Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-01-20
LOCAL FINANCIAL NEWS

A new and rather unique feature OF the
national bank system IL proposed by
Pennsylvania banker. who has embodied
his ideas in a circular. which has been sent
to bankers generally with the view of elicit
ing opinions. The proposition is to pro-
vide for the insurance of bank deposits.
The author states that during the past
forty years, since the national banking
system has been In operation. the total
loss Of depositors amounts to less than one
tenth of 1 per cent per annum of the total
deposits.
Now IL the banks were required to pay
to the controller of the currency" the
writer states. IAN annual tax OF that
amount an insurance fund could be estab-
lished and maintained. When a bank fails
1t could be made the first duty of the
ceiver to balance depositors' pass books
and certify the amount due each to the
controller. who should Immediately issue
his check on the insurance fund for the
amount due, and whatever was realized
from the bank s assets could be returned
to the insurance fund
And now will show that the depositors
themselves would be indirectly the ones to
establish the insurance fund" To accom-
plish the latter ii is proposed to reduce the
reserve fund from is per cent of the de-
poSitS to IL per cent. and the 2 per cent
thus secured invested at ) per cent would
yield, Ii is estimated. just the amount OF
the insurance tax
IN fact" the circular adds. "a reserve
OF even Ii per cent would not be necessary,
as such thing as run bank would
be unknown. All the reserve a bank would
need would be sufficient funds to do bust
ness"
An Illustration of the careful attention
which Is given to the management of local
financial institutions the published abstracts
or the annual reports of three of the trust
companies show that the expenses were less
a mt of hx.
Washington railway bonds and stock and
the certificates and stock of the gas COM
pany were the securities mainly dealt In
at today's meeting of the stock exchange.
higher level was reached as compared
with the prices of yesterday.
Inc railway bonds sold at &c, with one
lot of 1.Go0 at 1875. and at the close they
were offered at 76h with 76 bid. The
market seemed to be some what limited
and one of the brokers who offered bonds
To- sale was also purchaser, and II was
on the latter account that the transactions
reached the number they did However
the buying element was in good force and
the upward tendency which has been a
marked feature of this security for some
weeks was not checked.
A number of transac actions were made in
Washington Railway stock, which sold for
1913 and AN, with one lot of fourteen shares
at 4Ih
There was more doing In the stock of the
Capital Traction than usual but the de-
mand was mainly for fractional lots. very
small lots, rather suggestive of record
makers than anything else
There were only two lots of ten shares
each sold. the price paid being I2lA and
l21k. For the smaller lots the prices
ranged from 121x to I'D.
1t was evident that the prevailing prices
for gas certificates were looked upon as
favorable for purchase. as a large GUAM
tity was bought. Lots of $1,000 each
brought 113zs, and as the Offering con-
tinued to be made at that figure The buying
was quite brisk
1t did not. however. outlast the Offering
and the certificates were still offered with
out result
There was large block of Gas stock Of
fered for sale at 56A and then at 561s and
two lots of twenty-five shares each were
taken at the latter price.
There was further demand at that
price. although the stock continued to be
offered. One hundred shares were offered
al So and that amount was sold, and the
offer was continued without result
Then the price went OFF to 55Z and then
to 55A. The offering Of 100 shares con-
tinued at 55A, but there was no bid
higher than ssh.