Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-02-20

Great Britain. Tho last statement or
the corporation showed that 1t nao
the enormous sum of sos. 100000 cash
in banks.
The first mortgage Steel IS are the
bonds turned over to Andrew Carnegie
and his associates for their holdings
and are ahead Of the Steel 5s, which
are now selling on Wall street around
los. - -. --------
The first IS have recently been quot
ed between 112 and ia. The purchase
Corporation and in time may be re-
tired. The total amount OF first 5s
put out at the time of issue was $780,
| 000, 900, but the corporation retired
$51,s5s. 900 of this issue before buying
the Carnegie block, the first of his per-
sonal holdings to be marketed, ana
they come indirectly through his foun-
dations in Scotland. This leaves $222,-
342, 900 still outstanding.
| Mr.. Morgan is authority for the
statement that further loans made for
Great Britain and France in this coun-
TRY must either await the distribution
Of the $500. 100000 loan which has not
been fully digested, or will have to be
secured by American securities.
1t is further stated that he bulk
| of foreign securities that have been
marketed by ]. P. Morgan & Co. have
been largely American bonds and in
cluded but small amount Of stocks.
although Wall street has held to the
idea that large quantities of stocks
l. had been unloaded.
It is also evident that Mr.. Morgan
| has in mind the control of liquidation
of securities modified by Great Brit
be called upon to bear too heavy a
burden, but may absorb the supply
gradually. Bonds, for which there Is
an excellent demand, and particularly
for the high-grade issues, Which Tor
eien investors will give up last, may
| be marketed at any time.
Big Gains in Assets.
Washington banks and trust COM
panies, in common with banks all over
the United States and in direct con-
tradistinction to banks in the warning
nations have profited immensely by
the advancing trend in security and
bond values-this with direct reference
to high-g grade securities and with no
reference to war brides or other
speculative favorites.
| Assets that had been reduced and
written off in the slump of 1914 came
back with good returns in 1915. The
bond market has been steadily advanc-
ing and. as banks have been compelled
to buy bonds freely to find employ
ment for their funds. they have made
handsome profits on these investments
especially where they acted wisely in
their original purchases.
| London banks show heavy losses on
investments. a natural result of the war.
Some London banks continue to use
book values based on cost, but the
values. thereby demonstrating the
truth Of the old adage. lone cannot
fool ones self"
Most Of the leading New York banks
ing large dividends.
| The First National paid 3s per cent
exclusive of the First Security Com
pany. and made net profit of ST..
$4,000. The National City Bank paid
10 per cent dividend, plus $2.s24.oot
net profit, exclusive of the National
City Company. The Guaranty Trust
Company paid % per cent and made a
net profit of s1,6ss.oO0. The Bankers
showed a prot Of ss.s4aoe ee n eeh' T fhe
Chase National paid 20 per cent divi-
dends and showed net profit OF
$3.50 200.
The profits of the trust companies OF
New York city were simply enormous
With their hundreds of millions of re.
sources and the opportunities to carr
many an honest dollar, together with
the appreciation in their assets. they
1
centages of profit
| Washington has some very successful
trust companies. but neither in the
volume Of deposits nor in the oppor-
comparison with the great New York
| institutions.
Our largest bank has nearly 10000.
900 deposits; the National City Bank
Company $4ao.912.o0O.
Some of our trust companies show
20 to Il per cent annual earning az
against 80 to so or even a larger per
Successfully Started.
Washington's two new banks have
made a good start and are in a fail
way to win their share of patronage.
The first days deposit at the Dupont
National ank was $4,000. and every
| day new customers are registering at
the institution.
| The Merchants Bank presents a live
ly appearance with each day. The nu-
merous friends Of President Drury
have made him understand that they
| are with him in his return to the bank
ing business and deposits have steadily
| increased.
Want Their Exchange Fees.
|
from collections is more of an induce
ment to Washington bankers than max
ing this city a par point. with checks
good anywhere in the United States at
face value.
| No response has been made to the COL
lection system of the New York clear
ing house. in reply to its offer to make
Wash ins ton a par point-a recognition
| to be desired by depositors of local
J banks.
| But to do this our banks would have
| to give up a substantial part Of their
| collections and this they are not wiling
| to do.
This is also the reason why more
member banks do not join the federal
reserve collection plan and why many
state banks do not join the federal re-
| serve system. They figure they would
lose money through loss of exchange
on checks collected: that they would
have to carry, larger reserves than
] Furthermore from the fact that SO few
| banks outside of the national institutions
| have Joined they fear their collections
might be materially lessened.
A financial authority, commenting on