Evening star., 1914-09-30
BANKERS COMMITTEE
SUGGEST D|SC0UNT|NG
District Association to Consider Ad-
visibility of Collecting In
terest in Advance.
Apportionment of Gold Pool to Lo-
cal Institutions Based on Net
Deposits-Gossip.
BY I. A. FLEMING.

| customs of other large cities"
| At a meeting of the executive coun-
| Gil of the District Bankers Association
! to be held tomorrow afternoon, spe-
cial committee appointed some time ago
| to consider the advisability of inaugu-
rating the discount method Of making
loans in the District will report and
recommend, as follows:
On all loans made to customers OF
! the various banks in the city, the notes
given shall not bear interest. save after
maturity, and the banks shall deduct
| full interest at the agreed rate on c.
ceptance Of the paper.
| Where customers other than brokers
are applicants for loans secured by col
lateral, there shall be a definite time
| fixed for payment, and the full interest
| for the period named abstracted from
| the amount of the loan. on acceptance
| the latter term in all instances mean
ing when the bank makes the loan
| Heretofore collateral loans were large
| ly payable on demand.
Where collateral loans are made to
| brokers in the security business, loans
may be made ION CALI or on time, &C
cordine to the circumstances of the
| loan.
| An effort will be made through the Dis
trict Bankers Association to put these
| rulings itno as general usage as possible
It is in line with general banking prac-
tice in larger banking cities and many OF
| the smaller.
The committee is fully posted as to the
exceptions to the ruling, because OF legal
features, but nearly all loans will be sub
{vO
that has never been resorted to by local
banks, save that the United States Trust
Company introduced the practice with re-
gard to loans under $500.
w. T. Galliher, president OF the Amer
lean National Bank, will make the sug-
gestions to the executive commlttee ano
the special committee will defend the
proposed changes before the association,
probably at its meeting early next month.
and action to be taken there Will settle
the date of putting the new system into
effect.
That the measure will add materially
to the profits of the bankers is practically
assured.
Apportion Local Subscriptions.
A meeting of the Clearing House As
sociation. held this morning. was at
tended by representatives Of every ma
tional bank and of the trust companies.
The allotment of each institution to the
seven hundred-an fifty -thousand-d dol
lar contribution to the one-hundred-
| million-d dollar fund was made. and
will be put before the proper commit
tees in each bank for final approval.
basis of net deposits. government funds.
Canal Zone, insular and postal savings
deposits being excluded in making the
| basis for the assessment.
Just what evidence OF credit the con
tributors to the pool will receive Is
more or less Of a mystery; probably
| just the receipt from the managers OF
the big pool. either to the local Clear
ing House Association or to the indi-
vidual contributors.
1t Is probable that the managers of
the pool may be given a receipt for
their gold from the Bank of England.
as the money will be cent to the Do
While the contributors will not re-
ceive interest on their contributions. 1t
| is believed that the banks Will make
money on the transaction. The man
ayers in New York will fix the rate Of
exchange. and at a price that will give
some profit
It is more than likely that every as
sessment will receive the approval of
the proper officials, the action being
nimity of the effort everywhere to re-
lieve the situation in the foreign ex-
change market.
Some Concession.
The interstate commerce commission
has made some concession to the rail-
| roads of the country in permitting the
increase in mileage transportation of
one-quarter of 1 cent a mile. While 1t
is a small advantage apparently, yet
it will aid materially in the great
| movement of putting value under the
railroads" 1t cannot be taken as a
| change of attitude on the part of the
commission toward the railroads gen.
orally. but it is hopeful sign.
The greatest necessity of the times
is to put value under the railroads"
Steel Foundries. declares that his cor
poration will soon shut down its mills.
He said: Our prosperity, like the pros
| perity of the country. depends on the
movement in the rehabilitation of the
business of the country would come
from a more generous and liberal at
titude toward the railroads.
Financial Notes.
Americans in reaching for South
American trade find their most severe
obstacle in the long credits which the
Germans have given to the Latin coun-
tries. Three to six months time is the
rule.
The Amalgamated Copper Company is
expected to reduce its dividend to 81
a share.
London is expected to hold $4,000. 900
in American stocks seeking a market.
Bethel Steel Company reports a sur
plus for the six months ending June 80
Of $2,s69,627, but has made no deduc-
tions for betterments. etc: Its work
ing capital has increased 100000: cash
on hand, s3,406,000. A year ago for the
same period $153.000 was charged on.
On this basis the earnings for the half
wear of 1914 available for dividend
would be $2,104,627: equal to 11.6 per
cent on the common stock for the half
wear. or on B. basis for the year Of
93.2 on the common. The total income
of the corporation was s3,S78,225.
steel and iron mills have made a
one to two dollar a ton cut in material.
Secretary McAdoo has placed $13.01S.-
900 more crop money in the country,
the major portion in the southern sec
ton.
Riggs National Bank, has returned to
the city.
F. B. Devereaux, president of the To-
cal chapter. American Institute of
Banking, has just returned from the
annual meeting of the institute at UAl-
las, Tex Mr.. Devereaux has visited
many banks and has kept close tab on
the workings of the parent organiza-
finn