Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-03-03
NO LIFE IN MARKET
! FOR LOCAL SECURITIES
Washington Railway and Electric
Shares Hold Strength-The For
eign Exchange Situation.
Treasury Deficit for Fiscal Year
Now S1O3. $50 ,O6O-Ffnancial
Notes and Comment.
BY I. A. FLEMING.

BY I. A. FLEMING.
Local investors seem to have placed
their surplus funds for the present, or
are holding off awaiting 4 settlement
of the foreign situation. Banks, too.
seem to have arranged for the en-
ployment of their surplus funds, for
there is little or no inquiry for bonds,
nor yet is there much pressure to sell
Such we're indications at today's SEES
sion of the Washington Stock Ex-
change.
Were it not for the steady absorp-
fion of the shares of the Washington
Railway and Electric Company. when
offered for sale, the local market would
not show much activity from day TO
day.
Even the bid and asked prices on
nany of the usually quoted stocks
were neglected to the point of no quo
tations.
For the daily sessions record 1nere
were sales of 100 shares of washington
Railway and Electric preferred at "a =
10 s41s and a small lot of the common
stock at 90 The only other transac-
ton was in Mergenthaler, few shares
at 173.
Gold Imports.
While there have been some small
amounts of gold imported from Lonooh'
the $4,000 received yesterday was the
first important movement of the year.
1t is not likely that the Bank of Eng
land will be willing to permit much
reduction in its stock. although it may
give up some gold from it's Ottawa,
Canada, supply. Indeed. there seems
to be good reason for believing that
tod MI
chased in the open market Any move
1nent of this character must necessar-
lily be restricted, and the further 1act
of the danger of transportation would
seem to preclude PROBABILITY OF ln1por-
tant imports.
Sterling exchange was again very
weak today. being easily below the
gold importing point. Italian exchange
was also decidedly weak, the very
heavy purchases of munitions and
equipment, as well as of provisions and
breadstuffs, making for surplus of
exchange.
Treasury Statistics.
Disbursements by the Treasury De-
partment for the business day, March
1, exceeded the receipts by $S3.993,
making the excess disbursements for
the fiscal year to date, $103.63s.O60. as
compared with s51,O01.63O for the pre-
yious fiscal year to the corresponding
date.
The Wall Street Journal, commenting
on this deficit and the outlook for the
government revenues. has this to say:
The facts are that the treasury IS
about s57500,0oU worse Off. in the ratio
G. receipts to current expenditures,
since June 80 last than was the case for
the same period of the preceding fiscal
year The deficit looks imposing Tor
the moment, because five-sixths of the
S60,700,O00 which was collected last
year from the corporation tax and IN,
d. ;idual income tax is not paid until
May and June.
Even with this large reserve of in
come however. the Treasury will show,
at the current ratio of income and
outgo, when expenditures are taken in
to account of about S20,00O,000 for the
Panama canal. deficiency in receipts
OF from $i5,0oo,ooo to S5o,0eo.ooo Tor
the year.
How shall this deficit be met? 1t
was admitted. when the construction OF
the Panama canal was provided for. that
1T would be proper to charge the cost
to the capital account of the nation
rather than to meet II from current
receipts. In fact. however. the total
amount expended which is reimbursable
by bonds has been 1883. 900. and of
thu; amount bonds have been issued only
to the amount of s13S,s00.000. 1t would
be entirely proper bookkeeping to issue
bonds for the entire difference of more
than s214.000.00o.
whether a block of $30.000.000 to
$4,000. 900 in bonds can be sold on q
3 per cent basis may prove somewhat
of problem under present conditions
of high rates for capital. 1t may be
necessary for Congress to intervene
with provision for raising the rate to
312 or per cent, and perhaps to per-
nit the issue of interest bearing notes
for two three years. in order to ere
ate an investment in which a portion
of the assets of the federal reserve
banks might be legitimately employed"
Emergency Currency.
With the LIST Of March the emer-
gency currency circulation outstanding
was reduced to but s31. 000, 900, and the
chances are that before the middle Of
this month the retirement will have
been practically completed. This cur
rency now carries. under the Aldrich-
Nreeland law, b tax Of az per cent,
and with rates for money as low as
they are at this time there are but
few sections of the country where the
money could be used TO any advantage.
Retirement of this currency has been
going on steadily since the tax reach
ed the 31z per cent basis. in the month
of November.
At the end Of October there was out
standing s36s.55l .o65: at the end OF No
vember but $4,000, 900 remained out
standing, this being reduced TO sl50
January interest was at Az Der cent
rate. and all but s65,oO0,0 900 was retired
the federal reserve board making special
efforts to bring about retirement by re-
ducing the -ediscount rates of the region
al banks.
One-half of l per cent tax month is
added TO the interest rate
II is expected that this month will see
the end of the usefulness of the Aldrich-
Nreeland emergency currency measure
which brideed over serious crisis in the
nation. against repetition of which the
federal reserve law is believed to be an
assurance.
Lanston Monotype Company.
william j. Flather, local director of
the Lanston Monotype Company. re-
turned last evening from New York
city. where he had been in attendance
or meeting of the board of directors
bf that corporation.
The business of the corporation"