Evening star., 1915-04-29
LOCAL BOND MARKET
VERY ACTIVE AND FIRM
Large Buying Movement in Bonds.
Strength Also Shown in Lead
ing Stocks.
Bankers Concerned in Matter of Tax
Funds-Urge Their Claims.
Financial Notes.
BY I. A. FLEMING.

BY I. A. FLEMING.
Business on the local Stock Exchange
improved decidedly at today's session
From the recent inactivity and indIf-
ference there was an urgent buying
movement and some sharp recoveries in
prices.
Bonds were the leaders. over S-'-""'
par value changing hands.
Yesterday the most active day
for years in the New York bond mar
matter of transactions in the history
Of the institution.
Whether this was the Influence that
led to the great competition for oonds
on the local market or not 1t is impos-
sible to determine, but the demand was
there, and both from investors and
bankers The bonds most in favor
were tho Potomac consolidated 5s and
Washington Railway and Electric IS
both issues being relatively cheaper
than other utility bonds.
Moreover, there was a decidedly firm
tone under the stock list. some hereto
fore weak spots being decidedly
strengthened. while higher prices were
bid for Washington Railway preferred,
So, without bringing out any stock.
In all $4,000 par value, Potomac Con
solidated 5s changed hands. HALL
selling to So.
CAPITAL Traction 5s brought 1861
and Washington Gas 5s 1o4b.
Mergenthaler advanced from 1e1 to
1872 and closed firm Lanston sold at at
S4A, sharp rise. Washington Gas
sold at 7o2.a11.
CAPITAL Traction was nominal. 50 bid
Virginia preferred stock
was offered at 6s-
Bankers Urge Their Claims.
Washington bankers are apparently
much concerned over the question OF
obtaining the usual redeposits OF tax
funds, now that there seems to be a
chance that the Treasury officials may,
on the theory that the funds are not
needed. refuse to return the cash TO
the banks.
There are those who believe that
such action might indicate a desire to
help the federal reserve banks OF this
district by forcing the banks. in the
event Of the s6,000.00 to s7.0o0.oo0 tax
funds being held by the Treasury De pc
partment, causing a lack of cash for
the needs of Washington. to go to the
Richmond regional institution for re-
discounts, something that local bank
srs have not had to do as yet, In any
large volume.
Interest rates on government deposits.
which are being withdrawn from the
banlIs and placed in the federal reserve
Mndfutdona. is on the basis of per cent
psr annum: tax moneys In the Dlstrict
h00 bean redeposited in the national
honirs, In proportion to their deposits, on
per cent interest basis.
Rediocounts from the Richmond regional
hank Of the federal reserve system call
for interest payments at per cent IN
terest, hence the preference OF the bank
err for the cheaper funds
Custom. tho nation over. has recog.
nised the necessity for the redeposit OF
tax funds in the local banks
In the days that are gone 1t was the
privilege Of the municipal treasurer to
place the tax money in banks of his
choosing, he being under bond generally
furnished by bankers, and the Interest
was a perquisite Of the Office.
the hands of treasurers and Gus
todians goes direct to the credit Of the
municipality. and the per cent in
terest paid by local bankers. in all
probability goes to the credit of the
District.
These funds. in the case of the Dis
trict. are strictly Washington moneys.
and will not be needed by the govern
District, in the case of 100000 the
amount the banks ask for, until repay
ments are made as usually provided.
Some Of the leading financial men
ury win see to it that s6.o0o.ooo to
$1,000, 900 of tax funds are not taken out
Of the District banks. without the
usual return, at a time when he him
self predicts returning prosperity in
large degree.
Moreover. 1t is much easier for banks
to furnish acceptable security for tax
funds than 1t is the strictly CONNER
banks of the federal reserve system as
collateral for rediscounts.
Washington Is not a manufacturing r
city, and commercial paper is not made
In large amounts here. although, in COM
mon with other bankers, local institu-
essary to employ funds not required in
business. and. II necessary. enough
could easily be secured from CONNER
cia1 paper centers to make effective all
necessary rediscounts-not a probable
ity of the near future at this time.
Financial Notes.
II IL expected that April net earnings
Of the United States Steel Corporation
Vim Cross the 100000 mark.
Emergency currency outstanding, S.
Se.o00-and It Is drawing 6 per cent
interest
The interstate commerce commission
announces that its authority extends
over interstate, interurban electric
roads.
In Buffalo. a bond Of $4,000 was asked
for each "1itney bus IN operation. a
map Of route; applications required ap-
provai Of tho city council and license
fee of $50 to $3.50 for each car. accord
ing to seating capacity. was required
The 'jitney" has ceased to operate In
Buffalo.