Evening star., 1914-11-07
MONEY RATES STRONG;
DEPOSITS SHOW GAINS
Net Increase From September IL to
October 81 Over $748, ,O00-The
Local Situation.
Railroads Inaugurate Economies
Call for Cash on New York
Bond Sale-Gossip.
BY I. A. FLEMING.

Bankers a rule are not lendlEG e
much money these days. especially H.
Stitutions that confine their operations
| entirely to collat eral loans.
| Every effort is being made to Keep
the brakes on speculation. commercial
banks are caring for their customers
| in business, but no announcement IS
| offered to any one to engage IN ne"
ventures. There is some money ready
for real estate. but the lender picks and
chooses and the proportion of value 10
| loan has to be higher than usual.
AS for collateral loans, an extremely
small percentage of new loans are be-
| ing negotiated. Bankers are carrying
| the collateral loans as of July 3o'
though many reductions have been
made, but new loans are not wanted
at all freely.
| Banks in various sections of the couh-
| try have been materially alded pS
Washington bankers. especially IN the
nearby states, with considerable money
to banks tied up with cotton loans:
Then too. Washington banks nave
been called upon by Secretary McAdoo
to pay $1,750,00O for the gold and cot
| ton pools, and this cash. while not an
in actual use by the pool managers is
at their disposal. Even the smaller saw
ings banks have been asked to make
their quota of payments to the cotton
pool. and to their credit they have re-
sponded. just as have the national
banks and great trust companies.
Washington money savers have been
busy. Between the two last calls the
total deposits show gains of $74S.01s.
This. too. despite the repayment of
much money by certain national banks
to the government account of taxes
deposited. etc. This would have no ef-
feet on the savings. but a radical re-
duction in total deposits resulted there
from. But for these payments the total
deposits would show nearly a two-mil-
lion dollar gain.
Inaugurating Economies.
In the event of failure of the inter-
state commerce commission to give the
asked. there will be nothing for the
managers of the properties to do but
cut down expenses. Western roads
have started the consideration of the
subject and propose in the near future
to make a charge for folders, which
have heretofore been given away with
lavfshnesS, the charge agreed upon be-
ing 2 cents. Judging from maintenance
and upkeep reductions during the past
year a system of rigid economies could
not be enforced that would not be dan
gerous to safety. unless in the line of
the cutting off of the luxuries that
have been added to travel of late years
and the travelling public would object
to that.
The interstate commerce commission
yesterday gave to the railroads of the
United States corporation classifica-
ton as common carriers, which will
mean large profits to the Steel Corpo-
ration, Commissioner Harding dissent
ing.
May Join Clearing House.
The Philadelphia clearing house COM
mittee had under discussion at its regu-
lar meeting yesterday the advisability
of admitting the federal reserve bank
to membership in the clearing house
The subject had been previously
broached to the committee informally
by Charles ]. Rhoads. governor Of
the bank. AS the reserve bank will not
at the outset have the facilities for
clearing checks itself, membership in
the association would probably simplify
matters both for the reserve bank
officers and the banks themselves
Should the reserve bank become g.
member of the clearing house it would
necessarily have to do so on a differ
ent basis from ordinary banks, as it
could not be subject to the rules and
discipline imposed on other institu-
tions. Eventually, it Is expected, the
reserve bank will usurp the main func-
tions of the clearing house and that
the latter will become of far less i'm
portance than at present, as would
clearing associations in all states
Financial Notes.
One hundred state banks have filed
application for admission as member
banks of the federal reserve system
]. P. Morgan & Co. have called for
S16765,975 on account New York city
bond subscriptions Payments thus far
total 55,449,005.