The Washington times., 1911-08-06

| smaller savings banks, are represented
on the membership roll of the District
! Bankers Association. 1t is believed
that so soon as the examiner has been
! selected and the member banks begin
to advertise the fact that they are un-
der espionage of the District Bankers
| Association examiner, the non-members
! will make haste to come in.
With practically complete member
ship of the banks, it ought to be an easy
matter to take up some of the reforms
that daily stand out as necessities of
some day. The inter-relationship Of de-
positors in this city is such that cour-
tesies are often accorded and consider
alton shown where they ought not to
be, simply because an uncle. aunt, or
cousin has a good account and might
resent a square rundown to the rela-
tive. Moreover. the fight for deposits
is so fierce that consideration is shown
many an account that Is short of pay
ing for its own handling-in other
words, where the bank is used as an
accommodation, without monetary con-
sideration for the work involved.
1t is high time, also, that the bankers
secured recognition by New York banks
as a free" city; that checks drawn on
Washington should not be charged COL
lection fees through New York. Some,
probably many, accounts of army and
navy officials are carried in New York
and Baltimore because no charge is
made for collection.
The registration of the stock of the
Washington Gas Company with the
American Security and Trust Company
d, ~, fIn rfarhf
1t absolutely prevents fraudulent stock
issues; not that it is. at all likely that
there would ever have been any, even
without registration, but it is a safe
guard.
Moreover, instances of fraudulent is
sues of securities are not unheard of by
any means. 1t would be we'll for other
companies to follow suit. giving added
assurance to the shareholder.
This brings up the suggestion of the
erstwhile plunger, Patten Of Chicago,
who urges the registration of COM
mercial paper with a trust company as
the safe and sane way of preventing the
issuance of fraudulent documents. This
suggestion emanated after the ex-
posures Of the late head of the Chicago
branch of the peavy Grain Company
of Minneapolis and Chicago
A big borrower, in self-protection and
in protection of financial interests
really ought to have his and its paper
bear the atteSted stamp of a trust COM
pany as registrar. Under such circum-
stances there would be no chance of a
corporation waking up some morning to
find itself called upon to assume obli-
cations involved by acts of its agents
or Of banks meeting serious losses
through the purchase Of paper that IS
not what 1t purports to be- Registra-
ton ought to facilitate the sale Of paper
Wonder will the banks loan any more
on Georgetown Gas at Us than they
would when 1t was 100, or even when
it was IS?
There is field right here in Wash
ington for educational work. Invest
ment brokers should make 1t point TO
educate capitalists at home and else
where with the great value of local
stocks ami bonds; with the special
features Of Washington investments,
the utter independence OF the Federal
City from the rest of the world, and the
weIl-known fact that II enc has faith
in the United States hey must have
like faith in the city Of Washington.
That Wall Street may squirm In the
grip of tight money; in the enforced
iinuidation Of stocks; that the railroad
Investments may shrink in value be-
cause of poor crops. st>es, etc, that
Industrial corporations prosper or other
wise as the business OF the United
states swelIs or wanes, while Washing
ton Investments continue on their even
way. Welding the same or greater re-
turns from: year 70 wear, and the city
groTs and Is Influenced by none Of the
happenings referred to.