Evening star., 1914-11-19
HIGHEST GRADE PAPER"
FINDS MARKET HERE
Acceptances Of National City Bank
Are Purchased by individuals
and Banks.
Drawn by South American Export
ers-Financial Notes and oossips.
Dividend Declared.
By I. A. FLEMING.

Commercial paper of the very high
est grade and in the strictest conform
ity with the definition Of this class Of
security made by the federal reserve
board has made its appearance in
Washington.
Paper. too, that is new in this coun-
try, bringing to 1t the character of
European operations in "acceptances-"
Application was made by at least one
large trust company and one or two
individuals to the National City Bank
of New York city for paper of this
description, and the bank sent its own
acceptances at three months on conee
consignments from Brazil, bearing 4a
per cent interest.
In the case of at least one tndiViouai,
the paper represented the fnVestmene
of q certain sum of money Tor Whicn
he had special use. after the expiration
of the three months. and the interest
was better than savings bank rates,
while in the event Of urgent need y.
funds the paper is the easiest klnd OF
security on which to borrow AT any
bank, and it Is also rediscountaoie IN
Acceptances Of this character are ex-
cellent Investments for banks surplus
funds for the same reason that tney
are desirable for individuals
AS a usual practice excess funds mo
employment In the call loan market in
New York, safe, readily collectable fre-
ouently at very remunerative rates
But the average rate Will not exceed
AZ per cent year in and year out
The movement Is a step in the way OF
tween business interests in the United
States and South America In tnat II
gives to the exporters OF the latter
country the needed credit accommoda
tion formerly extended by European
bankers.
Washington bankers are also buyin
considerable quantities of high-grad'
commercial paper on per cent
basis.
Under a recent ruling OF the Treas
houses, with certificate attached tha'
the proceeds will be used for CONNER
cial purposes. are admissible to redis'
count in the federal reserve system
The original ruling would NOT nave
made this class Of paper eligible for
rediscount.
Higher Rates for Commuters.
The Baltimore and Ohio Railroad
Company announces it's intention to f1le
| schedules within a few days calling
for higher rates on communication tick
cts In this district, Baltimore ant
| HAA $50
| with probable action by railroads gen
orally, on the suggestion Of the inter
state commerce commission In the rate
case opinion that the charges might bt
advanced and that revenues might bs
| increased by additional cost OF mileage
| books.
Financial Notes.
Frank E. Ghiselli, assistant cashier
of the Commercial National Bank
has been chosen a director of the Ex'
change Bank and has signified his ac'
ceptance.
The Anacostia Bank has declared it
regular semi-annual dividend of 4 Del
cent NJ. Otterback, cashier OF thu
bank. has just returned from three
week vacation spent in Montana.
| Bankers have given assurances tha
sufficient money for a call marke
would be on hand whenever the ex
change was opened for unrestricted
trading.
| The Chicago Stock Exchange will re-
open Monday morning for ''unrestrict.
ed trading at the prices of July 80.
which Is about as much restriction al
would be necessary for all exchanges
to throw open their doors. 1t viii
| be Interesting to watch the trading in
| Chicago.