Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-06-05
LOCAL FINANCIAL NEWS

Business transacted at the meeting to-
day OF the. stock exchange was not i'm
portant The amount was not large and
there were no changes Of significance.
At the annual meeting OF the stockhold-
ers of the Commercial Fire Insurance
Company of the District of Columbia. held
at the company's ONCE yesterday, the FOL
lowing trustees were elected: w. +. 40
bolt, Louis Behrens. Joseph A. Berbericn'
Job Barnard, Francis A. Blundon. VIII
liam X. Ellis. r. y. Harper. James NJ
Hoge, w. s. Hoge. Charles Jacobsen. n
II. Lynn. Edward Matthews. Maurice W
terback, Frank T. Rawlings and Leon To-
briner.
Doubt exists in the minds of men VINO
have given attention to the suo1ect ..
turned into the United States Treasury
each year and then In part placed IN .ne
banks Of the city. subject to month";! re
turn of 10 per cent OF the totai. Ialls
strictly within the meaning OF the tern,
government deposits in banks as used
in the currency bill. While in sense
this is a government fund, for the reason
the money is paid into the Treasury. sui
II Il money paid by the citizens or the
District for local uses. and the practice
IL
local banks arose from a recognition OF
the wisdom of lessening the disadvantage
to the local market which came from
the total withdrawal from circulation OF
such a large amount of the money OF
the people.
Unlike other deposits of public money.
however. this fund is placed with the
banks only. on condition that 10 per cent
be returned each month. The money while
in the custody of the banks Is secured
ifc nv o. nm
securities.
The matter has not yet been taken up
with the Treasury Department. and 1t is
not known what the ruling will be. 1t is
likely that the local phase of such de-
posits may become absorbed in the general
issue as to all government money with the
banks. However. 1t. is not thought the
national aspect of the matter will continue
for any great length of time to have cur
rent interest. for the reason that 1t rs be-
to national finances that owing to the
falling of in receipts and the increase In
expenditures the government will need all
the money that it now has. and probably
considerable more.
The likelihood of necessity to borrow
money on the part of the government is
recognized. and instead of there being any
question as to the distribution Of the sur
plus among the banks. the government
may become a borrower. 1t Is believed
Cnd1 the PROVISIONS Oh the currency Dlll lOI
an issue of bank notes will put it in The
power of the banks to provide any money
that might be needed without depending.
as was done last year. largely upon the
deposits in banks of public funds and the
issue by the banks Of clearing house GER
tificates.
1t Is the purpose of the banks to form a
currency association in the District. as
the law requires. to which emergency cir
culation can be issued. The membership
of such associations is to be confined to
national banks al is the case with the
clearing house associations.
1t is probable that the association
formed In this city will be at such an
early date as to be one of the first. II not
the first. to be organized in this country.
1t has never been found necessary for the
clearing house association in this city
to Issue certificates in times of money
famine in other cities. 1t Is therefore
concluded to be not question of much
practical importance here as to choice be-
tween untaxed clearing house certificates
and the taxed emergency circulation.
The clearing house certificates are for
local use, while the proposed currency
would have a national function. 1t is
thought experience will show both kinds
Of currency will be used in the large cities
Of the country.