The Washington times., 1911-10-01
IN LOCAL FINANCIAL CIRCLES
BY I. A. FLEMING.

In its monthly circular of even date
Eays:
while we are apparently so much
stronger than any other country in the
metal, which all the world recognizes
as the basis Of credit, Ii Is to be Ia
mented that our banking system is so
defective In providing for its use that
We do not enjoy the stability and pro-
lection which this superiority should
give. We are far past need for anxiety
about our gold reserve, but II is still
the most ineffective reserve in the
world"
Is it up to the Comptroller to decide
whether city has a sufficient num-
Der of banks and banking capitaIo
Under the national banking act, no.
When such and such conditions have
been compiled with, the Comptroller
of the Currency shall" 1t is a
strong little word.
Yesterday was the last holiday
Saturday on the Stock Exchange
There have been other days besides
Saturdays in the past two months
when the exchange might just as well
have been closed as open for all the
business transacted. Then again
there have been Saturdays when a
fair volume of business might have
been recorded had the exchange been
open.
Just at present the market is not
active, yet it presents its usual firm
front when markets elsewhere have
been crumbling The investors of
Washington know their their securities sGar t. as
They have found dividends and inter-
est payments made with regularity
and the increment through rights an"
enhancement Of market values has
Of ThnrnfnFa
they hold to the local market.
Naturally with the disturbance in
the security world. the serious slumps
in New York stocks. sales have not
but natural that the investor willing
10 employ his money in stocks at this
time should expect concessions and
the retrocessions here have not been
anything to cause any worry or great
loss to buyers at the higher prices of
few weeks ago. Just modest re-
cessions
With only modest supply Of
stocks. there is likely to be quick
rally on any. improvement in the Sc
curity situation.
Canada is the second best buyer of
AmerIcan-made products. The United
Kingdom alone exceeds Canada's pur-
chases, the score for seven months end
ed July 81, 1911, being Sl67, 10000 for
Canada and s210,OO0,00 for the Unitei
There Is some money in the national
banks of the United States, Sic, 3T9, ,4Sg, ,3S3
total resources, and like liabilities, OF
the latter, s., ass, OH being due to in
dividuals for deposits. At the same
time, the United States had $35, ,279, 211
in the bands. State banks and privaty
banking companies had $54, ,Ii5,S9l, and
trust companies and savings banks
S546, 5000 in the 1901 national banks.
The banks held $I6, ,25O, ,0VO above the
legal reserve requirements.
1t will be recalled that the banks
of Washington lost So, 900, 900 between
the last two calls and gained S3.7OO.-
900 between the calls of September !.
1910, and September l, 1911 Thi
ratio of increase has been well main
tanned all over the country.
Same comparisons show an increaSc
for all national banks of 1896. .250.4.
in leans. s4S.790.369 in cash. and
S554,336,644 increase in Individual de-
posits. And the last year has been
one of decreasing business increasing
cost of living and diminishing profits
generally in commercial and mercan-
tile life
Certainly it has not been due to
the financial status of the country.
What then? The Sherman antitrust
law and the disposition to investi-
gate, harass, and irritate.