Evening star., 1915-02-08
GOOD TONE IN MARKET
FOR LOCAL SECURITIES
Railway Common Strong at 80.
Bonds Were in Good
Demand.
Controller Will Modify Order on
Overdrafts-Comme on the
Ru1ing-Notes.
BY I. A. FLEMING.

speculative movement in these Securi
tres At this time.
Washington Railway and Electri
common touched a new high since tn
reopening OF the exchange. when
sold at 80. The preferred shares of tn
same corporation were steady at "a
Washington Gas was a little firmer
stiffening to 741s. An odd lot of Com
mercial National Bank sold at 1s0.
In the bond list. five-hundred-dollal
bond of the Capital Traction Compan!
sold at 1861. and a one-thousand-dol
lar bond at 105N N. Gas 5s were firm a
l04h to l0415. Potomac Consolidated
Ss at sex were strong. The first sail
of the year of Washington Market
PER cent bonds. maturity 1854. was re
ported at s6.
There was more interest shown in thu
session. a larger attendance Of mem
bers and spectators. a reduction O
some of the minimum prices is prob
ably u matter of short time.
On overdrafts.
An carly modification of the controller:
order for the elimination of overdrafts
Is promised. Since the circular Of Janu
sry IS was sent out, many communica
tons have been addressed to the con
troller giving the views Of bankers, citing
Instances where law suits may be courtet
by acton in conformity with the ruling
Many bankers are using the controller:
order as a club to stop oVerdra1ts p1
privileged customers
The following interview with the con-
troller of the currency was issued by the
Secretary IF the Treasury:
The controller of the currency said
This office has received many responses
from banks in various sections of the
country to its circular letter Of January
o.. relating to overdrafts. These letters
generally commend the efforts of the Of
."e TO abolish an evil, which, In some
10 '.ties. had assumed large proportions
u. which has at times caused serious
- : 20 many banks
Many of the letters received sug
gest that certain notifications of th'
order be considered. so as to preven
snnoyances that might possibly follow
a too rigid enforcement These Sug
gesrjons, which are based upon the ex
perierces of many banks. under vary
ing conditions. l am pleased to have.
IF the office finds that a way can b.
legally found to cure the abuse of over
drafts ana at the same time preven
hardships to those who may uninten
1ionally overdray their accounts, o.
tiouaIly oyerdraw their accounts, o.
he abundantly secured, I shall. in ac
cordance with the earnest desire of thu
department at all times to give tn
fullest consideration to the convenience
OF the banks and their customers, iSsu'
such notifications of the order of Janu
ary 2S as the facts now being developed
may justify.
Il am gratiied to report that goot
progress has already been made in tn
matter of reducing overdrafts. Tn
overdrafts in national banks for tn
1nately sa7 1000. 900. the highest amour
during that period being $4I;0oo.0oo
AT the call, October 81, 1914, this hat
been reduced to less than s19.oo0,0oO
and it is believed that the amount cal
be very much further reduced. II no
entirely eliminated, to the mutual ad
vantage of the bank and their clients.
The effort of the department to abat
.be abuses of overdrafts Is based upol
sound banking and business policy, AM
affords no reasonable srouno LOT eo'ii
plaint-"
her of bankers that the order was no
prepared with view OF chang1nt
methods of doing business in wash
ington. but with especial reference u
n1,bern and far western banks
where the overdraft is one method o
doing business
The Financier's Comment.
The Financier of New York. in com
menting on the controllers overdraf
circular, calls attention to the positiv
language used in it; refers further Z
the fact that the state banks had beel
consulted, and says:
This is the first time that a controlle
of the currency has endeavored to ap
ply a rule directly and by indirectiol
to banks of all kinds. state as well a
national The law is supposed to dea
with the oyerdraft question. AS
matter of fact, nobody hates an over
draft more than the average banker
To that point the controller and banl
officials are in accord, but even tn
peremptory order of the head of tn
national banking system cannot de
stroy the existence of the overdraf,
nor is it to be said that ruthless or un
Intelligent enforcement of the rule /
desirable.
''overdrafts are of two kinds. On
arises from the practice of the careles
or inlprovident depositor who takes
chance with his bank; the other re
suits from thousand different causes
beginning with the weather, which in
terferes with mall communication, an,
running through the whole category o
human error in the matter of addition
subtraction. etc. An overdraft of tn
nature Just named is technical, or a
least unintentional. 1t is also NOR
frequent than the other kind.
Every good bank prohibits an over
QCa1t, DUt IL Is no sign OF lntelllgen
administration to embarraSs valuabl
customers by holding them to the yer
letter of extreme interpretation: some
times it is even dangerous legally t
try to do so. for a bank is not infal
Iible, nor more free from clerical mis-
take than d depositor. and what tn
bank looks upon as an overdraft ma
turn out TO be a lawsuit AS to tn
policy OF offending customers and thu
diminishing profits. each bank is a la,
unto itself, for 10 rule can be lai
down that win cover this phase Of tn
business Our own opinion Is that tn
controller has been just a little hast
in issuing broadcast to all banks an OF
der that can apply to only few {
them, and this being true, the rathe
peremptory tone of his communicate
is uncalled for. Perhaps the languag
might have been regarded as proper
embodied In an order or request (
banks which do permit overdrafts, bu
here also. as in the case of busine.
policy and courtesy, no rule can b
applied, and judgment will have to b
reserved"
Treasury Statistics.
The daily statement Of the Treasur
Department for February showed ths
the disbursements exceeded the receip,