Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-04-25

The financial sensation of the past
week has been the effort on the part
of the Guaranty Trust Company of
New York to hold its trade and keep
Its customers among the state banks
| III open and direct competition WIFI
| the federal reserve system.
| What this corporation proposes to 90
| for the banks and trust companies
no, members of the federal reserve
system in the state of New York, other
! trust companies may do for their cor
respondents in other states
The federal reserve measure con-
templates the free collection of checks
and drafts of member banks in each
of the twelve regional districts by the
regional bank of the district. and the
reserve board has taken steps to ma he
this provision operative.
Not only do the trust companies of
the country feel that their rights have
been invaded by the provisions of the
reserve act. giving the right TO mem
her banks to assume functions here
tofore held exclusively by the trust
concerns. but they wish. in so TAR as
possible. to hold their trade. and in or
der to do it must undertake the same
services for their customers mat the
federal reserve system promises.
The Guaranty Trust Company offers
10 undertake the collection of drafts
and checks for banks in New York
state free of charge. and. in arrltion
Ito pay per cent interest on balances
carred with it: thereby gong the red
eral reserve board one better, IN the
pa yment of interest, always an I'M
portant item to banks and especially
To interior institutions
Bankers say that this action by the
big New York company presases slml-
lar measures by other trust companies
to prevent the reserve system from
disturbing financial conditions in other
sections Of the country, through the
transfer of balances to the regional
banks.
Great efforts have been made by the
federal reserve board to obtain the
largest possible membership for the
reserve system: the American SANK
ers' Association appointed a committee
TO help this movement along, and a
committee to report on the hest meth
DDS of accomplishing the aims OF the
board will report May at meeting
at Old Point Comfort, Va. Broad dls-
russion of the new phases of the SIT
uation will no doubt be engaged IN.
The trust companies have also an
nounced their intention of Contestlng
the legality of that section of the re-
serve law giving to member banks
in the reserve system right TO act as
trustee. executor. administrator and
Il
authorized by the federal reserve
board.
Washington Securities.
During the past week Washington
stocks especially the few that have not
been traded in of late because of the
minimum prices above actual trading
figures. have apparently found their
price levels and without causing any
material uneasiness in the matter Of
bank loans secured by stocks included
in the list referred to.
For the year up to the close of BUSH
ness yesterday the total sales OF all
stocks involved s,s65 shares. As indi-
eating the great Importance OF Wash
lngton Railway and Electric stock in
this market it may be stated that 5.oSs
shares of this stock, common and pre-
ferred, have changed hands, COM
pared with 1897 shares of all other
stocks combined. Washington Gas
was second in trading Importance, with
1880 shares. There was no definite
third in the list.
In the bond list s524.5oo face value
have been sold. and here, too, Wash
ington Railway As were the leader.
value, with Potomac Electric Console
dated IS traded in to extent of $780,
900: Capital Traction IS, sS0.500. and
Washington Gas 90 to extent of ss0.500.
frlceS on STOCKS are generally near
the top of the year save on Lanston.
Capital Traction. Washington Gas and
Mergenthaler Linotype Company, with
the typesetters not far from the high
figures.
All things considered. the narrowness
of the market, the cutting and pass
ing of dividends. new issues of bonds
and other matters, the local market
may be accredited with having given a
fairly good account of itself