Evening star., 1914-12-24
BANKERS ARE RETIRING
EMERGENCY CIRCULATION
Tax Rate on This Currency Will Be
Increased to 4 Per Cent
January l.
Regional Bank Observation-Disclosures
Declared-Local Bond Market.
Exchanges Closed Tomorrow.
BY I, A. FLEMING.

|
BY I, A. FLEMING.
| Bankers generally are making efforts
to retire emergency circulation before the
advent of the new year, when the rate
of taxation on this currency will be ad-
| vanced from 3ja per cent to per cent
| With the exception OF two or three
local banks, all institutions in the Dis
trict have completed retirement of their
quota. Southern banks are drawing
heavily on their local correspondents for
assistance, and also borrowing heavily in
New York, that they may retire emer-
gency currency, and this fact. with the
preparations for dividend and interest
payments. makes money rather close.
The s per cent rate is very generally de-
manded in making loans.
The total retirement of emergency
currency, as reported by the Treasury
amounted to s127,5S5.727, leaving but a
comparatively small amount of the
total issue yet to be turned back to
the department.
Retirement of this circulation is in
no sense an indication of an easing up
of the monetary situation, but rather
that the tax is reaching a point where
1t is not profitable to bankers, while
the urgency of their needs has been
greatly lesSened.
Regional Bank News.
The rate of rediscount fixed for the
regional bank of New York city has
been reduced to Az per cent for thirty
day paper.
The regional bank of Richmond has
notifed member banks that the section
OF the law relating to credit state
ments from borrowers would not be
effective for an indefinite period. per-
haps for several months. Until the en-
forcement of this section members will
be required to continue making state
ments that, of their own knowledge
and belief. paper offered for rediscount
Is made for agricultural or commercial
purposes. and that the provisions of
the act and the regulations of the re-
serve board have been complied with.
five per cent on commercial paper
maturing in sixty days or less; 81.
per cent on paper maturing within
ninety days. and per cent on paper
of longer maturity. are the rediscount
rates adopted by the federal reserve
banks of Richmond. Va. and Atlanta,
had adopted these rates was made by
the federal reserve board this morning
Dividends.
The American National Eauk will pay
per cent quarterly dividend Janu-
AIRY l to shareholders of record De-
cember 26.
Directors of the Second National
Bank have declared semi-annual divi-
dend of per cent. payable January
l, to shareholders of record December
A semi-annual dividend of 5 per cent.
payable January l, has been declared
by the directors of the National Cap
ital Bank.
New York Market.
The action of the directors of the
New York Central Railroad Company
in declaring the regular quarterly divi-
dend gave more confidence to the OPEN
ing OF the stock market. A little boom
developed in Reading, which rose, from
40 to 1925, and in Union Pacific, which
started the session with gain of IL
points to 115. ST. Paul. too, was a
point better. while New York Central
moved up 1h
This rather unexpected show of
strength was unaccountable for. save
on the theory that shorts were being
ana InlS seemed 10 De
by the subsequent action in Reading
when 1t dropped below the closing of
Wednesday. Union Pacific in like man.
ner lost its entire advance.
Weakness was manifested in Lehigh
Valley for 2A points loss. 500 Line
dropped points and other securities
from fractions to points.
New York Central held it's gain.
The exchange Will be closed tomor-
row.
Local Bonds.
There was but little business trans
acted on the local exchange. Two
Washington Gas 5s sold at 103. and
Potomac Electric consolidated SIS
brought 99&
The exchange will remain closed un-
til Monday afternoon.
State Banks and Reserve System
Members Of the federal reserve board
continue to discuss the admission of
state banks and trust companies to
the federal reserve system and at the
same time are considering the problem
of retirement of one or more state
banks, when admitted from the system,
by means other than liquidation.
1t is said that the board is by no
means unit in it's opinion on the