The Washington times., 1912-09-22
I'm LOCAL FINANCIAL CIRCLES
BY I. A. FLEMING.

whN tnat any reform, any profitable
Drought about In this city. In other
cities bankers get together. debate this
or that, and then coming to an under
must come individually or not at ali.
Loans and discounts in Washington
are 1913 pure loans.
There is no disposition on the part of
tne financial and security interests of
washington, so far as known, to oppose
public utilities commission.
There Is opposition, however, to leav-
ing the matter in the hands of the
commissioners Of the District, who
seem to have their time occupied with
The Maryland Virginia Company (the
SO,OoO,OOO capital authorized and $5,0U.-
COO issued corDoration), which. in the
language isnn OF one 1S,, Of the directors. will
chance to come In and unite may Or
may not be able to carry out its plans.
The opposition seems to be very strong
| and yet not unreasonable in requests
for information as TO plans and pur-
poses.
1t is generally believed in financial
circles that the proposed merger plan
has gone too far to permit of aban-
That the promoters will be obliged
to face a Congressional investigation
seems certain, but, a utilities unity, eff
fected under proper restrictions and
with concessions that would benefit
| the people as a whole, might even meet
| with Congressional favor.
That such thing as three-oent
| fare has even been considered Is un-
| likely Street railroad officials have
declared time and again that they
would willingly grant the universal
| transfer system IL they were permitted
10 make a fve-cent rate per passen--
| ger The six tickets for 25 cents. and
the transfers now given by the roads
| making the actual fare about 3h cents
! With universal transfers and 3-cent
| fare the actual returns to the company
would not. be over 2M cents rate
that would not give adequate returns.
| 1t would he practically impossible to
! bring about consolidation of the
| street railways and another of the gas
and electric lighting and power COM
panies, as has been suggested by some
people, for tine reason that divorce
between the Washington Railroad and
! Electric Company and the Potomac
! Power Company would be disastrous to
| the former.
| In the meantime local securities
nave sustained q small decline, owing
| to the publication of the unity plans,
perhaps a little prematurely from the
MsrylRandv virgine EI nhe Ge%Pany. Company " '
ness. Holders of these stocks are
sure of good dividends. the earnings
large and we'll above the averages of
last year Investors who have Wash
Iington Railway and Electric. except
top Of the boom have an excellent
profit in sight.
The entire field of local investments
Is attractive and values are unusually
steady.
And IT, in the end the utilities cor
poration is successful. much higher
prices are assured; II not, the divi.
inflated.
Charles Hall Davis, formerly chair
man Of the executive committee OF the
Southern Commercial Congress. has pre-
pared and submitted to Hon. David Lu-
bin. American delegate at the Interna-
tional Institute OF Agriculture, In Rome,
the draft of a plan for the establish
ment in Virginia Of a rural banking
| system
The plan suggested by Mr.. Davis in
| wolves the establishment of neighbor-
| hood or local rural banks, with small
capital. throughout the agricultural sec
tions of Virginia, 10 be locally owned
and managed. and having certain un-
usual powers. These local banks to
| serve as a means of collecting together
the local funds and making them avail
able for the annually recurring needs OF
the local agricultural community in
preparing and harvesting its crops. A
central rural bank with large capital,
| owned by the local rural banks, to be
established at Richmond, the capital
ana prlnclpal DuSlneS city or the state.
to act as the clearing house for all the
local rural banks, and to perform other
necessary functions for these banks and
for the State.
The most striking feature of the plan
Is the proposition to create farm loans.
running for not longer than fifty years.
| to be retired by small annual or peri
| odic payments out of the profits of the
farm secured by a first mortgage on
farm lands, bearing a low rate Of in
terest. These loans to be made only
after appraisement of the value of the
farm lands by the local rural band, and
to be limited to a certain percentage OF
the value at which the land Is assessed
for taxation. Such loans to be guar
anteed. both as to principal and inter
central rural bank, thereby creating a
new class of farm security, which can
be sold at advantageous prices in the
financial centefs of the world. so that
the capital requirements of the farmers.
, for permanent improvements to their
| property, may be met. Limitations on
the amount of such guarantees and
| numerous restrictions on the operation
of the banks, as well as a provision for
their ultimately and automatically pass
ing into the ownership and control of
the State. are provided: and the careful
supervision of all such institutions by a
State rural bank department, to be spe-
, cially created for this purpose, is out
lined. The plan is elaborated in great
detail and is suggested by Mr.. Davis as
being practical and workable in Vir-
, gtnia or in any other State in the
Union when modified to meet the vary
ing conditions in the different States
From the Nations Business.