Evening star., 1915-03-20
REGIONAL BANKS MAY
PURCHASE CANAL BONDS
Bankers Believe Action Presaged BY
Intent to Remove Govern
ment Deposits.
National Banks Hope to Obtain Con-
tinuation Of Method of Replac-
ing Tax Money-Gas Higher.
BY I, A, FLEMING,

BY I. A. FLEMING.
Some of the leading national bank Of
ficiaIs believe that the proposed re-
Tnoval of government deposits from ma
tional banks to the regional tnstftu-
tions of the federal reserve system.
which is said to be contemplated in
the Immediate future, presages the
sale TO the regional banks of the per
cent Panama Canal bonds now in the
Treas
Attention is called to the fact that
many of the regional banks have been
a BILE to place only small fraction OF
the millions In their vaults; that appli-
cations for re-discounts are extremely
light, while there is little or no pros
pect for a change In the near future,
with the banks of the country unable
10 profitably place their own funds.
The federal reserve act gives to the
Secretary of the Treasury discretionary
rights in the matter of keeping gov
ernment funds in national banks or IN
reserve regional banks.
The Treasury deficit is increasing,
being at Its highest point March IL.
when the disbursements exceeded the
cess disbursements for the fiscal year
to that date to S107,044,007, as COM
pared with S49.9S2.67S excess disburse-
ments for the previous fiscal year.
The returns from the income tax, pay
able in June. are expected to be con-
siderably less than the returns of 1914,
and the deficit will then command at
tention and. in the opinion of bankers,
force the sale of Panama canal bonds
Washington bankers expect to lose
government deposits, but they have
taken steps to prevent the transfer of
District tax money to regional banks,
holding that such movement, which
may or may not be contemplated,
would be unjust and at variance with
the prevailing custom in every state In
the Union.
Tax collections are for the fiscal year
AMI payments gradually absorb the
place s4.o00.ooo tax money In the
banks about May 10 of each year. re-
payments being made In monthly m
stallments from July Is, on the
fifteenth day of each month. and the
final payment about February Is
This year four banks carried tax
money to March Is.
Committee Named.
At recent meeting of the Washins-
ton Clearing House Association. W. T.
Galliher, president of the American
National Bank; cuno H. Rudolph. pres
ident of the Second National Bank;
r. n. Harper. president Of the District
National Bank, and W. J. F1ather, vice
president of the Riggs National Bank.
were appointed q committee to repre-
retary Of the Treasury In an effort
to secure the assurance that there will
be no change in the method OF handling
tax funds.
-
mittee. will seek an appointment for
the committee with Secretary McAdoo
on his return to duty.
Big Speculative Movement.
Wall street is enjoying a real specu-
lative movement in Bethlehem Steel
common stock. March 1 the stock was
selling at 47ss; yesterday it closed at
621z; this morning opened at 63k and
sold to 6S.
It has been stated, with more or less
official authority, that the company was
earning from 25 to 35 per cent on the
common stock. With these earnings,
the expectation Of q dividend on the
the strength of this the big advance
started.
Charles NJ. schwab, president Of the
corporation, has repeatedly stated that
It was his intention to expand the plant
Of the corporation. etc. using the earn
ings for that purpose.
Just now Mr.. Schwab is at the Hot
Springs. slightly indisposed, and the
stock is having its greatest furry as
shown by todays advance.
The market manipulation indicates
that a large short interest, accepting
Mr.. Schwabs word on the construction
matter, as against a dividend payment,
Is being run In at loss more or less
serious.
Washington Gas Higher.
With the announcement by one Of the
Commissioners of the District that a
reduction in the price of gas was a
probability Of the near future. consid-
cradle interest was shown on the local
exchange today when the stock was
reached on the call. Two quotation lots
were recorded on the sales sheet at 73.
an advance of y point on the price as
compared with the last previous quo.
tation. The bid price was 72h. but no
stock was offered under 73A.
Washington Railway preferred at
tracted considerable attention and
showed a stronger tone, sales being
made at 81 and later at SAN. with
small lot at S4k. The common stock
was nominal. Mergenthaler was steady
AT 1s3.
Washington Railway and Electric As
were in good demand at 81 for full
bonds and 81 II for $500 bonds. Wash
ington Gas 6s were 105A.
Clearings for Returned Checks.
The clearing house association this
afternoon took action establishing
daily clearings for returned" checks.
at which messengers from all banks
will meet for the exchange of checks
upon which payment has been refused
for whatever reason. the paying banks
taking credit slips. which will be
credited through the clearing house
the following day. Hours for the clear
ings were fixed at o'clock in the aft
ernoon on all week days but Saturday,
and at 12 o'clock Saturdays.
Notice of the action of the clearing
house will be sent to all non-member
banks. and they will be asked to con-
form to the ruling. AS soon as they
have done SO the action will become
effective.
May Examine Any Bank.
Importan. action was also taken in
the matter of bank examinations. The
Clearing House Association authorized
the examination committee, which has
heretofore been authorised to arrange
for an examination Of n bank. to make
examinations direct. This action not
only carries the right to examine mem
Der banks, but any and all banks clear
ing daily through members.
Any bank refusing to submit to ex-
animation when 80 requested will be
refused the privileges OF clearings.
There are but few institutions en-
tn hc III ha y