Evening star., 1915-02-07
FINANCIAL-LOCAL AND OTHERWISE.
By I. A. FLEMING

| Directors of many national banks
and. in this city, of savings banks and
trust companies as well, at meetings
soon to be held will find their CHIEF
dutv will be to frame answers to the
| "oyerdraft' order Of the controller OF
the currency 1t is said by bankers
to be by no means an easy proposition
and one that will be answered as oe-
sired. boldly and in the afhrmative. by
| but few.
There is q disposition to postpone
action until such time as the excep-
| tions which the controller is willing
to make shall have been announced,
which seems nothing more than nat
ural. The District Bankers Associa-
| ton meets in the near future, and 1t Is
probable that the question may be dis
cussed there.
Washington bankers admit that the
overdraft practice is one to be restrict
ed in every way possible; that the
policy of making loans through the
medium of the overdraft is to be con-
demned, but that an arbitrary refusal
to pay any overdrafts Is inconsistent
with good banking principles.
Directors generally look to the pres
ident Of the bank or the chairman OF
their board for advice and guidance on
questions of policy in the conduct OF
bank, and it is likely that they VIII
accept his advice in the matter OF
framing their replies.
One Washington bank president has
prepared a resolution which ne win
ask his directors to approve. IT Is m
ases' that the practice of overdrafts
in general is but a form of borrowing
from the bank without paying interest
on the loan, that it is source OF an an
troller Of the currency has asked this
board to adopt a resolution absolutely
refusing to pay checks back OF when
| there is not sufficient funds. therefore
it is resolved that the president OF TINS
bank is hereby authorized, in SO TAR
as he may deem it advisable and in the
best interests of the bank. to refuse
| to pay overdrafts. 80.
tuition is to do all to discourage over
drafts, but to exercise his own JudS-
ment in refusing to pay in or paying
such checks when presented.
ties that the controller would seriously
object to small, occasional overdrafts
due, moro or less, to carelessness, but
that he especially objects to the habit
of making loans on overdra1ts ana con-
tinuous overdrawing.
| 1t is probable that other banks viii
follow this line Of action, though there
are many bankers who assert that the
law does not give this authority to the
controller. He has been quoted as de-
can avail himself of to discipline banks
that persist in granting overdrafts."
Gold Certificates.
Some bank officials have noticed that
| the yellow backs" are not being given
out nearly as freely at the Treasury
Department as they were a few weeks
ago. In their place the twenty-dollar
silver certificate seems to have the call.
which would indicate that the Secre-
tary of the Treasury deems it wise to
keep an eye on gold supply. Gold is
being kept well In hand by the lead
ing nations of the world and the out
look here suggests like action. Then,
too. the payment on the second day Of
the month on account Of stock sub
scription to federal reserve banks has
given much gold to the regional banks.
$40, ,006, 900 during the last week.
Local Utilities.
Annual meetings of all the leading
utilities have been held and annual re-
it is pointed out in financial circles,
shareholders have cause for congratu-
lation.
The Washington Gas Company
showed larger sales Of its product, but
increased cost Of production causing
falling off In net returns, but the fu-
ture of the corporation Is said to be
more promising. Contracts have been
made for enriching oil on basis be-
low the figures Of 1914. while econo-
mics have been put in force that prom
eneCtiVR II.