Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-31
FINANCIAL-LOCAL AND OTHERWISE.

toward possibilities Of the near future.
Capital Traction, high-grade public
utility on per cent basis, is quoted
around 81; railway shares paying 7
ssA, and the preferred. a per cent
stock. 50. Washington Gas. paying
$4SO a share, is quoted at 72%. If there
was nothing hanging over these stocks
today. They have, in selling at these
| ngures. discounted, as stated before.
possibilities. which may or may not
reach the dignity of probabilities.
sion may have; just what measures they
may be able to push through Congress.
| cannot be discussed, because unknown,
| but the relative prices of these stocks
quoted above have discounted the pre-
| sumptive action.
! Nothing can be accomplished with
Congress in a day or two. 1t takes time,
and with presidential election coming
on: with a world of discussion on this
and that subject and even more on
political matters and neutrality in all
| its phases, tariffs, war taxes and other
subjects, the chances are for a busy
and short session.
And in time these matters must be
| settled. There is ample money in
Washingto to carry on a good bust
ness, and the banks are willing to loan
on these stocks and on the bonds,
though some of the latter are too high
from a local bankers point Of view for
their own use, but safe for the inves-
tor.
Some Banking Institution.
The purchase, by the National City
Company, owned by the National City
Bank, Of the International Banking
Corporations: the establishment Of
America, Russia, and now with the
branches of the International it be-
comes more than ever an I'M
portant factor in American finance.
and promises to become as important
as some Of the great Joint stock banks
of London. The National City is max
ing the greatest possible use Of the
the federal reserve system.
The National City Club, composed of
members Of the staff of the great bank,
is one of the means by which the bank
makes better bankers out Of its en-
ployes.
One means for this work is found in
an educational system of rare merit.
Male members of the staff over twenty
one. and all female employees are ex-
pected to attend school, indicating what
course they desire to take. Probably
failure to indicate might mean oppor-
tunities in other fields. Among the sub
jects offered are arithmetic, geography,
English, foreign exchanges, office work,
political economy, Portuguese, French,
Office practice, practical banking, three
classes; Spanish. in all stages, and
stenography
Four hundred and fifty students are
nine of the teachers are on the banks
staff. included in this list being Maj:
o. P. Austin, formerly of the bureau OF
statistics.
No wonder the bank can pick and
choose from its own staff when 1T re-
quires a young man for some foreign
branch or mission. Classes meet at
s:15 am. and pm
Dollar Credits.
Anent the probable change in the fed
eral reserve law to give domestic &C
ceptance authorizations. the following
extract from a recent address by J. R.
Wilson of the foreign department of
the National City Bank is interesting:
THE section itself c-elative to ac-
|ceptances) is rather ambiguous and does
not explain exactly to what extent
credits may be utilized to be in accord
ance with it's meaning and until very
recently, under a strict Interpretation
Of the law, time drafts could only be
accepted against an actual expectation
or Importation of specific parcel OF
merchandise. Such being the case, 1t
can readily be seen that this would not
answer the purpose of the act under all
circumstances; and, therefore, ruling
has recently been made to the effect
that member banks may accept drafts
covering merchandise held in store
with the intention that 1t will eventual
ly be shipped.
Another point overlooked is that the
country in which the expectation or
importation Is to originate and the
final destination of the merchandise are
omitted; hence the question arises
whether during the transit of the goods
the United States. II this is the inten-
ton of the law, It is obvious that the
restrictions placed thereon would co.,
siderably nullify the beneficial result
opinion which 1t would be but natural
to take and which It is hoped is the
intention of the act-would greatly in
crease the prominence Of the United
States dollar IN every country.
IF 1t is not necessary for goods in
transit to touch the United States, 1t
opens the field for branch banks to is
sue credits covering shipments to and
from the countries in which they are
situated, offering as a means of reim-
bursement dollar drafts to be accepted
by the parent bank in New York. Any
benefit arising from the commercial re-
lations between countries other than
the United States. which have been
naturally accrue to the United States.
do you realize the great toll which
the United States pays yearly to Lon
don banks in the form of commissions
covering sterling credits? By the es-
Enlistment Of branch banks and the
issuance Of dollar credits these pay
ments would be reduced by approx
mately SO per cent. II the United
States pays for large purchases of cof-
fee and rubber from Brazil by bills on
London, the obligation which should In
! duce a Brazilian demand for American
products Is really transferred to London,
and such influence as Is exerted Is ben
ef1cial only for purchases from Great
Britain. The same holds true in re-
gard to wool, grain, hides and meat
purchased from Argentina, nitrate from
Chile and copper from Peru.
The Only Way.
when the American importer fully
comprehends the advantages which ac-
crue to him from the use of a dollar
credit he will promptly refuse to do
business on any other terms Two
points may be mentioned in this re-
spect: The importer dispenses with all
risks dependent upon the rate of ex-
change. II he quotes his prices in dol
lars and demands his invoice In dollars
He at once knows what his obligation
is. and the risk of exchange is thereby
| transferred to the seller. Again, the
Importer saves by the reduction in the