Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-08
LOCAL FINANCIAL NEWS.

Considerable interest Is taken, especially
by brokers. in the bill recently reported to
the House by the District committee, ana
which. after debate, was recommitted to
that committee. The purpose Of this meas
ure 10 to bring all persons engaged in bust
ness that involves the taking Of money
from the public in the form of deposits
under the supervision of the controller OF
the currency. At least that Is one view of
1T, while on the other hand. 1t Is said. that
the scope may extend to stock brokers.
This measure was considered at meet
ing yesterday Of the Washington Stock Elk
change, and a committee composed OF Br1ce
Paris was appointed to make report
upon the subject at some subsequent meet
ing. One of the exceptions taken to the
bill. not only by members of the exchange,
shown in the debate is the provision Of
fered as an amendment which exempts
from the proposed law any person, hrm or
company regularly licensed to engage IN
the business of private banking In the Dis
trict of Columbia prior to the first day OF
January, 1906"
It is claimed that there are now four
concerns in this District which would come
1t is argued, the proposed measure, as far
as this exemption goes, is class legislation
and discrimination In their favor. 1t Is
the belief of some that this law might
though the latter are not now licensed to
do business as bankers. 1t Is estimated that
there are outside Of the four referred to
some thirty-sfx persons and firms doing
business here as stockholders.
In the event the proposed law is made
to apply to stockholders then, 1t Is claimed.
an advantage would be given to the private
bankers referred to. as among other con-
the business Of the latter would
not be open to the inspection of the con-
troller's Office or be the subject Of regular
reports to that off1cial.
1t is thought that the purpose OF this bill
as whole Is to round out the legislation
of June last, which placed all Incorporated
institutions at that time not under
public supervision under the control Of the
controller OF the currency. The contention
Is made that the bill applies also to stock
brokers. who. under existing law. are not
licensed as bankers, but who-receive money
on deposit from their customers to make
purchases OF stock or who have money
retained from sales.
II ockbrokers are construed as coming
under such a law, then 1t would be neces-
sary for all engaged in that line Of business
to organize with capital Of not less than
100000, with not less than five persons to
form the association contemplated 1t is
claimed that II such Is the intent OF the law,
as the business OF the stockholders is large
ly confidential and as his customers would
not care to have their transactions in the
market exposed even to the knowledge Of
the examiners of the controllers office, that
the proposed measure, even when freed
from the feature above referred to, would
be hurtful to the business.
The suggestion is made that some dis
tinction should be drawn between the bust
ness of broker and that of a banker. There
is no objection, SO it Is said, on the part Of
brokers to a law which will apply only to
the banking business.
There was nothing Of consequence which
developed at the meeting today Of the stock
exchange. The volume of business was
about the same as has been the case for
some days past and no special interest was
shown in anything on the list.
Today's Government Receipts.
National bank notes received today for
$1,17317S. Government re-
ceipts: From internal revenue. $500 1858:
customs, 81, 19O.407: miscellaneous. $780,
OIL. Expenditures, $2,26O,OOO.