Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-17
LOCAL FINANCIAL NEWS.

The change IN the character OF BUSINESS
as now carried on, especially as TO its vol
une, is indicated to some extent by tina
efforts made from time to time to increase
the limit in the amount of loans allowed
under the national banking law to single
individual or corporation. This imit is 10
per cent of the capital stock. and 1t is
maintained that 1t Is too low to allow in
dividuals the money they need simply to
meet demands that are not unusual In the
ordinary course of business.
In the case of a national bank having
capital of 100000 the amount that can be
loaned to any one individual or corporation
Is $4,000. and In these days 1t Is asserted
such loan limitation Is apt to interfere
In transactions to an extent that would
not have been possible some years ago,
when things were on a smaller scale.
To overcome this difficulty the capital Is
increased. and this explains in part the
movement that has been 50 general among
the banks Of the city during the past few
years In enlarging their capitalization. The
same thing has been going on elsewhere,
but it seems that the change in the size
OF business transactions is not adequately
provided for In this way. and now 1t Is
proposed to make the basis upon which the
percentage of the amount of individual
loans is calculated not merely the capital
stock, but also the surplus. A bill to that
effect has been reported by the House COM
mittee on banking and currency.
The stocks of the Washington Railway
and Electric Company at today's meeting of
the stock exchange were TO be had at
lower level than was the case yesterday,
but there seemed to be no market for them
at the prices, which We're fractional recess
sions from yesterdays figures.
The principal trader in these securities
had them for sale, and in the case of the
preferred offered it down as low as as $685.
while yesterday the asking price at the
close was S9A. The buying today. IL that
fnrvf, ca,,lI Il, L. rs hn
order that seeks to find a safe distance.
and that seemed to be So, and no advance
was made on that figure. The broker who
apparently had stock for sale, and some
fractional lots went for S9Ia. kept offering
the stock down until he reached the level
above referred to, when he evidently be-
came discouraged of reaching buyer, and
gave Ii up.
The course in the common stock was
much the same, as the pursuit ofNthe elu-
sive buyer was continued and the stock
was offered down to Al. falling off OF
hve-eighths of a point, as compared with
the closing asking price of yesterday.
Several lots were disposed of range
of from AIS to 4OA, and at the close the
bid was 401a and the asking price Al. How
much of the stock in either case was for
sale in the event any market had been dis
covered, 1t Is of course impossible to say,
as no test was made.
The usual bid of 80 was made when the
stock of the Bank of Washington was
reached, and 1t was greeted with a rather
unexpected response of sold" The buyer
kept rather shy of another bid on that
level, but when an Offering of ten-sfare
lot at 5l2 was made he at once took it.
The stock was then offered at three points
in advance and was finally withdrawn. The
bid at the close was sos and the asking
price was named at $50, but after the call
a couple of lots making seventeen shares
in all, sold for $40 and $50
The prices paid We're about what has
been paid in recent days for this stock.
and 1t is supposed that advantage is be-
ing taken of the present level on the part
of a few stockholders to dispose of their
holdings. However. the stock is pretty
strongly held and while there are only
1000 shares all told. still it is widely scat
tered throughout the country, as the fam
lilies that have had it for so many years
have broken up and gone away.
The plan for the increase In the capital
stock of this bank is to be carried out when
the consent of two-thirds of the stockhold-
erS has been secured and it is said that en-
couraging progress is being made toward
getting signatures to request of this sort
which is to be presented to the directors.