THE MICHIGAN
DAILY
.....,.. x
PRESENT STOCK MARKET SITUATION
EXPLAINED BY PROFESSOR LEFFLER
"The great question regarding note what effect the meeting of
the precarious situation of the the board of directors of the New
stock market prices at the present York Federal Reserve Bank today
time is whether or not the federal will have on the action of the
reserve board can exert sufficient banks in the New York money
pressure to limit speculation and market and consequently on the
cause further decline", declared 1prices of securities.
Prof. Ray V. Leffler of the eco-
nomics department.*
"The whole situation must be
traced back much farther than re-
cent days," he, continued.. "First
of all, it is to be remembered that
when a broker carries margin ac-
counts he must go to his banker to
borrow a- great portion of the .bal-
ances of those accounts. Call loans
are used for this purpose. These
loans are subject to cancellation
any day by either party concerned
and are made up of the bank's own
funds, funds of correspondent
banks, and corporation surplus
funds. When the demand for these
loans continues great at the same
time the volume of trade increases,
there may arise a situation which
distresses the Federal Reserve
board.,..
Board Issues Warning
"That is exactly what has hap-
pened. The Federal Reserve board
felt that since so much money is
being utilized for speculation,
there might not be sufficient
money available at reasonable
rates for spring business. And so
it issued a warning recently sug-
gesting that commercial banks re-
duce loans for speculative pur-
poses.
"Thus is can readily be seen,"
Professor Leffler continued, "that
the change in the relative supply
and demand of call money with
exceedingly high, rates, the bull
market with its high level of prices,'
as well as thevwarning of the Fed-
eral Reserve board had a hand in
Ithe recent precipitation of stock
values,",
Professor Leffler stated that it
will be extremely interesting to
To Show Free Movie
For Students Today
Free motion pictures are to be
offered the student body at 4:05
o'clock this afternoon, under the
auspices of the School of Business
Administration, it was announced
yesterday by Prof. Carl N. Schmalz,
of the department of retailing and
advertising, and assistant director
of the Bureau of Business Re-
search.
"The Story of Fire-Clay Refrac-
tories" is the title of the four-reel
picture which makes up the entire
program for this. afternoon's pres-
entation. All persons interested
are invited to attend.
Aeronautic Quarters
Are Greatly Enlarged
An indication of the increasing
importance of aeronautics at Mich-
igan is the enlargement of the aer-
onautics department's quarters in
the West Engineering building.
Within the next three weeks con-
siderable storage space will be con-
verted into a large drawing room
and an office to supplement the
crowded facilities that the depart-
ment now has.
That this additional equipment is
merited is attested by the aero-
nautics professors and by govern-
ment officials.
Grounds Supervisor
Explains Excavation'
"We are not going to erect a new
campus building at the corner of
State and South U," emphatically
declared E. C. Pardon, Superintend-
ent of the Buildings and Grounds
Department.
Several professors and others who
fear for the beauty of the campus,
have inquired about the reason for
the excavations that are being
made on the Alumni Memorial hall
grounds.
To these inquiries Mr. Pardon re-
plied: "The B. and G. department
is merely removing the top soil
from the Alumni Memorial hall
grounds, so that fresh rich dirt
can be placed there to encourage
the grass to grow.
When the building was completed
in 1908, the contractors covered up
the debris remaining from the con-
struction work with a thin layer of
soil. When the fertility of this
layer was exhausted grass ceased to
flourish. Buried slate, stones, and
cement could not furnish the neces-
sary humous, so the grass crop be-
came null and void.
"We want to enhance the beauty,
of the campus, not mar it by the
erection of a corner building," Mr.
Pardon concluded.
Selected As Queen
At Iowa University
.I
Selected as the most beautiful
and most popular co-ed on the
University of Iowa campus, Miss
Dorothy Gillis, of Osage, Ia., has
been crowned Mecca queen of the
University.
!././1.Jl/: "11./ /./~a/', . m 1', ./lIJ"1' ~ /" P1 .P. "../",6'./".®./ .i'./l/ .P.P./"./"./"1l.I"".!. lr .
HEINE'S
BLEND
This old Dutchman
needs but one intro-
duction, for he is a
life-long friend' to
all who know him.
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Scandal!
It was
so obvious even they were
dumfounded
a
Pafht Picture
F rrmrr atE3s-Pr.,,_:
d 1fl ?r
i
I
aer Over Lare ii at ' yY ttoi o~
aa:leo, Where he, tilo Afford
Eritr*Jiie or Caph.Itav t AvaI
;0G"Y WITH TROOPS RIINP
Vf0s to riwnota xolhaj
1~itat. 6heoarm" I$**
t o h: ihm.tr . s. woo ie.,;¢ric' q' '
be.r y Y -
,a00r INl.De 1 ..
nt eslietoenhon
The news ft-tbokie like a houealiiiV APPOneTMENTSa
I.
ON THE STAGE
Twin Stage Bill
Ge].$road urst &Co.O
YYo
in
A Singing, Dancing and Comedy Skit
"MAKING MERRY IN A NIGT CLUB"
ALSO
EVANS &, MATER
"The Cowboy and the Lady"
Note:-EVANS & MAYER were bonked at the reauest of a group of students who
"CuU't th IIr Atth IIsa~ 1ha~r-iri1fr~t
I
v
I i
11