Evening star., 1915-06-15
IMPORTANT CHANGES J
MADE IN COLLECTIONS
New York Reserve Institution to
Pay Boston and Philadelphia
Checks on Demand.
Other District Banks Must Wait One
to Six Day-Local Securities
Slow-Notes.
BY I. A. FLEMING.

The federal reserve bank of New
York has revised its methods of Civ
ing immediate credit against checks
drawn on other regional banks of the
reserve system. This privilege will be
given hereafter only to the banks OF
Philadelphia and Boston
Checks drawn on the Richmond re-
gional. bank. the headquarters for
Washington institutions. will be re-
quired to wait one day for credits TO
start, while Chicago, Atlanta, Cleve-
land. st. Louis. Minneapolis and Kan
sas City will have two days interval.
and Dallas and San Francisco three
days before the cash will be available
The chief object attainable by this
action is the checking of a habit which
enables merchants and others TO oooan IAN
New York exchange without cost
through the use of personal checks
Member banks have been able here
tofore to obtain immediate credit on
these checks at the reserve oank IN
New York city. the ultimate designa- :
tion of a large percentage OF personal
checks of merchants and others given
in payment for merchandise
The aggregate amount OF New YORK
exchange thus made without cost IS
said to have averaged 100000 600 day
and at times as high as s25.Ooo."0o
- The new policy means that credits on
these items will be withheld until the
checks reach the bank upon which
they were drawn. Also that the New
York bank will make a collection
charge.
II is also expected that the new pol
lev will greatly decrease a form OF
check kiting, whereby many merchants
have drawn checks on their private ac-
counts, sending them to New YORK
Some time, perhaps days. is re-
quired to get checks back for coHece
81 -fx dow m
checks and the maker of the check
understands this and counts on the
time when the check must be maze
good. In this way he can use his
funds elsewhere without interest. If so
inclined, making the smaller balance
do the work of a larger one.
Local Securities.
The movement in the local security
market today was rather narrow odd
lots being again favored. with very lit
tie else doing in stocks and but lit
tie more volume In the transactions in
bonds.
There were no changes in prices.
Washington Gas 5s sold at 1o4 a
Railway As at 50: $500 bond at S2N !;
Potomac Consolidated So were steady
at 1O1.
Small lots of Capital Traction stock
sold at $50, with SSk, ex-dividend.
being the best bid for round lots. which
were offered at S9A.
Washington Gas sold at 72h, ten
shares of Mergenthaler at 1S3 and Com
mercial National Bank shares at 1913.
The stock exchange will adjourn
Saturdays in July and August. follow
ing it's usual custom.
Dividends.
The Real Estate Title and Real
,ny
declared a semi-annual dividend of
per cent, payable June 30. to share
holders of record June 25.
The Union Trust Company will pay
its regular quarterly dividend of II
per cent, July Is. to shareholders of
record July l.
Treasury Condition.
The condition of the United States
Treasury at the close of business yes
terday was:
Net balance in general fund. s1s.445,-
2s1: total receipts. $2,505.731; total
payments. s1.s25,9ss.
The deficit this fiscal year is $780,
399.066, against deficit of $50, ,966.941
last year. exclusive of Panama canal
and public debt transactions.
Financial Notes.
The 3. F. Goodrich Company Is said
to be manufacturing so per cent more
tires than last year. and unable to
keep pace with the orders
Business is suffering from a lack Of
employes-that is. in the industrial
line. immigration is not keeping pace
with the Withdrawals of fighting men.
Baldwin Locomotive Company has
orders for 800 locomotives from Rus
sia
Each day OF the next ninety days
will proba bly, add about 5000, 900 to
the wealth of the country in maturing
crops.
The Grand Trunk Railroad Company
announces the sale of $500. 900 five
year 5h per cent bonds. in London, at
9e
Despite the decreased earnings of
Canadian Pacific. il is generally be-
lieved the regular dividend rate will
be maintained
II is stated that French financial in
stitutions are buying American secur-
fties for the government. paying in
French government securities and
using American shares TO pay for am
munition and supplies bought on this
side.
Pittsburgh dispatch says that war
orders to the amount of S80,000.000 are
going begging Low prices. lack of
equipment and severe specifications are
given as the reasons.