The Washington herald., 1913-08-09
BOND REFUNDING
Plan CEVSURED
National City Bank Circular
Discusse: the
Question.
NO SOLUTION, IT SAYS
MeAdoo's Order that Federal Instiiu-
dons May Credit Holdings Of z Per
Cents at Par Criticised.


The National City Bank Of New York
does not believe that Chairman Glass and
his associates have found the correct
solution of the Der cent bond question
AT least the bank seriously questions" {"
in its August circular, ..in view of all
the circumstances, whether the contem-
plated refunding of the per cents into
non-circulation SIS will be of very much
help to the situation"
In a word, it is claimed that 1t is the
circulating privilege and the fact that
bonds can be used as security for the gov
eminent deposits that gives them their
excess value over other low interest
bearing municipal and other high-grade
issues.
The withdrawal Of the rights of other
government bonds, to-wit, their use as
security for government deposits, &c,
VIII, according to the National City Bank,
result IN many millions Of these bonds
coming on the market with probably seri-
Gus losses.
Secretary McAdoo has notified national
banks that they may continue to credit
their holdings OF per cent at par, de-
spite the fact that the bonds are offered
AT commenting on this feature. the
Nauona! City Bank says:
This lis somewhat startling direc-
uon, as the correctness of reports Of
me comptroller must, under the statutes,
pc ceruned under oath by the officers Of
'he panhs making them.
Increascd Bond HoIdfnRs.
7, ,s .,,, ..,.
transso,;nn 81 ot .he oohu
Jn1v ths na, ,Uo,.a. e DanH nn,s,n mat rn
n'i case IA ioiuinss Vi Gos-
bank was sss5,slO. these figures being
sen @ ih reiutation OF the conspiracy
~ ioh Is ealIed 10 the snug mo-
tnae lhe government mas enjoyed
IN se.ihs per cent bonds TO the banks
purposes al ~ per cent
e as an investment Feaii@-
..rS soIe .ilhes as hlsh as o'-
g. nonus' quo'eo Mr.. hepourn
,na 80, ,ie", sehhs al
otsoa m, 80 i.,s EAuoo tooh
tb.sa -. np pri.nese gave
e. ai "oIioi maj 'aiue' nence
n,,roha.'n,, >, 'iie "iiiiost eNe4usi'e
Attan,tan 4. ouos
ha,tls % u oaeu 10 tne iact mat tne
s-oo ooo Ooo . - : n,o ~ 90 ooa 80 20 .iie
ritoriai 49, ao,an;. naNe a '. se'vOVV ler
that tbese Ia,riar;aI 80 % Sona' anu
the nri,;Io, SaS. ot
100 19aInS 20 e. ms" "s
"If tbass 80 , ~
drawp fron, Sarcsi.ar,, aaI.
nroyisiop r,.5a e. nso.a. -. IL ~
nrobIana,ic whara ,ha,, Ill, eii., =.
Ia ..uo,5 vii s'
also realize Tho, ,ho Traa.,,re .t
autborit,, % So s,oo 90 90 p. .ao
70 rsir,b,,,s. tha .ra,r' S...,n, - -,
for a5yopc.. a., ,roo,,,,. =. - -.
Canal"
n..
The Nationa, Git, R,,l, .o,rad;,. c.,
retary NcAdoo with b.Ini,a a. -.
for 2 Der cent bonds by bis .ctio,, ;, a.
easing deposits in banES Nv sS5 nao noo
to s5O.Ooo O1O
Anent the faeIipp n, ressrt,,o,. 8,
Washington noIiticaI circIes 60 ~ .I-
legged maninuiatione thai ca,,SaJ ,ha ~,
cents to dron the banl, c,rcu,ar s,ys
"Tbere have been ran.yv,6 a,-i5oacs: .,
irritation AT wasbineto, hec.rsa ~ ~
decIine in the nrice ~ non6s IT. g.
retarv Of tbe Trea sur,, savs ho ho,ia',o.
a consniracv exists in S.n, VI - 80.
tbe crrroncy Ie,isIat,or h., ,Li ~
The secratarv,s .sssrtror. 80 ~,
by detaiI ., a., .o-t IT,
Innort.nce ana ora,,;t,, ot ~ cho
make il ir,nersti,o tb.I I'M ,;at. sto,5s
he tbrown IN ths snhtaot Pean,,sn ~
hanks ~ ,bs coun+-y -. III oo,,s,,..
their bond ,ransactions ,trn,,., ~,
yort inst;tu,;ons ,rao.ioo,I,, ~,
-, .' aii u