Evening star., 1915-05-23
FlNANC1A1-LoCAL AND OTHERWISE.
By I. A. FLEMING

But a fraction Of the business OF
Washington investors 10 transacted on
the Washington Stock Exchange. As
la general proposition investments IN
local securities are more or less nxeo'
land the daily trades represent, In large
degree, purchases by banks seeking
employment of their funds. the SHIFT
ling of holdings from one to another
lsecurity. the Investment of new funoss
the taking of profits offered by ADVANCE
in values and the sale Of investments
when other uses require funds.
Washington investors have taken
lvery large amounts of high-srade
bonds during the last few months, ana
have also realized on increased prices
for investments made in low priced
stocks purchased months or years ago.
only local securities are traded in on
1.-THE Washington exchange with the ex-
|ceptIon of a few corporate stocks IN
which local investors are interested
MANY of the investment orders are
given by customers of banks direct 70
the cashier president of the insti-
tuition: frequently an order will be
sent by mail incloslns the hs cer,1dcaor ae1d or
order for investment to be paid Tor
and charged to the account of the m
vestor, or, in the case OF sale, tne
proceeds to go to the credit OF the
account of the seller. This business has
reached large proportions. The banker.
in turn, phones the order to his favorite
broker There is no profit whatever
for the banker in the transaction otner
positor.
The purchases by banks Of bonds
for their own use is usually In an e1-
fort to employ their funds in these
times when the legitimate employment
of cash in industrial and business en-
ldeavor is at about the lowest ebb in
years. Lists of bonds are being con,
stantly offered to local bankers and
their purchases this year to date will
possibly total over $6,o00.00o, to say
nothing of the acquisition of local util-
ity bonds. So general has been the de N
mand for hish-grade bonds during the
year to date that bond houses com
plain not of the Inability to sell, but
of the difficulty in replenishing their
supply with the same Kind OF ool-
cations. -.-.-
Money is very plentiful. and any one
with the proper collateral. or entitled
by rating and connection to accom- :
mediation. will not have the slightest
difficulty to secure accommodatlons' ;
the banks are looking for just such
borrowers.
The federal reserve law and the gem
eral dullness in commercial and manu-
featuring industries, other than in the
execution of war orders. have been re-
sponsible for the abundance of cash
The chances are that the current
i rates are likely to remain Tor some
time, even through the crop p-movins
periods, as the resources of the re-
gional banks of the federal reserve
system. in the matter OF rediscount-
ing commercial paper. have really not
been more than thinly SKINNED by the
demands to date.
Commercial Paper.
Commercial paper rates are about the
same all over the country. AS usual
thing, the farther west Of New York
the higher the rate on paper. Rates
| today are BIZ to per cent for paper
all over the east, middle states and
western country: nor are they likely
to be advanced during the balance OF
the year New York is the paper mar.
ket of the nation: there makers OF
paper obtain their discounts. as rule
The uniformity of the rates OF paper
in the federal reserve system IS anotn-
er evidence of the easy money sltua
tion in all sections. Any lowering of
| rates would cause interior bankers to
withdraw their funds and send them
| to their correspondents at the usual IN
| terest rates.
Seek Modification of Ruling.
The Illinois Manufacturers Associa
board to modify a ruling made by it
to the effect that national banks can
not combine to establish branches in
foreign countries The claim is made
| that eastern banks. by reason OF the
| esta ablishment of many branch banks
by the leading institutions. have given
| the eastern manufacturer the adran-
tape whereas the western manufac-
turer, by reason of western banks
being unable to profitably support
branch bank. has been placed at DIS
tinct disadvantage The association re-
quests that the federal reserve noaro
permit any association Of banks to es-
| tablish branch banks in foreign coun-
tries as in their judgment are neces-
| sary to carry on the foreign business
of western manufacturers.
This action recalls the urgent pro
test made by William S. Kies OF the
National City Bank of New York on
| the provisions of the sherman law,
which seriously handicaps the devel,
| opment of the American export trade.
and his urging OF some amendment by
| which combinations OF manufacturers
| may be made to obtain general m
formation to disseminate in trace. Tor
| the value Of members engaged IN the
| same line of business, and take other
action to advance export trade.
What They Will Discuss.
George T. Roberts. assistant to the
| president of the National City Bank Of
New York. commenting on the Pan Amer
can conference which will open its ses-
sions tomorrow morning in this city. has
an interesting article in this months is
sue of The Americas. After calling at
tention to the stoppage Of all investments
in new enterprises in South America as
result of the war, Mr.. Roberts says. In
part:
But if our neighbors with vast unde-
| veloped resources are interested IN al.
ira citing a flow of capital from the United
states the situation should be equally
Interesting TO us. The United states Is
AZ the very point In its history where
naturally it should turn a portion OF It's
energy and constructive ability to the
ldeveiopment OF these neighborfng coun-
tries. This country has reached stage
of progress where 1t can advantaseously
spare capital to open up the resources OF
regions that are less developed, just as
The eastern states Of the United States
have found 1t advantageous to invest
portion Of their capital in the middle
west and beyond the Mississippi. instead
OF keeping 1t all at home. The east mas
enlarged the market for Its Industries.
and had more money to invest at nome
bv reason of its investments IN the west
Along with the growth OF cities ana
the development of great Manufacturing
industries there must be new sources .!
food supplies and the raw materials that
enter into manufactures. These have
been found in our western states hereto
fore but the rising prices OF receht
Years show that the supply has not kept
nace with the demand and II Is less IKE