Evening star., 1915-12-26
BY I. A. FLEMING.

BY I. A. FLEM1Nt.
The year now drawing to a close has
been a fairly prosperous one for the
banking fraternity, but they have been
compelled to be on the alert to keep
their funds working. as the demand
from commercial and collateral bor-
rowers, prier to October. was not suf-
fcient to furnish the necessary en-
ployment for deposits and other re-
sources Moreover, Washington banks
now hold larger deposits than ever be-
fore, probably close to ss7.000.o0 on
much of which interest must be paid.
Hence 1t was that the bond statesmen
have enjoyed a greater prosperity than
ever before, probably not less than
100000 of bonds being bought by
local bankers during the year, some of
which have been sold and on nearly all
of which profits have accrued. One
bank credited itself with 100000 profit
from bond transactions alone.
Moreover. there has been decided
Increase in the value of bonds carried
over from last year, bonds and other
collateral, SO that in the equalization
of assets some losses written off a year
ago will be more than recouped by the
improvement in these securities.
With the large number of banks, for
a city of the business Importance of
Washington, it is encouraging to know
that they have all made money, all de-
clared their regular dividends and that
one or two have increased their pay
ments.
Practically the only grumbling. IL one
may call it by this name. is on the part
OF some bankers over keeping their re-
serves, or rather such large part of
them. with the reserve regional bank
at Richmond without interest and over
the further fear that the reserve board
may make the reserve system of COL
lections compulsory, which would still
further take profits out of the banks.
Recommendations recently made by
the national bank section of the Amer
lean Bankers Association for a lessen
ing of capital, and other important
changes may make for satisfactory al
terations in plans of the reserve board
There having been no emergency dur
ing the year, the federal reserve sys-
tenn in Its full workings has yet to be
observed. but bankers have faith that
II Will NIL requirements, when needed.
New York Stock Market.
All things considered, the New York
stock market has given a good ac.I
count of itself. With thousands OF
shares of stock and millions of bonds
being liquidated for foreign account,
the bears have been able to make but
little headway. The absorption has
been very satisfactory to good Judges
of market conditions and the under
tone can not be termed weak.
With the most conservative opera
tors, the utter lack of interest in the
railroad shares has acted as the most
potent argument against either specu-
lation or investment, but the manner
in which the rails are responding to
the excellent earnings at this time
cement
and more liberal traders alike.
Peace talk and peace rumors were
accredited weeks ago with breaking
the stock market, and yet peace is ap-
parently farther away today than it
was weeks ago at least; apparently,
no nearer.
The metal shares and all industrials
In the steel, copper and metal line have
displayed great strength.
Spectators are not in the market to
any great extent, but the public is only
waiting for evidences that the turn
has actually taken place before get
there is a second general rise to the
market, will be cashed in and not al
lowed to pyramid and then be wiped
out in the rush of liquidation.
Indications are for the usual January
rise in the market. for there will be
millions of dollars paid out in interest
and dividend checks in January, and
this money will naturally seek more
in the same field.
Investors who may be worrying over
proba ability of an increase in the IN
come tax may find many bonds upon
which the corporation issuing them
paying the income tax, just as very
many corporations have assumed the
payment of the normal tax on their
have consumed the responsibility of
share of capitalization. There is list
of corporations paying income tax on
their bonds available to investors. and
a prospective buyer can readily OBTAIN
on payment OF normal TAX
on stocks 1t should be taken into
Consideration in these days of assur-
ance of Increased taxation.
Rural Credits.
Soon after the reconvening of Con-
gress the rural credits bill Will De re-
ported out of committee and be before
the House for action. Hearings nave
been held and officials of the Treasury
Department and of the federal reserve
board have been before the committee
as witnesses. The bill will be prof.
fered to the lawmakers with two sec
tions. one group presenting land mort
gage credits and the other the personal
credits The Hollis-Bulkley bill, which
almost reached enactment in the last
session, is practically incorporated In
the land credits report, but the per-
sonal credits proposition stiH remains
more or less of a mystery.
No matter what the Recommendations
of the committee on the latter ques-
ton there is sure to be bitter fight
on it. The credit subject is always in
teresting, but especially difficult Will
be the work of framing an acceptable
rural personal credits bill that con-
servative legislators can support.
The northW est agricultural prpresen-