Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-03
LITTLE LIFE SHOWN
IN THE LOCAL MARKET
Lanston Lost One Point, Selling at
s0-Washington Gas Sold at
II and Closed Weak.
Reserve Board May Force All Mem
Der Banks Into Collection Sys-
tem-Important Rulings Made.
BY I, A. FLEMING.

There was very little Investment de-
nand for Washington securities and nc
speculative inquiry whatever on the To-
cal stock exchange today. Interest IN
Lanston Monotype shares subsidized
some orders that were In evidence yes
terday around 81 being Cancelled SC
that when the stock was offered at that
figure IT was not taken, the bid being
reduced to 80, at which price ight
sales were made. 80 shares in all.
Washington Gas was the only pup
lie utility stock showing on the safes
record, a quotation lot being SOLO al
~ with more offered at the same price
and 7e the ruling bid.
In the bond list Potomac Consoh-
dated SIS at 1907 and Washington
Railway As at 81ss, with hve-hun-
dred-dollar bond at S21s completed the
days record.
FOR the week ended with today's SEES
s,an sales in the aggregate were $4,000
bonds. at par value, and SIS shares OF
stock of which 4o1 shares were OF
I,anston and 105 Washington Gas.
araphophone Strong.
Graphophone stock has peen very
strong. but no special reason Is given
for this strength. The last sale OF the
common stock was at So
Nav Force Banks In.
Indications are that the federal re-
serve hoard will come out boldly ana
undertake the formulation of rules ana
repulations that will force all MEM
her hanks to enter the fntradlstrlce
c,earines system, in the hope OF being
able to accomplish their purpose OF
waking the interdistrict collections
success. according to discussion IN gen
eral financial circles.
such action seems to be indicated by
the information asked for by the con.
troller of the currency. Replies 10 the
new Questions are to be made In re.
sponse to his next call for reports OF
condition. Questions are asked as ~
the profits of the collection department
of the national banks OF the country
during 1912-13-14. -
If any such action as indicated Is
actually taken 1t will be in direct
opposition of thousands OF great nanks
of the country. banks that nave !ounu
their collections contributing largely
to the profits of the institutions.
Experience has shown that banks VII!
not enter the collection system at an
freely. But two of the member banks
Of the District of Columbia have sent
their fntradistrict checks to Richmond
The loss to the banks making large
collections would not be as heavy on
tntradistrict as on interdfstrict col
lecttons, although a very large part or
the collection business here is on VIZ
ginia, North Carolina and South Caro-
lima checks.
with free collections all over the
United States many banks would lose
large revenues, as the federal reserve
board will be informed when the In
formation of the last three years col
lection profits are given to 1t by the
controller Of the currency.
Said one bank official: There Is no
reason why we should accept a check
drawn on Chicago or San Francisco for
81 or $4,000 without some resultant
profit We are called on to pay out cur
rency on an instrument that is not cur
rent cash that will be two to eight days
in transit before the actual cash Is re-
turned to our vaults. A wise manipula-
tor could make a fortune, perhaps small
one, on interest of money kept in bank
during the transit of checks drawn
against 1t. Our checks, in turn. might be
cashed In Chicago. San Francisco and
elsewhere and the same time would ex-
pire before the actual money was returned
to the cashing point-provided they were
amply protected by deposits"
It is said that majority Of the federal
reserve board believes, and the belief Is
well founded, that adequate clearing IA
cilities cannot be obtained until partici-
patton of all member banks is made man.
datory.