The Washington times., 1911-04-23

| some years ago, Wnen secuTiueo "eie
very high and money extremely easy.
II became a problem in financial circles
to place funds at respectable rates. Ii
was also brought home TO capitalists
| that they would have to be satisfied
with lower rates OF interest. and 50
| strongly, that incomes were seriously
+, reduced. 1t was even considered that
| the old familiar 6 per cent rate had
gone-some bankers asserting, forever.
That they were wrong, has been demon
strated many times over. We have como
to another period OF easy money and
low rates, through entirely dinerent
| Icauses-inactivity In business and man
| ufacturing endeavor-the minimum of
| speculation in stocks, and with the gen.
| eral public as chary of Wall street and
its allurements as It was in 1901, after
the rise in Northern Pacific preferred
, to $1,000 a share. Business Is held In
check by the uncertainties attending n
shift In party power in one branch of
the Government. by the questioned ie-
gality of the trust way Of doing busi-
| ness and the natural desire Of manu-
facturers, jobbers, retailers and con-
| sumers to be In a position to take ad
vantage of possible changes. tariff and
otherwise, speedily and with as little
loss as possible.
Money Is accYnulating in all the re-
serve centers. and Washington Ia no ex-
ception, although business Is always
fairly good here. there being no manu-
featuring Industry to speak OF, ana the
people are always consumers. The
extra session also helps things In Wash
ington.
But during the last two weeks. Aid
especially during the last few days, the
local banking fraternity has been a
factor in the Washington security mar
ket, seeking Investment OF part OF sur
plus funds. 1t has bought freely OF
high grade 8 per cent bonds selling
around par, shown a preference for the
Norfolk and Washington Steamboat
Company per cents, purchased Kali
way As for short-term Investments, and
has been greatly interested in Washing
ton Gas, and factor in advancing the
latter four points, or from 81 to sS1s.
the best return on the list. and the
market is such that a quick turn is
possible should the exigencies Of busi-
ness demand a return Of funds to reyu-
for money fallen of from business
concerns, but the real estate market is
Of funds.
More and more bankers are going into
the bond business, and exclusive bond
houses are growing numerically less, as
TREY follow the bankers in interchange
OF business and add banking to their
bond trade.
Banks are enlarging their bond
trade for two reasons, the employ
ment OF their own surplus funds to
advantage and the profit that results
from being able to furnish securities
to their customers when the latter are
bankers have given advice to custom
ers and had their own and others or
ders executed through bond houses
Now they are, to a larger extent than
them to their customers At least two
or three Washington banks are pre-
pairing to make their bond depart
ments a special feature. Several bank
presidents are daily on change In
search of investments.
The National City Bank of New
York, the largest in point of deposits
in the United States, recently circu- |
larized every shareholder in the
Southern Pacific Railroad Company.
The Guaranty Trust Company also of |
New York, with S173,000.o00 resources
advertises a list of twenty-four note
and bond issues that II will either
but y point between the sale and
purchase price.
The feature commented on financial
ly, is that the great National City
BANK with It's S3VV,OVV,VVV ItSOuICcS
would consider the trade of an in
vestor with even one share Of stock,
worthy of consideration, such Is the
competition of today.
OF all the central reserve banks. the |
National City of New York, showed the
largest earnings between March g. 1910. !
and March Z, 1911, dates of two calls |
that offered opportunities for almost a |
years figures. The bank named earned
IS, ,497. Its nearest competitor, the |
First National, of New York city, !
earned S,2s5, sS1. The National City |
earned but 1.ss per cent on net funds, |
the First National, 221. Earnings on |
capital and surplus, 1925 per cent for |
the National City, 1886 on the First |
National. On its capital the First |
earned 32.35 per cent. and on its capital |
the National City earned 2.4. Net |
funds compared as follows: National !
City. SeS6, 5SS 900; First National, s149,- |
300, 900. The latter paid % per cent div |
idend and the National City 10 per cent.
In table of comparative statistics OF |