Salt Lake Telegram | 1932-07-20 | Page 2 | New York

NEW YORK By fly James McMullIn Local bank officials are feeling quite chipper over th the latest reports of the federal reserve banks and of the he member banks in the New York district The reports show tour lour encouraging encouraging en en- features Currency in circulation dropped by 61 million dollars compared to a l drop of 33 million in the corresponding week a year ago This indicates an absence of serious hoarding Along with an increase in the gold supply the federal reserve banks in New York and Chicago put about 42 million dollars more in gold behind theIr heir federal reserve notes replacing government bonds hitherto used as cover This amounts to operating the he Glass bill in reverse It makes the the banks an s f feel a bit i happier and more confident 01 ot me mc suture future Member bank reserves in the New NewYork NewYork York fork district 40 million dollars reversing dollars reversing the trend of ot the past two weeks Loans on collateral other than securities securities se so- increased by 30 million dollars in n the New York district This means that hat the campaign for the use of trade acceptances has gotten under way with vim and vigor On the other side of the picture New Tew York banks disposed of 70 milion million mil mil- lion ion dollars of government securities last ast week Governments are beginning beginning begin begin- ning to lose some of their star five-star popularity New York banks which carry small checking accounts have lost a lot of them hem since the check tax went into fleet effect Banks with high minimum deposit requirements requirements' 2500 in one onease case ase have noticed no difference a a a According to an experienced observer ob ob- server erver the recent strength in the bond market has been as spontaneous as ashe the he cheers for Hoover at the Republican can an convention Something had to tobe tobe toe be e done to pave the way for the new new Issues floated this week Sponsors of these new issues were pleasantly surprised at their favorable favorable favorable favor favor- able reception If they didn't sell exactly like hot cakes at least they I didn't stick to the pan There was skillful promotion especially behind the he Consolidated Gas issue Even the Boston Elevated issue which took more selling than the rest was not as sticky as it might have I been een Buyers were asked to swallow more new bonds in two days than they had been offered in the thc previous two mouths months Fears that the swallowing apparatus had atrophied proved groundless a a a aNew New York gets the dope that the banks janks will take care of the maturities of the Insull operating companies tern tern- No attempt will be bl made to sell term long-term bonds before next month Disintegration of the Insull proper proper- tics Ues is proceeding rapidly with the receiverships for National Electric Power ower and National P Public Service The New York Trust company may acquire some of the operating sub sub- a a a Associated Gas and Electric is hay have lag ing ng its troubles It is trying to unload un un- load oad 25 million dollars worth of at New Jersey Power and Light bonds on Its present resent security holders The idea isto is iso to o take care of maturities let for three other subsidiaries Chances for tor success success suc sue cess arc not too good