Evening star., 1915-02-13
WASHINGTON MARKET
FOR SECURITIES STEADY
Weeks Record Shows Few Impor-
tant Changes in Either Stocks
or Bonds.
Federal Reserve Board Defines Ac-
ceptances and Gives Them Pref
erence in Rediscounting.
BY I. A. FLEMING.

BY I. A. FLEMING.
Values on local securities, with the
exception of one or two stocks, seem
10 have found fairly fixed price in the
opinion of observers, and the fiuctua-
tions from day to day are not impor-
tant. The action of the governors of the
exchange in reducing the minimum on
Mergenthaler shares has resulted in
some little business in that stock. and
today a number of odd lots sold at 1l3.
an advance of nearly 10 points from
the low of last week in Boston. the chief
center of Mergenthaler stock activity
Washington shareholders have conf
,ience in the security as 10 per cent
dividend payer. and believe that after
PEACE has been declared the European
business of the corporation will war
rant the resumption of the extra d1vl-
dends.
A sale of National Metropolitan Bank
stock was made at 100, and this price
was bid for more. 200 being asked; Inc
quotations for Commercial Natlonat
Bank shares were 100 bid ana Zoo
asked.
Bonds were less active, but steady. at
sO5. for Railway As, 992s for Potomac
Electric consolidated os anu IVVN ~,
Riggs Building 5s, long-term maturity
Dividends declared.
The directors of the Continental
Trust Company have declared quar-
terly distribution of IL per cent. pay
able March 10 to shareholders OF rec
ord March 10.
Regular dividends on the preferred
and common stock of the Washington
Railway and Electric company hd'o
been declared.
Acceptances.
Another step in the development OF
American finance designed to bring IT
more in accord with that of other ma
tfons. has been taken by the federal re-
serve board. 1t has issued regulations
governing the discount or purchase OF
bankers acceptances.
The federal reserve act authorized
national banks to purchase acceptances
based on the Importation or exporta-
tion of goods The boards regulations
indicate how banks may avail thenl-
selves of the aid of the federal re-
serve banks in securing the red1scount
of such paper. and lay down the lines
bv which the reserve banks themselves
will be guided in purchases OF accep-
tances in the open mraket-
Effect Is Problematical.
Before the federal reserve act was
passed domestic dealings in acceptances
were confined to state banks, trust
companies and private banks. How
far American banks now may proceed
in taking away from London share
of this business, a considerable part or
which is done with South America, Of
ficials here do not now pretend 10
know.
Although under the new regulations
the reserve banks are not barred from
outright purchases of acceptances. .ne
board indicates present preference
for discount of such paper presented
by member or other banks
The board announces that acceptances
must be payable in dollars, in the
United States" a step toward making
the dollar at least one of the mediums
OF. international exchange
The federal reserve board has defined
the term "acceptanceS as draft or
bill of exchange drawn to order. nav
ing a definite maturity and payable in
dollars in the United States. the obli-
cation to pay which has been accepted
by, an acknowledgment written or
stamped and signed across the face OF
the instrument by the party on whom
it is drawn. such agreement to be to
the effect that the acceptor Will pay at
maturity ACCORDING 70 the TENOR OF
conditions.
Acceptances must be made by bank.
banker, corporation or person or firm
in business of accepting or discount
ing.
The federal reserve board believes it
to be in accordance with the spirit of
the currency act to accord preferential
treatment to such acceptances bearing
the Endorsement of member banks and.
will sanction a slight preferential rate
even below the fixed discount standard.
Regional banks are advised that
when sufficient amount of accept
ances. indorsed by member banks, as
indicated. are not available, they
should purchase, in as far as possible,
acceptances that bear some other re-
sponsible signature than that of the
maker and preferably that of a bank
banker.
Treasury Statistics.
Disbursements by the Treasury De-
partment for February IL, show an ex-
cess of disbursements over receipts of