Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-06-18
LOCAL FINANCIAL NEWS.

Whether or not there would be any
change in the market. at least as to the
degree Of activity. when the contest at
Chicago is settled. is not definitely prom
Used or even suggested. At the same time
1t is quite evident that the local stock
market. as we'll as the broader one OK
Wall street. is in a waiting position.
When the common stock Of the Wash
ington Railway Company was called a
good deal Of chaff was INDUCED In
apropos of talk about a merging of the
two street railway systems of the city
The president of the Washington Rail-
way Company seemed to enjoy the with
cisms, and evidently regarded them pure
the current bid on the common stock also
included all the rights in the merger and
that the stock would be exchanged for
Capital Traction preferred stock on the
latter everybody thought it was amusing
While the actual transactions show q
sluggish market, yet in general the money
that finds its way into investment securi-
ties is said to be rather larger at this
years.
The experience of w. E. Lewis, who
represents in this city the bond house of
Lawrence Barnum & Co., is interesting.
weeks he has sold more bonds than dur
ing any previous six months. He finds
that the market here is broadening, and
that there is marked change In that par
ticular.
banks have voluntarily relinduished the
government funds on deposit with them,
and while such action is unprecedented,
yet it is also true that up to this time
banks for the use of money deposited
with them. either as special or as regular
deposits. The recent currency law stipu-
lates that per cent per year be paid
upon all government deposits.
In this city the amount Of such depos-
its is increased at this time for the rea-
son that since the first of the month
some three millions of dollars have been
placed with the local banks. based on the
amount Of their individual deposits which
month of May by the citizens Of the Dis
trict for taxes.
This money is paid back into the Treas
ury at the rate of 10 per cent per month
and is secured by approved securities, not
government bonds. Deposits in banks Of
public funds must be secured. generally
speaking. by government bonds which pay
about per cent interest. and now that
1 per cent is to be paid for the use of the
money the profit to tie banks of such
funds will be diminished to a point where
it will be very slight.
1t is supposed there is at this time of
public funds in the national banks of
the District between $4,000, coo and $780,
GOO. and of this sum at least three mil
lions is on account Of District taxes
and is more profitable to hold than
regular government deposits. 1t is be-
lieved that on account Of the demands
upon the Treasury and the lack of money
to meet them there will not be much
left in the banks of this country in the
Likely that this matter will become enc
that will require action on the part of
the institutions generally.
The reason given by the New York
banks for returning the public money
was that they had never deviated from
the rule of not paying interest on de-
posits and that they did not feel they
could make an exception in this particu
lar, even in favor of Uncle Sam.