Evening star., 1915-01-10
F1NANCIAL-LOCAL AND OTHERWISE,
BY I. A. FLEMING.

Ittie business there. Hence the aban-
comment of the Balboa proposition
Inc commercial expects to have its
ary. N eoA
+ Bank Elections.
All national banks. some of the trust
companies and few savings banks
Will elect directors for the ensuing
year tuesday. A canvass of the situa-
ton failed to disclose any very i'm
portant changes. Most OF the directors
will be reelected in a body, a few new
m members mn OF boards will be chosen, but
IN the official roster Of the institutions
there are no indications of any change.
A year hence there will be many
changes, because at that time the new
law forbidding interlocking directories
will be in force. Nearly every trust
company has a national bank affilia-
tion with a number of directors on
both boards.
The Sixth Call.
The sixth "can" Of 1914 presaees
even more than six calls during 1915,
Precedent for over fifty years has been
for five calls year.
The federal reserve board will proba-
bly, be able to obtain many valuable
statistics from the call at the end OF
last year, and the figures will be very
valuable In the years to come, for the
, purposes of comparison.
National banks lost quite heavily in
deposits between the last two calls.
savings banks We're also losers, while
the trust companies showed increases
in total deposits.
Heavy Withdrawals from national
banks of tax money by the government
and the holiday expenditures with
drawn from all class Of banks were
largely responsible for the deereased
deposits.
Acceptances and World Trade.
"Acceptances," according to the Janu-
ary circular Of the National City Bank
of New York, have done much to
ket of the world"
Attention is called to the efforts of
the National City Bank to advance
| trade with South America through ac-
ceptances against purchases made there
up to the time the National City is
sued acceptances, when q New York
merchant wished to buy coffee in Bra
zil. it has been necessary for him to ar
range through his own banker in New
York to have a London bank accept a
draft for him. London thus took a
commission upon practically all our
purchases in foreign countries. with
out advancing any money, for the
American buyer, or his banker, was
obliged to meet the draft on maturity,
| on the penalty of losing his credit.
This business has developed in Lon
don until it has attracted millions of
| money from other countries. which is
| employed in carrying acceptances
based on the trade of the whole world.
| 1t has created a great loan market, on
the safest class of paper known. and
| the security and attractiveness of the
business has brought about very low
F! interest rates on 1t, so low, indeed.
| that they make London's position as the
premier money market almost unas-
sailable. 1t is idle to talk about New
York's becoming rival to London un-
| less it can develop similar market.
There must be such an appreciation of
| the bank acceptance as an absolutely
safe, and also perfectly liquid, asset.
| that there will be a great and constant
market for this class of paper, and at
| rates approximately as law as those
prevailing in London. Otherwise the
world will continue to go to London.
This is the problem which the au-
the New York banking act, had In
view. The first step toward creating
such a market was to have a strong
central organization authorised to buy
these acceptances. This the federal
reserve banks are authorized to do
and the fact that they will buy them
will make them not only good for. cash
at maturity, which is seldom beyond
ninety days, but good for cash inmedi-
| ately. at any time. In the vaults OF
! q member bank they are almost the