Evening star., 1915-01-22
CASH ACCUMULAT|NG
FREELYM THE BANKS
Low Charges on Time Money Force
Down Discount Rates of Re-
serve System.
Munsey Trust Company Earnings for
1914-Other Local Financial
News-Gossip.
BY I. A, FLEMING,

The leSSenfng use OF money IN new
enterprises and also in certain old lines
of business is having the effect of Pill
ing up the currency in the banks. IL
Washington as elsewhere. Some loca
institutions are carrying as high as y
per cent in reserves, where but is per
cent is actually required. and mucf
larger percentage than usual of TN:
reserve Is in actual cash. This is
complete reversal of conditions as com
pared with those of a few weeks ago.
While local bankers are making fe"
collateral loans at 5 per cent, the pre-
vailing rates for commercial accommo-
dations are 81: to per cent. In Ne"
York call money loaned as low as fs
per cent. while per cent was the hleh
rate. Time money is loaning there at
%. per cent for sixty days, per cent
for ninety days, 3H to 31a for four to
five months and 81 per cent for SIX
months.
Rediscounting rates in New York for
banking correspondents have been
steady around per cent on sixty 10
ninety days paper.
Under such conditions the federal re-
serve banks have finally knocked the
props out from under some of their re-
discount rates and they are now lower
than at any time since the inaugura-
tion of the system. Reductions have
able southern bankers to retire their
emergency currency, of which about
s5o.oO0.00o is still in circulation in that
section. y per cent rate has oeen m
troduced on maturities up to sixty
days at both the Atlanta and the Rich
inond regional banks.
This should have the effect of large
~ increasing the rediscounts with these
banks, especially as loaning rates In
south have not sustained any reduc-
ton.
The plethora of money should have
u very favorable effect on the invest
ment demand for securities and espe-
cially for bonds.
Richmond Regional Bank Objects
Some time ago New York bankers
Informed their local correspondents
that drafts drawn on the Richmond
regional bank would be accepted as
cash. Washington bankers. or at least
some of them. took advantage Of this
ruling to obtain Baltimore funds, send
these to Richmond to the regional bank
and draw against them in favor of
New York correspondents in order to
obtain New York funds. credits there
being generally in urgent request in
Washington.
This movement created a debit bal
ance against the Richmond regional
and forced the shipment of gold to
New York. adding considerably to the
expense of operation.
The Richmond regional bank has
therefore served notice that charges
will be made hereafter against the
member bank for whose account cur
rency must be shipped. This will natu-
rally stop the practice at least until
rency can be shipped direct from here
as cheap as from Richmond.
Munsey Trust Company.
During the year 1914 the Munsey
Trust Company reported gross earnings
Of ss5l.ss7 and expenses Of s13s.Sss.
leaving net earnings of s213,059. or
1855 per cent on it's capitalization of
s2.0o0,e0o.
At a recent election of directors Co.
lin H. Livingston, vice president of the
American National Bank. was chosen a
director and R. Lancaster Williams of
Baltimore retired.
Dutch Market Dividend.
At the annual meeting OF the board
of directors of the Old Dutch Market
the directors declared the regular semi
annual dividend of per cent on pre-
ferred stock and 10 per cent annual
dividend on common stock. The COM
pany's business was shown to be in a
prosperous condition.
The company is seven years old and
has paid 10 per cent to stockholders
each year.
Trustees Elected.
A. the annual stockholders meeting
o. The Washington Hotel Company. held
at the Continenta! Iiotel, the following
trustees were elected for the ensuing
ear, y. y. Birney. A. Z. Clark, jr..
William V. Cox. William 7. GalIiher,
James Lansburgh, Theodore w. Noyes,
Samuel J. Prescott, Thomas Somerville,
Edward .. Whitford, Rynear II. Will
lians and Alexander Wolf. The board
of ofsrustees later organized and the fol-
lowing officers were elected: Edward
y. Nhitford. president: Arthur A. Biz
Ley. vice president; William V Cox,
treasurer, and Alexander Wolf, secre-
ttrr-
Sterling Exchange.
\ number of New York bankers have
recently cabled the Bank of England
making inquiries to the Willingness
of that Institution to part with gold
and at what price. The answer was
an invitation TO make bids for the vel.
low metal if they wanted to bring IL to
this side of the Atlantic. New Workers
characterize the answer as clever" In
that it forces the New York bankers
TO show their hands. If "A bid Is made
for gold II would probably be refused
and in this way the Bank of England
would give no indication of its inten.
tions to the outside world. Sterling
exchange is at L point where goI.
would bc imported in normal times
Call for Payments.
Payments of the second installmen'
on the capital stock of the regiona
banks in the federal reserve system
must be made February =. The frs
installment of onc-siXth of the tota
amount Was made November 2, and tn,
provisions of the law require another
sixth Within three months and a thirt
within six months thereafter
Local Securities.
Washington Railway and Electric pre-
terred stock was the only feature o.
the local market. and the stock wa
firm at 81. Bonds we're "A little frmer
with transactions in Washington Ca
% at 103 and 103 Is, and in Potoma,
Consolidated Electric 5S at 991a
OIL STOCKS