Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-26
MONEY SUPPLY LARGER,
But RATES ARE FIRM
Return of Crop Funds From West
Reported-Bankers Check New
Enterprises.
Millions Lost in Dividends Passed
and Deferred-Further Decreases
in Rail Earnings.
BY I. A. FLEMING.

Money is flowing back from the west
ern and northwestern crop sections by
the millions. but as yet there has been
no noticeable effect on money rates.
AS a real matter of fact, it is not so
much the question of plenitude or
cash as it is of disposition to con-
serve resources, a tendency to the ui-
ira conservative, and to strengthening
fiscal institutions as much as possible.
and the trend is likely to be furthered
by the announcement that the federal
reserve banking system will be put IN
to effect three weeks from today. No
vember is.
bankers is directed very strongly IN
the line of checking new enterprises
or directed exclusively In legitimate
channels, without expansion
While the new banking system vii!
become effective November 16. 1t will
not reach it's full effectiveness un,ii
after the end of the year, for the hrst
call on banks for capital payment is Tor
but per cent, where per cent VIII be
three years before the full reserves
required will reach the various district
banks, as member banks will hold on TO
their interest-payEng connections JUST
as long possible: ana yleid Only WITCH
time limitations compel
Based on the actual figures of the
returns of September. made by national
banks to the controller of the currency;
and the new scale of reserves required
under the federal reserve law about
s274 900 900, heretofore carried as re-
serves. will be released for use IN
other channels according to an esti-
mate by the controller. Secretary NC
Adoos estimate, placed at S4oo.ooo' is
considerably in excess OF the con-
| tro1ler'S.
Against Opening.
One of the strongest reasons for not
anticipating the opening of the New
York Stock Exchange before January
| l, 1915, is found in the fact that the
banks oppose it. and further in the op-
position of all the great insurance cor
porations. which are DESTROYS OF lnven :
torying their security assets on the
| basis of the quotations on the last day
| of the regular sessions of the exchange.
July 80. 1914.
| Losses on Income Taxes.
| Since January 1, 1914, 178 corpora
tions have cut, passed or deferred &C
ton on payment Of dividends. OF this
number 81 have passed or reduced dis
tributions. The rest have deferred"
and in the majority of these instances
it will mean probably just about the
| same as passed. If there are no further
| additions to this list and coming divi-
dend periods bring the same results the
| cost to shareh olders will be 1920, 100000
per annum, forcing economies on the
we'll to do and cutting off many con-
| tribution of surtaX to the income tax.
| These dividend losses have been paid
| Of Sfn
Moreover the figures on the deferred"
dividends are not included. The corpora
lions being given the benefit of the
doubt. they will pay later on and not
dividends over $4,707. 900 are involved.
| In this list twenty railroads have
passed dividends or made reductions
on various issues of stock. and the loss
In addition there have been some
scrip payments, even as long dated as
four years.
Some Declines.
Steel and equipment shares have IN
dergone a heavy shrinkage from the
high of 1914 to the low of July 80, to
which might be added a nominal loss
of several additional points on most
securities since that date. although not
officially sustained.
| Securities. common, preferred and
one kind, on fourteen companies, re-
coded from the high by $165.274,1S3.
Not entirely an unwholesome decline,
else the rehabilitation would have in
volved much more serious loss with the
opening of the exchange than with
the lower levels of July 80 as the point
| of starting estimates.
Further Decreases.
| Twenty-eight railroads have reported
gross earnings for the second week
in October, the average loss on the
twenty-eight being 1924 per cent, or
| $1,16S326. Four roads reported in
creases of $116.4S6 and twenty-four de-
creases OF $1,2S4,S14.
Anu Hrrrc TrFnnnra1,r cacr.