Evening star., 1915-12-05
FINANCIAL-LOCAL AND OTHERWISE.
BY I. A. FLEMING.

BY I. A. FLEMING.
number of local national banks have
decided on their policy for the annual
elections which come the second Mon
day in January, and which are there
fore not far away. No question of the
Clayton act will be considered. but dirsc-
tors and officials will be elected without
regard to it's limitations.
October Is. 1916. or one day before the
Clayton law with regard to banks be-
comes operative, it will be up to direc-
tor, in national banks and member banks
of the federal reserve system. to make
their choice of one bank which they will
serve as directors or officials, and resig-
nations from dual positions Will be in
order.
1t will be possible either to let the va
cancies go over until the annual election
of 1917, or to fill them as may be de-
sired.
The federal reserve board has decided
the Clayton act does not prevent an Of
ficer or director of national bank from
serving as an officer or director of a
state bank or trust company with assets
of less than S5,000.000. provided the
banks in question are not located in the
same city OF 100000 inhabitants or more.
Also, that a director or officer of five
Incorporated banks. the principle hold
ing good for even larger number, with
total resources over 100000, does not
interfere with position as officer or di-
rector in a national bank with assets
over s5,00o,000 provided none of the
state banks are members of the federal
reserve system.
Where the entire capital stock of one
is owned by another bank. no matter
where located. regardless of the popula-
ton Of a city. there are no restrictions
as to officers or directors. in the matter
of holding position.
Favorable Indications.
The past week has not been attended
with any special activity in either
stocks or bonds on the Washington Stock
Exchange, but there has been sufficient
action and undertone to convince inter-
ested parties that the SIances are good
for better business with the advent of
the new year; possibly before then.
All summer and fall business in local
securities has dragged wearily. There
has practically been no support to any
thing.
An exception must be made to the
| squirt in Lanston on reported big profits
| in sight on war orders, and hints that
Mergenthaler was doing something In
| the same line. but the movement was
not of long duration.
OF late the public utility shares are
attracting more attention. The floating
supply Of Washington Railway common
| is small, and it would be an easy mat
| ter to absorb the offerings at any time,
while the preferred is strongly held
and gives indications of an advance.
Capital Traction seems to have turned
| it's corner. Holders believe the company
| is in an excellent position; that de-
| discount o
any decrease in receipts, and that as a
high grade street railroad corporation
its shares should do better. With money
as easy as 1t is and the prices at which
local utility shares are selling they
should be tempting investments. 1t is
not likely that the utilities commission
Will make any drastic rulings against
these properties.
Washington Gas has made sharp
gains during the week. The only un-
certainty in the affairs of this corpora
tion just now is the suit Of the George
town Gas Company against the former
corporation holding the big block of
Georgetown stock.
The local bond market would be more
active if there was a larger supply of
governors might make efforts to add
railroad bonds and a number of other
issues to their list, with more or less
| certainty of a good business. Millions
OF dollars worth of bonds have been
1
during the last few months high-grade
rails and short-term issues being IA
yored Capital Traction, Washington
Gas os, Potomac Electric first mortgage
bonds and other high-erade issues are
rather high, but at that the offerings
| are always limited. Potomac consoli-
dated bs and Railway As. selling on A
| 5 per cent basis or about there are
readily salable.
Bankers Will Approve.
James B. Forgan. head of the First
| Na'iohai BANK of Chicago. makes a
suggestion that bankers generally win
approFe. lie believes the regional
| banks of the federal reserve system
should reduce their capital stock very
| materially, keeping sufficient capital
to enable them to make their own ex-
penses and pay per cent dividend on
| their capitalization
A two-thirds reduction in capital is
| recommended with the double liability
attached
The less the federal reserve banks
keep invested in normal times to cover
| their expenses and dividends he SAYS,
the better they can conserve their
strength for the exercise of their func-
tons in emergencies. 1t is incontro-
Veyt13le that when member banks can
with ease, supply all existing legiti-
mate demands for credit, as with few
exceptions they have been able to do
this year, there exists very little use
for the federal reserve banks, and
| practically all the loaning they do, to
the extent they do any, is done in COM
petition with the member banks and
aggravates the abnormality of the sit
uation. I am not in sympathy with
the statement that it is of no i'm
portance whether these banks earn
their dividends or not The dividends
are cumulative and form liability
against the regional banks until paid
One Weeks War Exports.
For the week ended November 20
15,0S9,000 of a total export valuation
of $85 1900 We're accredited as war
| materials. Probably part of the other
exports for the same week were of
breadstuffs and products for the
armies. A year ago the entire export
movement for the week referred to
was but s19, 1856, 900.
The war goods shipped and the VAL
ues thereof were as follows:
| Horses to France and Italy. S5s4 900
Proiectiles loaded and unOuded. :, ,669 600
Smokeless powder, cotton and cordie ,7S4, 900