Evening star., 1915-11-28

I Bankers Association on his "usury
| circular" the controller of the cur
| rency calls attention to the fact that
| there were two banks in the Dis
| trict of Columbia that admitted charg-
ing IL per cent or over on loans
! The controller does not say that
| these were national banks. although
| this might be inferred from his open
| letter. The legal rate of interest in
the District is per cent
A number of presidents of national
banks OF this city have expressed the
opinion that the alleged infractions
were not committed by banks operat-
ing under the federal reserve law, nor
BY the trust companies or savings
| banks of the city.
There are institutions which are in
reality not banks in the accepted term,
but societies, lending money in small
amounts to borrowers who usually lack
credit facilities at banks, but reasona bly,
good at that, in that they have TWO in
uorserS TO every note and that personal
investigation is made by the companies
of makers and indorserS.
The rate of interest paid by borrow
ers is presumably per cent, but the
note is discounted, that is, interest is
taken out of the principal on pay
supposed to be on weekly instailments.
Because OF the manner of the pay
ments the interest rates figure close to
or a little more than IL per cent, but
these institutions are supposed to be
working under the law and within
their rights.
1t may be these that the controller
refers TO in his latest communication.
bankers suggest.
Dinner to H. H. Mckee.
Tuesday evening of this week a
testimonial dinner is to be given by
the presidents of the national banks
of Washington to II. II. Mckee, cashier
of the National Capital Bank
The affair, which will be given at
the University Club, Will be in recog-
milton OF the services of Mr.. Mckee as
secretary OF the Washington Currency
Association, organized to handle emer-
gency currency issued under the
Aldrich- -Nreeland act in this city, and
the first association of its character
incorporated in the United States.
Immediately on the outbreak of the
European war financial conditions fur
nlshed the very emergency necessary
to make that Jaw useful. in quieting
the nation, more than S3SO.000, 600 of
these funds being issued. The bur-
den of the work in Washington fell
largely on the shoulders of Mr. Mckee.
ana it is in token of appreciation of
his efforts that his associates will do
him honor.
James D. F. Schneider Promoted.
James D. F. Schneider has been
chosen by the directors of the District
National Bank as assistant cashier. a
position created for him and made
necessary by needs of the institution.
NJ
teller OF the District National since
its organization five years ago, has
been nine years in the banking busi-
ness. He entered the employ of the
Harper was its president. and later
followed him to the District National
New Brokerage Firm.
John L. Edwards e. Co is the title
of new brokerage firm THAI will be-
gin business December /, at 1415 G
street northwest.
The senior member of the firm has
been engaged for many years in the
real estate business here, and for the
last six years in the security trade,
being a member of the washington
stock Exchange. and its secretary as
we'll
Mr.. Edwards is Washington man,
having lived here all his life.
Francis A. Connolly, who for the las,
five years has been assistant manager
of Hartman & Co.'S branch office in
this city, will be connected with the
new firm. He is thoroughly familiar
with the New York stock end of the
business and probably will be the man.
ager of this department.
Private wire connection direct to the
Wall street Offices Of Z. S. Hutton &
Co. will also mark another effort on
the part of this olL-time firm to obtain
a share of Washington business, the
first in a number of years.
Profitable Investments.
Washington bankers started with the
opening of 1915 to purchase bonds very
freely. The large supply of money
for which there was small demand, was
rapidly invested in short-term notes
and high grade bonds.
The bond market has been at its very
best in the last few weeks Prices are
now at about the top, and bankers can
cash in with good profits on their in
vestments in addition to the interest
that they have received from their in
vestments.
This business has been a very val
liable aid In rounding out year that
would otherwise have been lean, be-
cause of the restricted uses of mon ey
in general business and the great abun-
dance Of cash-more than ever before
to the credit of the people of Wash
ington.
Expenses of banks have increased
ma terially during the year National
banks have lost interest on that par,
of their reserves held in the regional
bank of the federal reserve system, and
they will not receive returns from their
subscriptions TO the federal reserve re-
gional banks stock.
The demand for money has shown
some Improvement of late both fol
commercial loans and building accom-
modations.
Trust companie have been more gen
erous in their treatment of high grade
apartment loans, as evidenced by the
process of erection throughout the city
The ruling rate remains at pei
cent.
Local Securities.
| A slow, un!nteresting market featured
1 the daily sessions of the local stock
! exchange until the final session. when
/ a spurt of activity seemed to give
utility shares.
I Railway and Electric preferred were
! absorbed freely yesterday. IL may be
4 block Of the preferred stock. in which
event higher prices might be expected
With money obtainable In large
| amounts at per cent on sfx-month
/ paper, there should be bargains on the
ceeded in buying $4,000 tons of forg-
in2s and 10000 tons of round bars for
! shiprent over the first half and third
/ Cparter OF 1916 Several new inquiries