Indianapolis Times, Indianapolis, Marion County, 22 July 1936 — Page 15

renas

* ¢

Federal Policy on

WEDNESDAY, JULY 22, 1986

PAGE 15

676,120.

of cigar U - in 1985 was 28 per cent NS according to the Department of Commerce. Factory value of those manufactured last year was $717,

Bank Reserves Explained.

«BY JOHN T. FLYNN cn

YORK, July 22.—After so much talk of possible inflation for the ldst three years, the Federal Reserve Board has taken a definite step to check any threatened inflation. This it has done by an act which will be a little

mysterious to the layman who does not follow the intricacies of banking finance. : Every bank which is a member of the Federal Reserve System is required to keep on deposit in the Federal Reserve Bank a certain reserve. That is, for every $100 deposited with a commercial bank in New York or Chicago the bank must deposit in the Federal Reserve Bank $13. In other cities — reserve cities, as they are called—the bank must keep on deposit in the Reserve Bank $10 out of every $100 of {ts own depodits.

These accumulated reserve de-

posits of all the banks make a very jJarge sum. Under the law up to the present time the member banks have had on deposit in the reserve banks in round figure six billion dollars. But under the law they are required to have only three billion. Hence they have three billion more than is required. These are the “excess reserves” you have been hearing so much about. : ® x = T= higher the reserves are the less the bank will have to

lend. For instance, if a bank has deposits of one million dollars, its reserves in New York would have to be $130,000; in a reserve city, $100,000. ‘The bank could therefore lend only $870,000 of its million in deposits. If the reserve required were raised to 19 per cent or $190, 000, than the bank could lend only $810,000 instead of $870,000 of its deposits The limit on loans thus created is even more important, because, as you know, banks pyramid their loans. For instance, A deposits ' $1000. The bank then lends $870 of it (the legal limit). But the $870 remains deposited in the bank. The bank can now lend this $870. It does actually lend $757 of it, the legal limit, since it must put up a reserve on the new deposit thus created. It can then lend this $757 which also remains on deposit and so on. The effect of increasing reserves upon this pyramiding process is very important. 7 = o T= Federal Reserve System, under the Banking Act of 1935, has the power to increase or lower reserves. It has therefore issued an order requiring banks to maintain larger reserve deposits. with the Reserve Banks. In New “York and Chicago the reserve must be 19 per cent.instead of 13 on demand deposits. In other cities it is raised from 10 to 15 per cent; in country banks from 7 to 10% per cent; on time deposits from 3 to 43% per cent. The effect is that banks, instead of a reserve of $3,000,000,000, must maintain one of about $4,100,000,000. This means that the banks will be able to loan less, to pyramid less. To that extent their power to push credit expansion or credit inflation is limited. But it does not prevent banks making all the loans that sound * business requires, because they will still have more reserves than the law requires. ~ (Copyright. 1936, NEA Service, Inc.)

Investment Trusts (By Thomas D. Sheerin & Company)

Ask. Administersd and 2nd ... 13.85 fliliated Inc Hs Business Shares. . SBullock Fu Ltd.

cc Unm porate Trust Shares orig. Diversified Tr Shares B iversified Tr Shares C iversified Tr Sharea D .... *Dividend Shares, Inc General Investors Trust .... *Incorporated Investors Investors Fund Amer Market Street Tovest Corp. Maryland nd *Massachusetts Investors . Sec “B”’.

North Amer Tr Shs 1956 North Amer Tr Shs (Orig.). *Quarte Income Shares ...

(orig). Sr Shares . | Income Shares treet Investment Co

Dicins Voting . *Ex-Divide!

On Commission Row

tations below, subject to ci es wholesale prices bei: attr

to on d Rg $2; es 2¢-pe. era te. fa . Eigse She S50 16-gt. grate. 8 $1.85. Ba 3 Susiries,

he diene iad

em atmti Sil Sintaious : 2% 78. Peaches—

Ane z Ans or bu., $1.90. blue, 4-basket cra fe 322s Grapes— Bosman ath Crate, $3.25. 'ABLES--Beans—Round i ingles 25. Beets—Home a grown. doe.” Sic. Cau: BTiS aged and imine ony, dc.

Bre plans —

- ADS .. : Peas—Colorado Be, Sesvsnenssssnee v 8 ssradrusansaastsse vais; (

Pats Aluminum Co of Ame: od . am Cyanamid zion

5 | Am Gene Am

BLOOMINGTON, MARION SHOW LARGEST GAINS

Stone -and Radio Industries Reported Operating .at High Level.

The two current hot spots in Indiana industrial activity are the Bloomington-Bedford stone district and Marion, Martin PF. Carpenter, State Employment Service director, said today. Termination of a strike among limestone quarry workers gave new life to the Bloomington area, where employment was reported 31 per cent higher in June than in May. Weekly pay rolls were up 106 per cent as a result of resumption of production, the latest Employment Service statistics revealed. Thirtytwo firms employing 1999 persons and with weekly pay rolls totaling 338, ,681 contributed to the compilaon. ‘Get New Stone Contracts

“Reports from the stone industry indicate that the present revival is more than a recovery from the standstill of May, in that much of it is the result of new contracts

coming into the district,” the July Indians University Business Review

This publication also said that output of stone for the first half of this year is more than double that for the same period last year. Output is now said to equal the level maintained early in 1931. The surge upward in wholesaler demands for radios is reported by Mr. Carpenter to be the chief reason for a gain of 31.9 per cent in employment at Marion, The radio industry, he said, reaches a low ebb in the winter and early spring. In late spring and summer it picks up.

Has Four Radio Plants

Besides the large General Household Utility Co., Marion has three other plants that manufacture for the radio industry. Employment in Marion rose 0.8 per cent in April, 83 per cent in May, and 319 in June. Pay rolls there in June were 30.5 larger than in the previous month. Twenty-six firms employ-

pay rolls of $84,116 reported.

ment gains over May, and the percentage change for each, follow: Terre Haute, 5 per cent; Anderson, 4.7; Elkhart, 4.6; East Chicago, 4.4; Fort Wayne, 4.1; La Porte, 3.5; Huntington, 2.8; ‘Indianapolis, 2.7; Gary, 25; Vincennes, 2.2; Richmond, 1.9, while South Bend-Misha-waka, Lawrenceburg-Aurora, Lafa- | yette and Hammond reported fractional advances.

A decline in employment during June was found at Connersville, Evansville, Kokomo, Michigan City, Muncie, New Albany-Jeffersonville and Newcastle.

Chicago Stocks

(By Atkins, Hamill & Gates)

Advance Aluminum Astestos Mf; Associated Bastian-Bless Berghoff ont TI a hervice ‘pid “en ervice Gord" Service P

Jrésiors. ing =...

um Nort parks anco, Standard Dred oN Jatin ... Sik Internat na) lt ams ti

G; Nobuitt 8p

New York ork Curb

(By Atkins, Hamill & Gates)

a“"w ‘B"” Gas Ss yEiectrie cen

7 | Carrier Corp ..........

le Petroleum Corp . “apres

Crocker-Wheel ler 2 Bo nN &

Elec

Im pe a Mol yoden Natl Bellas

. ess Niagara Hudson Pwr .

Pennroad Corp

(By Blyth & Co.) NEW YORK STOCKS

Bankers Trust ....ccevcec.enes Central Hanover ........ Chase

ssensssse Sess snntsntanna a sasevssvenneeiuenlll

Guaranty sean ssstssse

! ssasseessans ; Bisenancons tnsesnsenn Hanover Sess ianscennsansarennae’ Sesessessensacni’

Twenty-four cities in Indiana re- | Pur ported on June employment and |Shel pay rolls. Others to show employ- | Soc Vac

MOTHER NATURES LAST CHANCE

New York Stock Ex change Prices

(By Thomson & McKinnon)

Oils— Amerada .. Atl Rf

108 g 30 Barnsdall

08 108%

ing 4551 persons and with weekly H

Co Shi Pet ... is ye

Corp Tidewater Assn. 17

Un Oil of Cal -.. Steely—

Am Roll Mills... Beth Steel Byers A

Ladium Steel . d Steel

22%

27% 541

s Steel 6 Rop Iron & Steel 213s Rep Irn-Stl pid. a EE Rod U 8 Steel pid. ‘198 Warren P & Fdy 31 Youngs'n 8 & T 8

Studebaker .... 1 Yellow Truck..

Motor Access—

ton Mig .... Hlec Auto Lite..

s | Elec Stor Bat

Greyhound

| Houdaille

[fimken Det Axle Mining— Alaska Jun ... m Sm

Fark he!

ose. Vaned ium

Amusements

% | Paramoun

Warner "Bros ets Tobaccos—

Am Tobacco ‘A’. Am Tobacco ES i0t%

Lorillar Philip Tortis . FH Reynolds Tob B 55%

eo pra “Northern d 40% Gt Northern pid Iv

£2 iy

5% ik LATE

SSRERE 8 :

Noon High Low N.Y.

High Am Can .136% Am Mach & Fdy 23 Anchor Cap 20 3rklyn Man Tr 49% Burroughs Add. 29% Cc 166

dde: 46 Int Bus Mach. +16%%4 Inter Harv .... 82%

46% 46% 1687'2 167% 82 82

Prev.

167% 82%

Treasurys

DOMESTIC

Alleg Co 8s '44 ... Alleg Corp Sa 4b 0! S 2 Am Pr, %

Sy Gas 5s May 52 .. Gas 5s ADH Ba . Gal G 5s

Sontainey Corp | Se Con 4Y%s

y El rotl Tel & Tel 4% tl] Tel & Tel 5s °

& Mo Ksn Tex A Natl Dairy Fo atl Stee] ckel Plate 4%s "73... ckel Plate Sls "74 Cent 5s 2013

ge ”

§ °F

i 3380201 4 SH

a Ld 232383235383

82 #

eIpen

N. Y. Bonds

(Reprinted From Late Times Yesterday) DAILY BOND INDEX (1926 Average Equals 100)

1947-52 ..civevccccnnes 9 .e 113

is 3a e Un Term 1%8 yy 103%

4s °5 1 Chi & Nor West 4%s '49 >

(Copyright, 1936, by Standard Statistics)

U. 8. GOVERNMENT BONDS (By Abbott, Proctor & Paine)

High, Low. Natl Cash Reg.. 263% 25% grens Bottle . 158% 1562 m Rand 0Ys 20

Bon and E. Fh

mo! 4% Can Dry G Ale. i Coca Cola Cont Bak “A”... Corn Prod Crm of Wheat. . Gen k

G W Sugar .... Nail Biscuit. .

Porto R Sug. 2 Dnited Fruit .... Retail Stores— -

Allied Stores ... 12% First Natl Stores Gimbel Bros ... 14

Woolworth Aviation—

| Aviation Co

101.7 101.6 102.17

"101.31 3

102.30 103.32

Boeing Airc Curis Wright. Curtiss Wr A.. Douglas Air ... Nor Ho AV ..

Spe. Corp 2 United Afr’ at N Chemicals— Air Reduction.. ed

Liquid Carb ... 38 Math Alkali ... Monsanto Chem 97

Union, Carve 96 8 Alco

hg Bristol Myers... Coty Inc

Lehn &. Fink... Sterling Prod ... Un Drug (new). . Vick Chem

. Tonite Prod

Financial—

Alene, eghe 0. A Ey Ci EB:

Tr Contl Corp.. 1 Building—

Am Radiator ... 22 Bs

Ulen CONS .+u0s Household— Col Pal Peet....

eis 9 TP .. 26% . 49% 30 26% 3

Other Livestock To FE He i mpm 0:

*hngion, fo ; $8.75 down

higher, $9.75

Joao Fh Che cpt tle broad for

55 Slaughter pigs:

1 (500-800

PRICES ADVANCE 15 7025 CENTS

‘ON HEAVY Hoes

Top of $11.25 Best Since Early Spring; Market Very Uneven. The highest price paid for hogs

in several months at the local exchange was recorded today when

1 the best offerings brought as much

as $11.25 a hundredweight. The market was very uneven. Values advanced from 15 to 25 cents on weights above 160 pounds with the maximum gain falling generally on swine scaling 250 pounds and down. Underweights and packing ad were steady. * Twice before this month, on July 3 and 6, the top has approached the year’s high. On those dates the best price paid was $11.20. In the Spring the year's top of $11.30 was

‘Receipts 4500 Receipts today were estimated at 4500, with 262 holdovers. The bulk of sales were for prices ranging from $10.75 to $1125 on

| porkers scaling from 160 to 250

‘pounds. Those weighing 250 to 280 pounds brought $1050 to $10.85; others weighing 280 to 300 were cashed in at $10.30 to $10.60, and heavier kinds brought $9.60 to $10.40.

Busigraphs

INDUSTRIAL STRIKES

PARKER 2 GENERAL DISTRIBUTORS INCORPORATED INVESTORS

Strike talk is in the air with the

steel industry the present center of attack. In the recovery period of a business cycle strikes are always more numerous. Of the strikes occurring last year, about one-hslf were called over union organization matters, while only about half the workers who went on strike did so to cbtain increased wages. Although strikes temporarily disrupt production activity, many investors cling to the old adage “Never sell stocks on strike news.

New Bond Issues

(By Lyons & Co.) Bid ASSO Tel 48 "65.cc..covennennns 105% . B & O 4'%s '33 99

Central, Maine 4 Central a 3s se scans vsnve oe 109 *

Cleve Tractor 5s ’45 Columbus Railways 48 '65......1 Com Invest Trust 3%s ’51.. coven

Among the lighter varieties, $10 to So Re

$10.50 was paid for those between 130 and 160 pounds, and 100 to 130 pounders sold at $9.25 to $10. Packing sows were disposed of at $8.25 to $9.25 with a few sales made at $9.50.

Calves Active, Steady In the cattle market, fed steers

‘land yearlings opened slowly. Early

sales were steady with a weak undertone. Heifers and calves were active and fully steady. Bulls were firm, : : Most early sales of fed steers and yearlings brought $7.25 to $8.25. A group of 925-pound yearling steers sold for $8.40, while 1356-pound

. | steers brought $8.50. The practical * | heifer top was $8.50 with a few head

selling at $8.75. Bulk of heifer sales

% | were for $6.50 to $8. Beef cows

brought $425 to $5 and cutter grades sold at $3 to $4. Most saus-

age bulls brought $5.50 to $5.90 with | T

a few moving at $6. Vealers were steady. The bulk of better kinds sold between $7.50 and $8 .

Receipts were reported as 1700 cattle, 700 calves, and 1500 sheep. Lambs were steady with Tuesday’s average, most sales on better grade stuff being at $10 to $10.50 with a top of $11. Sheep were steady. The bulk of fat ewes brought $2.50 to $3. Top was $3.25.

HOGS Bulk.

[email protected] [email protected] Jo.45 10.90 11. 4 21. 0G11.00 22. - i381 25 Light lights {10.160 ) Good and choice. $18. >

Lightweights: (160-180) Good

11.20 10.70

and choice.. 1. 106 1 30

. sail 0.700110

Medium weights: (200-220) Good (220-250) Good Heavyweights: (350-300) Sood (290-350

and choice. and choice.

10.95 10.76

11.95 11.20

[email protected] [email protected]

and choice. d and choice.

5 Packing —

(275-350) Good

) od (275-550) i

(100-140) ‘Good and’ choice. Medium

—Receipts, 1700— i Choice ...... Seavsens $

(1700-1300) Choice BH Soag cones

sse,c00000000 ®cescne

Mediu (1300) “Choice Good

AOR INTIAIN TH -I0 anno S SaaRaSARRSISA

23833 3hzhbkshiasks

Sabo mn 88883

{

| Good Common and med Low cutter and dim Bulls, good Cur, com. and med. bulk.. VEALERS

Sora 33333 ean

09999

: —Receipts, 700— Good and choice Medium Cull and common ...... asses Calves (250-500) Good and choice..... Common and medium Feeder and Stocker. Cattle

so aan 38 888 888 ;ay N=I0

(800-1050) Common and medi

Sua @a & 88 8B 83 aoe

wh cana 8s 3i3h ae

® wor * 8888

(90-170) Good and choice.. mmon and ne um ...... ective July 1, spring as lambs,

{Sheep and lamb. guotation on elipped |

Other Livestock ( By United Press) ores

Maine Metro Ed 4s Minn Gas & E Dis 4s 50 Monon W Dr 4%s '60....... vse] Narragansett Elec 3's ’66.... Niag Falls Pwr 3%s ’66...... Okla Natur Gas 4%s °51...... Qkla Natur as Conv 5s 46... .100

..10 Potomac Ese Pwr 3's '66... Pub Serv N H 3%s 60

y Santiago G & B 4s '65. 30 Cal Gas 4s '65 .

as soaT Wr & Lt 45 '66.......... 99 Wis Pub Serv 4s 61...........

Local Securities (By Indianapolis Bond ana Share Corp) The following quotations do not re resent agthal bids or Offerings, but mere y Didiate Wn buyi: ng ahd ge mar he eS recent transactions. 2 3 or BONDS Ass,

Water Co 4500 | interstate Yel & Tel

5 Kokomo Water Works 5s * Morris 5 & oy Stores 5s ’ Co -104 Muncie Wate 1, Works 58 0 Noblesville 5 H "L & P Sis

1 e 6s ‘47 picker, ¥ w “W 5s ge.

B C Previn oy cxs 0 ses Ben Rall 8Y : Som BRSY

Cent Ind Home T & T Pt W ok Dru

H Union Title Co ses unne *Ex-dividend. som : ————————e CHICAGO GRAIN FUTURES {By James E. Bennett & Co.)

9:00 Wheat Hisn. Low. A. M.

, Ho am Dec. wcoenss a 1.03% 103%

Prev. close.

fats 104%

91% 88% Bll

93% .90 82%

37% 39%

92% 887% 81%

92 88% 81%

.36%

36 38% %

37% 38%

38%

Tou 13

2 70% 10% 2% % Ti

LOCAL CASH MARKET Mo A grain red wheat. are paying 94 cents

grades on Or aie 87 cents and oats, 35 cents. e¥ Ho. 3 vellow

STORE STARTS BUSINESS HER!

Manager Reports Gain in

Sales at Local Sears, Roebuck Branch.

The local store of Sears, Roebuck & Co. is to observe the conclusion of séven years of operation in Indie anapolis tomorrow. The best first six months for any year since the store opened has just been closed, Stanley Ww. Shipness, manager, said today. Sales volume showed a sub- i ——— stantial increase

over the first half of 1935, he

Monday on a $20,000 program to remodel the basement of the Sears, Roebuck

Fi Building at 355

N. Alabama-st. New fixtures are

J being installed

and several departments are being

78 | relocated in order to facilitate serve

ice, according to the manager. ; The structure was erected here in 1929. Due to increased business, & three-story addition was made in 1932 at a cost of about $175,000.

Employs 275 Persons

The local store employs an avers age of 275 persons, Mr. Shipness said. Business growth has necessi=

« | tated employing slightly more pers

sons than were needed last year, he said. Between 6000 and 7000 customers are transported weekly from the Circle to the store by the free busses which operate on 15-minute schedules. .This service was inaus gurated by Mr. Shipness, who has been with the local store since ib opened, about five years ago. The firm also provides two free parking lots for its patrons. : 2 Sears, Roebuck & Co. is cele brating its fiftieth anniversary this year. Besides its extensive mail or= der business the company operates approximately 425 retail stores throughout the country. Mr. Shipness said the company is certain to have its best year in his= tory during 1936. He said that aside from an advance in dollar volume of sales, another current sign of recovs ery is the fact that consumers are demanding more expensive mers chandise than was the case in des pression ‘years.

Produce Markets

The prices quoted are paid for athered in the country, while delty n Indianapolis the price is a Sent hig Heavy breed hens, 1l4c; ghorn hens, 9¢; co Solves Q Splingems, 175-3 lbs, 1 colored sprin and over, fi feathered, Ver Leghorn springers, 172 Ibs and - over 12c: old ducks, white, od 1 geese, full feathered, sli 1% Ibs. and up, 15¢ No. 1 strictly afresh Each full case must wi 55 lbs. gross, a deduction of 10 ph 4 ound under 55 lbs. will be made. P butter 1543 8l2¢c; No. 2, 5G sees Butterfat, 3

(By United Press) OHICAGO, July 22.—Eggs—Market, receipts, 11, 805 cases; fresh grad 21c; current receipts, 18c; 16, Butters extra firsts, 21%c; checks, 17 Market, Ba receipts, 8535 (92 score) Cc; extra Bests geore), 33@33 as "firsts, a 34Y,@34%c; standar Steady;

ns, 293 25¢; :

receipts,

rig ak E 110 ioc Legho

upply moderate: demand fair: is i Cobblers, 1.70@2; steady; | $2; "Colorado Cobblers, $358 2.75; Indiana Dliss gph inia Cobblers, $2.40@2. 50; Idah

Bliss ne 183, [email protected],

1. 0 '| Arrivals, 94; on track, 284; shipments, 341.

TRANSIT INCOME UP

Indicator Drops After Holiday Buf Tops 1935 Week. Times Special NEW YORK, July 22.—Revenues of the transit industry for the week

ended July 11, showed continuing improvement over last year, Transit Journal said, its indicator s at 108.74 as compared with the cor: responding week in 1935. For the week ending July 4, 1938, the indis cator showed 112.80. Revenues continued their upward trend at a rate similar to that June, following the abnormal gain of the preceding week due to occurrence of Independence Day Saturday this year, the magazine said. Gains were consistent all over

the country.

Insured

The Celtic

Association,

$5,000.00.

SAFETY

FEDERAL Savings & Loan

operating under Federal

charter and supervision, offers investors the safety of Federal examination and insurance of individual accounts up to

The dividend declared June 30th was at the rate of 3% per annum from the date of our reorganization, April 30, 1936.

FEDERAL MORTGAGE LOANS -

This association is making long time, Federal, first mortgage loans. modernize with a Celtic FEDERAL Loan.

Tuvest in Celtic Insured Shares

- ACCOUNTS INSURED

Build, buy or