Evening star., 1915-09-14
SLOW, EASIER TONE
IN LOCAL SECURITIES
CAPITAL Traction Shares Sold and
Were Offered at 86l4-Bonds
Virtually Neglected.
Washington Bankers Believe Allies
Have Practically Obtained
Loan Here.
BY I, A. FLEMING.

BY I. A. FLEMING.
There was neither activity nor any
material display of strength in today
session Of the Washington Stock Ex-
change. The hopeful indication of re-
newed activity. based on yesterday
lively demand for bonds, disappeared
entirely. Instead of thousands of dol
lars worth of bonds being sold, only
$500 were sold: while the inaction IN
the stock list was even greater than
usual.
The feature, if one may call any ac-
ton a feature in such a limited trad
ing area. was a further decline in Capt.
tai Traction shares to ssh. with stock
offered at this figure at the close and
SJh the best bid. A little railway pre-
fe erred, also a 5 per cent dividend payer,
sold at 81, with S0A bid and S11s asked,
the official quotations.
y small bond of the Capital Traction
Company sold at 1868, while railway
As sold at 81.
Lanston was again nominal-the buy
ing movement having subsidized
One Way Around Law.
Under the national banking act a ma
tional bank cannot have branches; a
state bank or a trust company may
maintain as many as desired. Under
the federal reserve act member bank
may have branches, with the consent
OF the reserve board, in other countries,
but not at home. August 25 the Cen
tLry Bank of the City of New York
made application for a national bank
the charter. This institution has eleven
branches.
1t is the intention of the Chatha m
and Phoenix National Bank and the
Century National Bank-when it re-
csives its charter-to combine. under
the title of the Chatham and Phoenix
Authority for this and the retention
thereafter of the eleven branches is
found in section 5154 of the Revised
. atutes of the United States.
When the consolidation of the two
banks was first mooted it was sup
p sed that the Chatham and Phoenix
National would surrender it's national
cnarter, take out charter from the
itate of New York and after the con-
soltdation again make application for
n national bank charter, retaining its
branches. Some wise lawyer has point
ell out another way of beating the
;tatutes and enabling the Chatham and
Phoenix National, when consolidated,
to hold distinct advantage over CO.
temporaries.
II has been suggested more than once
that the law be so changed as to give
national banks the right to establish
x
Il ust company competition without
iubterfuge through consolidation
This case, now brought to the at
tcnt1on of the federal reserve board,
may have the effect of causing some
action or recommendation to Congress
from the board
Washington bankers believe that the
representatives. of the allies now in
New York city will successfully COM
plete negotiations for a large loan, the
n q in v-s<
states, perhaps under personal control
a. j. P. Morgan. The general impress
-cn 9nffiC .xthepahm shrdlu ahm etao
sion seems to be that a practical un-
details alone remain to be settled.
The strength that featured the New
ork stock market, in the face of un-
i1easant diplomatic conditions, was
taken as an evidence of the success of
tie bfl1ion-dollar loan commission.
Naturally the bankers want some Sc
curfty and they will probably reach a
ompromise on the amount and how 1t
- to be given. probably part American
recurities back of the bonds. perhaps
.me Endorsements by joint stock banks
of the foreign nations.
The statement has been made that
The allies had ample gold for the pur-
chase OF munitions and would go to
south America for foodstuffs, ETC.. If
denied the credit desired here
James ]. Hill, the railroad magnate.
New York, has this to say concerning
the loan: Any loan that is arranged
must be national loan. 1t must ap-
peal to bankers all over the country.
II loan should be limited to war mu-
nitions and supplies the country banks
in the west would take very little or
no interest in it, and it would undoubt-
ediy prove to be very unpopular in the
western section Of the country. IL, on
the other hand. the loan in addition to
covering credits for war munitions and
supplies shall cover the country's ex-
portable food crops and provisions,
there is every indication that the west
ern banks. even in the smallest towns,
viii give IT their heartiest support"
Mr.. Hill further estimated the excess
wheat that this country would have to
sell at GJ0.O0O.0O0 bushels. and the
worlds supply with the Dardanelles
opened 9Jo,OOO.0O0 bushels.
Bond Prices Lower.
Liquidation by foreign holders of
American bonds, in connection with
recent war loans. has caused lower
prices than prevailed in July under the
first wave of liquidation. the bonds be-
ing obtained by Great Britain by pay
ments of better than Az per cent to
the holders of American bonds in Great
Britain.
II is likely that the heavy premium
i
In bringing out more bond holdings. in
exchange for current bills. and the sug-
&c estion is made that Great Britain per- :
mitted this weakness in exchange in
the hope of inducing more holders to
deposit American bonds.
Financial Notes.
Canadian international Joan of
considerable proportions is likely to
be foated before long.
Gross earnings of the American n
Locomotive Company decreased 60 per
cent for the fiscal year ended June 80
last
With the federal reserve board. prac-
tically the government. willing to
lend millions on cotton: the wheat
men. the Gamers and a thousand and
one producers of staple goods that may
be held in storage warehouses are
looking to the time when they may
ask financial assistance. perhaps to
carry stocks for higher prices
The St Louis regional bank of the
federal reserve system has been given
u per cent rate on commodity paper
The United States Express Company
in liquidation. will make a partial dis
tribution of cash in November