is ‘8o great (a decline of about 50 per cent.) that it would not be surprising if money rates now strengthened for a short while preparatory to another downward movement, Money a Commodity “Money is a commodity the same as cotton, wool, lumber, or copper. It has a wholesale market and a retail market. A wholesale price and a re- tail price. Moreover, as with commo- dities, the retall price in the money market lags, about six months to a year, belind the wholesale price of the money market. This means that the rates in the wholesale money mar- ket go up and down from six months to a year before the average business man and home huilder {s affected. It takes nearly a yoar for cotton to get from the plantation to the shelves of the depdrtment store. Hence, it may be several months before the retail cotton goods trade gets the advantage of a decline in the price of raw cot- ten. It is the same way with money as with cotton. It {s some months after the decline in the wholesale price ,of money before the business man and the *home bullder get the advantage in the decline of rates. The bankers are not to blame for this. It is economic law. As it takes some time for the bankers to raise the re- tall interest rate for money after the wholesale rate advances, so it takes a considerable time for the retail rate to decline after the wholesale rate declines.” Mr. Average Man. Being, asked how this is to affect the average man during the next year Mr. Babson replied as follows: ‘‘This means that the average man will be able to borrow money much cheaper during the next few years than he has been able to borrow dur- ing the past five years. It means that horrowers should now avoid borrow- ing for long terms at high rates. It means that there will be a decline in the retail price of money the same as there has been a decline in the whole- sale price of money. It means that money will be more available for the What the Federal Reserve Bank Does A Federal Reserve Bank does for banks almost exactly what banks do for their customers. It receives money on de- posit from such banks as have become members of the Federal Reserve Sys- tem, and lends to them. Every member bank is obliged, by law, to keep with its Federal Reserve Bank an amount of money which bears a certain propor- tion to the deposits it has received from its customers. This is called “reserve” and as the Federal Reserve Banks keep the reserves of their members they are called "“Reserve” Banks. At times, member banks borrow from their Fed- eral Reserve Bank just as individuals borrow from their own bank. Indivi- duals cannot deposit with a Federal Reserve Bank. We Are Members of the Federal Reserve System' " The Hartford-Connecticut Trust Company Corner Main and Pearl] Streets, Hartford, Conn. Capital $2,000,000.00. Surplus Funds $2,000,000.00 Safe Deposit Boxes, $5.00 and upwards. Settlement of Estates. Foreign Exchange to all parts of the world. LETTERS OF CREDIT — GENERAL BANKING Bank by rmail. It is LOANS safe and saves time. Safe Way to Borrow Money — We Lend Money On NOTE, and HOME FURNITURE, without removal, to persons having stcady employment, or incomes, without inquiring of employers. PAYABLE IN 8 to 15 MONTHLY INSTALMENTS, or AS DESIRED: based upon actual unpaid balances, for the EXACT TIME YOU HAVE THE MONEY. uP 10 $300 is financed and directed by business and professional men: conducted in a spirit of public SERV- ICE, and not solely for profit; VERY FAIR, AND HELPFU COURTEOUS DEALINGS; NEW BORROWERS WELCOME TIONS IN ONE PLACE; WE WILL HELP YOU SOLVE YOUR PROBLEMS; IES INVITED; QUICK SERVICE. ¥ J. 0, SATURDAYS, 9 to 1, CALL PERSONALLY, or WRITE, or 'PHONE HOURS, 9 to 5 US, NEW BRITAIN 1- ROOMS 104-5 Licensed, and Supervised, by State Bank Commissioner. Bonded to the State of Connecticut. CONFIDENTIAL CONSULTATION BANK-LIKE SERVICE THIS INSTITUTION Beneficial Loan Society PROFESSIONAL BLDG. (SECOND FLOOR, RIGHT). NEW BRITAIN DAILY HERALD, SATURDAY, JUNE 10, 192z building of homes, ool houses, roads and construction work of every form, Most of all it means: As the banks during the past few years have educated the public to high rates, the public must during the next few yeurs educate themselves back again to the lower rates of some few years ago.'" General business is running 15 per cent. below normal-—an increase of 1 per cent, over last week, It is hold- ing well in face of the bearish factors resulting from the railroad ruling. City Items Victrolas and Planos at Morans', —advt, Indianola Councll No, 10, D, of P. will hold an important meeting T‘on. day evening June 13th. The first read- ing of the new revised by-laws, nominations of officers for the ensuing term, and the exemplification of de- grees on several candidates will com- prise the business session after which lunch will be served and a soclal time enjoyed. Through a typographical error fricassee chickens were quoted for to- day at 45¢c 1b. in the advertisement of the National Meat stores. The price should have been 29c a lb.—advt, Mattabessett Tribe No. 14 Imp. O. R. M. will hold a smoker and soclal time next Monday evening in their wigwam, Judd's hall. Arrangements will be completed for the quarterly meeting of the Northern Connecticut Red Men's Council which is to be held in our city June 17th at which time the local tribe will be the host of sixteen tribes and two or three hun- dred Red Men are expected to be in attendance at this convention. A quality wet wash for 75c. Unfon Laundry Co.—advt. Mr. and Mrs. Adolph L. Johnson of 57 Columbla street are receiving con- gratulations on the birth of a son, Robert Nelson, born at the New Brit- 'nin General hospital. Mother and sopn are doing well. See our fresh fruit and beverage window display. Dickinson Drug. —advt. BROKERS IN BANKROPTCY McAll and Riley and Company Have Liabilities of $150.000 and Assets of Only About $100,000. New York, June 10.—An involunta,y petition in bankruptcy was filed in rederal court yesterday against McAll & Riley & Co., investment brokers. by three creditors who alleged liabili- ties of $150,000 and assets of $100,- 008, The firm which holds member- ship in the consolidated stock ex- change said it had been hard pressed by creditors for some time. Y. W. C. A. MEET TODAY Athletes Are Competing In Games At Boston, Mass Boston, June 10.—Girl athletes rep- resenting a score of cities in New York, New Jersey and New England, came here today to compete in the Young Woman’s Christian association track meet in the Harvard stadium. William C. Prout, president of the A. A. U. as the referee, was to pre- sent a cup to the girls from the city making the highest score. The events were divided into three groups, the first consisting of the 30 yard dash, running high jump, shot put and standing broad jump; the second the 100 yard dash, 60 yard hurdles, baseball throw and running broad jump and with a shuttle relay comprising thé third group. —_— Girl JUDGE B Finds 6.500 Divorce Suits is Too Much of a Strain. | Chicago, June 10.—Judge Sabath of | the superior court is i{ll of a nervous breakdown caused by hearing 6,500 divorce suits in two years. He has petitioned the superior court to trans- fer him temporarily from the divorce assignment. Three phases of divorce cases are given by the judge as the primary causes of his breakdown: The cus- tody of children, attempts to reconcile couples and the question of alimony. Bulgar Leader Premier Stamboulinski is Bulga. ria’s foremost popular leader. If the monarchist regime were over- thrown, he probably would head the Also lend to Property owners; STRICTLY CONFIDENTIAL AND 'ONCENTRATE __ YOUR OBLIGA- government. LOANS Up 10 NO PAWNS: LOANS RE- AWFUL CHARGES ONLY, PRIVATE INQUIR- 87 WEST MAIN STREET WALL STREET STOCK EXCHANGE REPORTS High Am Bt Sugar .. 47% Am Can 40 Am Coftom Ofl , 28 Am Loco . L 112y Am 8 & Ref 613 Am 8 R com .., 7T0% Am Sumatra Tob 401 Am Tel & Tel . 128% Am Tob .... Am Wool Anaconda Cop AthT& S F ., At Gulf & W1 . Bald Loco ..,. 113 Baltomore & O . 45% Beth Stel B ... 77% Canada Pacific 137 Cen Leath Co .. 38% Ches & Ohlo ... 65 Chi M & St P . Chi R Isl & P . Chile Copper ... Chino Copper .. Con Gas Corn Prod Ref Crucible Steel Cuba C Su Endicott John LELTY 411 41% 21% 0% 119% 103% T4 17% 81% 16% Erie 1st ptd Gen Elec . Gen Motor .. Goodrick B I . Gt North Pfd .. 7 In Cop ...... Inter Con ... Inter Con pfd .. Int Mer Mar .. Int Mer M pfd . Pacific Oil . Int Nickel . Int Paper ...... Kelly Spring T . Ken Copper Lack Steel . Lehigh Valley Mex Petrol .. Midvale Steel .. 36% 36% Missouri Pacific . 22% 22 22y N Y Central .... 89% 89 893 NYNH&H . % 29 Norfolk & W . 1051 1051 North Pacific ... T4l 4% Pure 0Oil 321 32% Pan Am P & T". T 69% Penn R R . % 42 Pierce Arrow .. 21% 20% Pitts Coal 641, Ray Con Cop .. 1T% Reading Rep I & S ... Royal D, N Y .. Sinclaid Oil Ref . South Pacific ... South Rafl .. Studebaker Co . Texas Co Tob Pro . Trans Oil .. Union Pacific .. 136% United Fruit 139 Uniteod Re St .. 65 U 8 Food Prod 7% U S Inudus Alco 54% U S Rubber Co . 633% U S Steel 101% Utah Copper .. 66 Willys Overland . 8% National Lead 94% 4% 189% 137% 138% 36% 1213 475 . 80% . 18% (Putnam & Co.) Hfd4 Elec Light .... Southern N E Tel Am Hardware 5 Bilings & Spec com Bristol Brass Colt's Arms Eagle Lock Landers ¥ . N B Machine ... Niles-Be-Pond com . North & Judd .... Peck Stow & Wil . 29 teussell Mfg Co . . 90 Scovill Mfg Co . . 330 Standard Screw « 286 Traut & Hine .. 20 Union Mfg Co GEA Stanley Works ... . 51 MAKY FISH FOUND DEAD Govt. Fisheries Bureau Will Investi- gate Cause of Strange Phenomena Off Coast of Wiimington, N. C. Wilmington, N. C., June 10.—Thous- are dying along the Pender coast and are being washed upon the beaches Dr. J. H. Hamilton, county fisheries bureau to send experts here Deposit In This Mutual Savings Bank Paying 4159, Interest SAVINGS BANK Of New Britain Organized 1862 Assets $12,960,390 Open 8 to 3. Saturdays 8 to 11 Monday Evenings 6:30 to 8 SBTANDARD TIME 4 | Connecticut ands of fish ranging in size from one | inch bottom feeders to 5 foot sharks | in shoals over a stretch of 20 miles. | health | officer has requested the government | | to determin th caus of th phenomeon Dr. Hamilton advanced the opinion that the*fish were killed by lightning during the severe electrical storms of the past few days A local geologlst has advanced the opinfon that a subterranean carth- quake 18 responsible p Local health authorities have taken prompt action to prevent the sale of fish caught within a huadred miles of the scene, GONN. PEOPLE ASK FOR REFUND ON TAX Claims for $8,000,000 Back ‘Levies Illegally Collected June 10.—An endeavor to pay up back taxes illegally col- lected during the ar 1921 will get preference over all other work in the income tax unit of the internal de- partment in Washington according to dispatches received, For the state of there are 270 refund claims for back taxes on file in the in- ternal revenue office here, amounting to over $200,000 and the news from hington will be welcome to those 2 taxpayers in the state who feel that they paid too much on the last income tax. This number of refund claims as given out today by Collector of Internal Revenue Robert O. Eaton includes, however, claims for all kinds of federal taxes as well as the income tax, though the majority of the claims are for illegal collections on the latter. The fact that President Harding asked congress on Tuesday for $28,- §14,500 to repay these illegally col- lected taxes is sald to lend consider- able weight to the report that the in- come tax unit is about to busy itself with this problem before it goes ahead with making additional assessments. The money in the hands of the de- partment is believed to be dwindling away fast and in order that the pay- ments of refunds be successfully ac- complished, a replenishment is evi- dently necessary. $8,000,000 In Abatement Claims In addition to the $200,000 in re- funds claims in the internal revenue department here, Collector Eaton said there was approximately $8,- 000,000 in abatement claims filed from Connecticut taxpayers, the difference between the two kinds being that the former taxes have been paid in to the government and the taxpayers want their money back, whereas the datter were not paid. Collector Eaton pointed out that the claims were merely claims that the | filing of a claim did not necessarily mean that the payment on the tax was illegal. After a proper investigation, he said, those which were found to be illegal would be refunded from Wash- ington directly and not from his office as all refunds on back taxes are Hartford, handled by’ the commi¥sioner of in- ternal revenue. | money. $ .50 Per Week $1.00 Per Week $2.00 Per Week $5.00 Per Week PUTNAM & CO. Members New York Stock Exchange Members Hartford Stock Exchange (Successors to Richter & Co.) 0 Central Row, Hertford, Comn, Tel. Charter 2600 NEW DBRITAIN OFFICE, 31 W, MAIN STREET WE OFFER: Billings & Spencer Preferred JUDD & CO. MIEMBERS HARTFORD STOCK EXCHANGE BARTFORD: Hartford-Conn. Trust Bldg., Tel. Charter 6330 NEW BRITAIN: 28 West Main St.. Telephone 1815, WE OFFER— s CRANE COMPANY 7% PREFERRED STOCK At 106 to yield 6.600. Net earnings for past 20 years have averaged 4% times dividends on preferred stock outstanding. Net as- sets are $476 a share and net current assets $185 a share of preferred outstanding. HARTFORD 10 Central Row Fi Telephone Charter 8000 Mecmber Hartford Stock Exchange. NEW BRITAIN New Britaln National Bank Bldg. Telephone 2580 DONALD R. HART, Manager BMember N. Y. Stock Exchange We Offer: AMERICAN HARDWARE LANDERS, FRARY & CLARK JOHN P. KEOGH Member Consolidated Stock Exchange of New York Mii‘:i‘dllzagwn BONDS Springfield Direct Private Wire to New York and Boston G. F. GROFF, Mgr.—Room 3509, N. B. Nat'l Bank Bldg.—Tel. 1013 Waterbury = These Are Pay Days for Vacation Club Savers We are paying out thousands of dollars this month to the fortunate member's of our Vacation Club. The small amounts they have been de- positing every week have steadily increased to useful sums of ready The Vacation Club method is the sure and systematic way to save. You know exactly how much you will have at Vacation time. Now is the time to join our 1923 Club. We have different classes of payment to suit everybody’s means. Your first deposit makes you a member. You can join tonight. . $ 25.00 $ 50.00 $100.00 $250.00 for Fifty Weeks Pays for Fifty Weeks Pays for Fifty Weeks Pays for Fifty Weeks Pays e Thomson, Tenn & Co. e e