Evening star., 1915-06-13
FINANCIAL-LOCAL AND OTHERWISE.
BY I. A. FLEMING.

| The greatest confidence in the present
and future of the United States is
| found in the financial districts of New
York city and in the middle western
section. The optimism in these sec
tions is of the kind that will not down
and for reasons that would seem 10 oe
more or less logical.
| In the east it is money that rules
and since the introduction of the ne"
federal reserve monetary system the
east can see no further chance for
panic, even in expansion and in times
| of more or less nervousness. Out in
the western section the promise OF the
| harvest. full and encouraging. with
| prospects of high prices. is sufficient to
| make even wise operators beneVe IN
the future.
| Neither east nor west look for ma
| rional disturbances. Just what would
| actually happen, in the event OF a reai
disturbance, is problematical, but the
optimists are not looking for trouble
with mills and factories running
! overtime in the manufacture of mu-
nitions and with improving activities
! in lines of peace, with money easy ana
always going to be- with the balance
| of trade in favor of the United states.
peace is in effect American activities
will be at a zenith in replacing de-
| struction now going on, the advocates
| of better times are dominant IN their
hopes and belief.
It is admitted that much of the idle
money now offered for the use of bor-
| rowers would be used. in times of or
dinary business activity in the United
States, in business lines The argu-
ment against any stringency in activ-
| hot &c - q linn
| ed good times in general business would
produce the needed supply of CONNER
cial paper for rediscount at the fed
eral reserve banks. this operation tend
| ing to keep the money market easy.
Moreover, in the east financial men
| have lost every bit of fright. the very
| obsession that possessed them in Au-
gust, 1914-the fear of Europe dump
| ing American securities on TINS mar
ket Europe has sold securities, but
not at all heavily. 1t Is more and more
apparent that Europe is not going to
sell American bonds and stocks with
any freedom They are the only Sc
curities worth while.
1t is natural that investments OF the
various countries now engaged in the
foreign investors. holding American securi-
ties, will consider themselves fortunate
and hold them as long as possible
Wall street would welcome a large block
OF american securities from
payment of some of the enormous obliga-
tions being created in this country. The
problem of ffnanciers is the handling OF
credits for the nations that are deluging
American manufacturers with war orders.
and the unloading of our securities, the
threat of which made us tremble, a year
ago. would be welcomed at this time.
There isn't enough commercial paper
to go round the various banks it is not
being made fast enough. Securities are
not available for rediscounts. but they
are the desirable collateral for time loans
and the New York banks and trust COM
panies are ready to take all offered at
low rates. That these institutions are
willing to take the funds of banks un-
| employed and pay per cent interest is
the reason why they getting the funds
from the interior.
Crop-moving time is not far away, but
bankers do not look for any stringency at
this time.
A Way Out.
More state banks and trust compa MES
are likely to come into the federal reserve
system now that the reserve board has
| made the withdrawal therefrom compare
lively easy. after one years membership
The intent and purpose of the board
and of the law makers in enacting the
law was to bring all banks into the sys-
tenn. If possible National banks were
| only way for a bank to retire from the
system was by the same route
Now state bank or trust company
| may retain its charter and do business
| as usual, giving years notice of de-
sire to withdraw and, when the time rolls
around, receive the desired release from
the reserve board.
Suspends Withdrawals.
! The announcement is made that the
government has stopped the wthdra walls
OF government funds from national banks
The Treasury Department has retained in
| its vaults the money taken from banks
ana mas not placed the cash in federal re-
- s~a:l institutions
| Officials of the Treasury hesitate IN
continue Withdrawals dreading the
possible effect on business although
they probably realize that business is
not satisfactory from the standpoint
| in certain peaceful lines.
me department is reported as be-
| Ing impressed by "a certain lack of
stability in the general business situa-
1t be ascertained that the Improvement
in business extends to lines that would
not be affected by fictitious prosperity
it is expected that the Treasury will
put into effect its policy of making
federal reserve banks its fiscal agents"
Just why the Treasury should pull
out government deposits with activity
in general lines, remains to be seen
1t might mean that such activity in
lines unaffected by fictitious prosperity
would make for larger supply of COM
mercial paper, all that is needed to
take the money from the reserve banks
in rediscounts. and then government
funds could be employed
The Week in Local Securities:
During the week just closed, Ga