Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-17
Wealth for the Farmers.
BY I. A. FLEMING.

BY 1. A. FLEMING.
The Washington Currency Associatlon
was the first one organized in the oni'eo
States under the Aldrich-Vreeland emer-
gency currency act.
The law itself was passed when the n
nancial skies were clear and there were
no indications Of trouble brewing al nome
or abroad.
The WASHINGTON Association was organ
lied under like conditions, with w. ).
Father of the Riggs National Bank as
president; George w. White Of the Ma
tional Metropolitan Bank, vice president
and H. H. Mckee Of the National Cap
| ital Bank as secretary.
| Washington probably had less use for
emergency currency than most cities OF
| its size. This is evidenced from the fact
| that while they were entitled to take out
IS. IA, 900 Of this currency. they took out
only. $685., 900 when the outbreak Of the
war in Europe brought on the very crisis
| for which the emergency currency meas
| ure was enacted.
| That 1t was IN force was the salvation
Of the business interests of the United
States, for. though the federal reserve
| law was on the statute books, the meas
ure itself did not become effective until
| November Is, 1914, and the emergency
for its general use in hundreds of mill
| lions of dollars has not yet arisen.
Washington, unlike other cites, espe-
cially those where manufacturing Is
| largely followed. did not feel the de-
preston after the declaration Of war as
keenly, the governments pay roll OF &c.,
100000 or more month being continuous
| and uninterrupted
| Only s637.OO0 emergency currency was
| taken out here, the maximum being
reached October 5. 1914. August IL, a
few days after war broke out. $527. 900
last application for currency was ap-
proved September 20 last year, this be-
| ing for 100000.
| November 26. 1914, after the federal
| reserve law had been in effect nine days,
application was approved for the retire.
ment of $4,000 The last application
for retirement was dated March 6, for
$45, 900.
| The total amount of securities pledged
| to the government for this s637. 900 emer-
gency currency was $1.O17,174.24, pelng
| div .ded as follows:
| Commercial paper. 43.6 per cent Of the
| total. $43s.374.24; state and municipa!
bonds. 81 per cent. $4,000 asc rail nsds
Ia per cent, s124.Soo; other securities.
| 6.5 per cent, $4,000.
| For the use Of this money the Dor
rowers, members Of the washington
Association, paid interest amounting to
| S,S6207 in the aggregate. distributed
August, 1914. s15o.15; September.
s632.72; October, $1.1s7.s3; November.
s1,31s.11; December. $1.312.50: In 1915.
| January. s1,1s5.65; February. s54oss, and
| March, s430S.
Members of the various committees
gave their services for the good OF the
association, the real work being done
by the examination committee which
IN 0ys
rency and on any substitut1ons that
might be necessary.
| The total expense of the organization,
printing of bylaws, etc. was $15S.04.
Speaks on Credit.
| In an address last week Robert N.
Harper, president of the District Ma
tional Bank. made the declaration that
he would rather make loans to deserv-
ing, reputable, honest men. without
real estate or security holdings--men
who he knew would pay-in prefer
ence to extending financial accomn oda-
| ton to rich borrowers, who would Qutb-
BILE about repayment and whose repu-
tation for meeting obligations prompt
ly was questionable"
Credit is largely based on ability to
pay, but the personal eQuaSfon Is not to
| be ignored. by any means-it is only
second to ability to pay. Reputation
| for meeting obligations without quib-
| bling over technicalities. for acting
| squarely in matters OF business Is an
| Invaluable business asset and failure
| in these essentials is a handicap almost
! too great to block the way to success.
Bankers have a way Of remembering,
| and where accorded proper treatment
and met in fair spirit they will have
Flew compunctions against entering into
| further business transactions and they
are. especially partial to men who do
the best they can and keep on doing 1t.
The American Budget.
/ The budget of preparedness, as esti-
| mated by administration officials, call
| ing for vast expenditures. is one of the
reasons for the activity in the ship
building yards, the foundries and the
mills. The European demand In the
| chief source Of orders at this time.
Millions have been spent. hundreds Of
millions are to be spent, and on top of
| the crowded conditions of today comes
| the information that the government
| will prepare.
| 1t certainly looks as II prosperity of
| the industrial world, or at least that
! part of it engaged in war munitions
| manufacture, was absolutely assured.
| There Is not the slightest indication of
| an early ending of the war or wars
| abroad. Certainly some of the great
+, leaders in the industrial groups will
| profit much from the burden of new or
| ders. with American commissions Of
| fered, also.