Evening star., 1915-04-06
GUARANTEE OF DEPOSITS
OPPOSED BY BANKERS
Financiers Claim Surety Companies
Have Not Fraction of Capital
Needed to Insure.
Local Stock Exchange to Remove
Price Limitations On and After
April 15-Bonds Active.
BY I. A. FLEMING.

Washington bankers, while not hesi-
tating in the least to express their
opinion of the proposed surety company
guarantee of bank deposits. as ad-
vanced by John Shelton Williams, con-
troller of the currency, do not care to
be quoted in the press
Not one banker interviewed on the
subject favored the plan: the impos-
sibilities of such a measure We're freely
commented upon. in no way stronger
than by reiteration of the fact that it
required the united effort of practically
all of the big bonding corporations to
furnish a bond for the executor of the
estate of the late Charles Post, the
Battle Creek manufacturer
This estate amounted to only S21,Oo0,-
900. Washington banks alone have
over $75.000.000 deposits: the National
city Bank of New York has 1891 .000.-
600 deposits. and there are billions OF
deposits in and out of the banks in the
federal reserve system
One banker made this statement: 1T
would be unfair to insure the deposits
in one bank and not in another-ln all
institutions. The surety companies VIII
bond a fxed sum of deposits. within
their charter limitations, as they are
restricted to certain percentage of
their capital in their surety operations,
out they would never consent to un-
dertake to bond varying. fluctuating
deposits
Another banker. when asked his views
on the matter. said:
The bank making application TO
surety company to have its deposlts
guaranteed vruld 1T once confess
weakness. unless there was govern.
ment order forcing such action All
the bonding companies in the business
could furnish but tithe of the neces-
sary surety. Perhaps it may be the
idea Of the controller to have the gov
ernment engage in deposit insurance,
as II did in the case of insurance 10
shipping"
II is understood that the proposed
surety guarantee plan had not been
presented to the federal reserve poaru'
but might be in the near future :,
For the week ending saturday. April
.. the banks of New York city, state,
national and trust companies, shoWed
deposits of s2.396.7l1.000, in one city
alone. Compare this with the twenty
ty-one-million-d dollar Post estate.
Take of Minimum Prices.
At meeting of the members of the
Washington Stock Exchange held this
afternoon it was voted to take off all
minimum prices and permit free and
unrestricted trading on and atter
April Is.
today to the general neglect of stocks
The feature of the session was the
weakness in Washington Gas 5s. which
have lately been selling at 1o4 and
even better. A transaction was report
ed at 103. q of a point off from the
asking price Of Monday and the figure
at which the recent issue of 100000
bonds was sold.
Traction 5s were also easier, selling
at 1o4 and 104a. Washington Railway
and Electrfs IS were In good demand sat
S1E.
Potomac Electric first mortgage 5s
advanced to 1O6.
In the stock list the only transactions
were of Washington Railway and Elec-
trio common at 8s.
The preferred was nominal. with s4
with offers at 72.
Financial Notes.
The Munsey Trust Company of Bal
timore has purchased $350.0oO bonds of
the Charlottesville CVa.) Street Rail-
way and Electric Company and through
this purchase may acquire a large in
ferest in that corporation.
The Guarantee Trust Company of
New York city has accepted drafts
for $54.000.000. practically lending its
credit to American enterprise for this
amount. 1t has s2S0.00O.o 900 deposits.
Steel tonnage for March will not show
eHS HdtSf,di increase. and there are
chances that 1t will be less than in
February. About $4,000 tons a day is
the estimated total of orders; capacity
production calls for $4,000 tons a day
New Haven systems surplus for the
fiscal year to March is $1,217,l05
greater than II was for the fiscal wear
1914 to same date. Operating ex-
penses and taxes are nearly per cent
less for the current fiscal year as COM
pared with the last
Texas cotton Dlanfin1 arr~a0a sbou,
= decrease. according to an expert of
1s per ce.st and Oklahoma a decreased
acreage o. % per cent. Ultimate seed
ing for tfr crop will show a decrease
of about Is ,er cent. according to the
experts Vie<. as compared with the
planting of 1314
A seat on the New York Cotton Ex-
change sold yesterday at $1,000. a
sharp advance over recent sales.
Steel exports for April are estimated
ut 900, 900 tons