Evening star., 1915-02-07

years, much was finally conceded to the
stockholders; official salaries were re-
| duced, quarterly reports were instituted
| and the annual reports became Pull and
| informing. The management was itself
| benefited because it now feels that it is
proceeding with greater approval from
| the stockholders
Publicity for Directors Holdings.
| follows:
"If corporations were required by law
| to publish with their annual or quarterly
| statements the names of all directors.
| with affirmation by each Of the amount
of stock actually owned individually.
stockholders would know at glance
whether they were properly represented
and could act accordingly.
"If the director carried outright only
small amount of stock, but claimed to
represent another individual who had
large holdings. the name OF the latter
should be required with amount of
stock owned.
IF required to publish the amount of
their holdings. directors would be un-
willing to show up as owning but a
paltry amount OF their own stock, and
interest and confidence in the company
whose affairs were intrusted to them for
direction. by acquiring as large blocks
of stock as they could possibly afford.
the properties, they would exert them
selves in every way to make the busi-
ness successful; all Of which would ac-
crue to the benefit Of the stockholding
public"
Working on Clearings.
Federal reserve agents held week
fong series Of meetings last week for
the consideration of the subject of
clearings between banks in regional
district and between banks within sew
eral districts. Three conferences were
held with the federal reserve board and
from the opinions expressed and the in
terchanEe of views it is probable that
regulations regarding the clearing func-
tions of the regional banks in the sys-
tenn will soon be issued.
Local Securities.
During the past week values of local
securities have been fairly steady with
the exception Of Washington Gas. which
sold off a point on the report Of the
years earnings. In all 315 shares of
the various securities were traded in.
Bonds sold to the extent Of $30,50o face
value, practically the only change being
in Washington Gas 5s. wnlch rose 70 OF
a point. The premium obtained by the
company on its recent sale of $6OO,00O
S per cent bonds, $4,000, will go far
toward paying the 100000 interest ac-
count for the year.
On Expansion of Credit.
An excerpt from the National City
Bank circular for February follows:
There is a large market for securl-
ties here, but it has never been large
enough to absorb all of our own issues
and when it is considered that we must
take many of these back from Europe
it is apparent that we will not begin
to meet the demands at home and
abroad unless there IS nperal use VI
bank credit.
whether the member banks of the
federal reserve system will be Justi-
fed, in view of the present emergency,
in allowing the margin aoen+ OF ,ena,ns ehsnae
in the law. to be taken up by loans
based upon stock exchange collateraf
and other securities, is question over
The advocates of an aggressive national
policy at this juncture In world anairs
Will favor it. They will point to the
action of the great foreign pankins
hamper them in dealing with the pres
emf situation, and say that this country
at this time should display like cour-
age in using its credit machinery; 4. Il
10 the world, while others are using
their credit for destructive ends, to
use our credit to sustain and build UP
industry. 1t will be said further that
n would not be new In this country
for bank loans to be made for fixed
Investments, that the legal reserves
were lowered because compensattng
security had been provided In the fed
eral reserve system, and that the Sttua-
tion would be as safe with the banks
loaned>up close to the new limit as un-
der the old system with higher re-
serves. 1t will be argued that the chief
credits lies in a movement of gold from
the country. thus removing the base
from a credit superstructure which
cannot be correspondingly reduced. and
against by an international under
standing that gold will not be shipped
in any direction until after the war
and normal conditions have been re-
stored.
"on the other hand. it will be urged
that the use Of bank credit for long
term or fixed investments Is contrary
that such loans cannot be rediscounted
by the federal reserve banks. and that
if they are taken freely by the mem.
Der banks they will remain undigested
until they can be absorbed by the
real investment resources Of the coun-
try; that whenever. in a fervor of in
vestment enthusiasm. we have loaded
ties, it has sooner or later been found
necessary to slow up until they were
worked of. The conservative hnan-
clers will point to the abnormal con-
ditions existing, and insist that when
SO little can be known Of the future it
is not the part of wisdom or prudence
to exhaust the bank reserves Of the
country in the making OF unliquid
1T Is safe to say that bankers are
not going to buy securities on their
Of bank credit upon securities 1t must
be because the public is buying and