Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-02-13
BY I. A. FLEMING.

L.
The return of P. A. Drury to the
banking business, from which ne re-
tired seven or eight years ago, has
been cordially welcomed by the bank
ers of the city.
A man of wide business experience
and with a long and honorable record
in business, he brings TO the new Mer-
chants Bank strong financial backing
and a thorough knowledge OF the prac-
tice Of banking that will mean much
to those who are associated with him
in the new enterprise.
Mr. Drury was formerly president
of the National City Bank until 1908.
when it merged with the Commercial
National Bank.
The Merchants National Bank has
assumed three-year lease OF the
banking q quarters formerly s11G s eGGrn
Bank, on F street. and assumed lianll-
ity for the deposits or that institution.
On the last statement to the con
trolIer OF the currency, December 81.
1917: the Washington and Southern
ean nam had on SePSGnsit, S s1s4,2o noncs
of Mr.. Drury's taking over s.e 1nsti-
tuition quite a number OF compliment
deposits
and personal and business friends OF
the president have also opened &C
counts and extended CONGRATULATIONS.
The outlook for the future OF the
Merchants Bank is encouraging ana
the financial position of banking in
WASHINGTON has been strengthened by
it's organization.
On Usury Matters.
co,e Alabama bankers have pro-
nosed a convention Of country bankers
to be held in Washington to protest
| a 1ainst what they term indiscrininate
charges of usury.
While the iron is hot much talk Is
being INDUCED in regarding changes in
laws that will punish charging of IL
legal or usurious rates.
An Alabama banker. in taking excep-
| ton to some of the recent charges
made by the controller. declares en-
phatically that no matter how low the
rate of the federal reserve bank in ms
district the paper shaved at higher
rates than generally termed legal
| before the scrutiny of the reserve
bank.
est has been placed at per cent as a
| state declared that they cannot do
| business and survive at the rate men
toned, and the supreme court, oecom-
ing a party to circumvent the usury
| law, decided that a note may be bought
| by a banker at any price he may op-
tain it for, but that the note, in order
| to be available for this kind Of dis
counting. must not bear interest
| Perhaps it might be much better to
take the view that any note requiring
| such serious shaving as indicated by
some Of the complaints made by the
controller would be much better out
side of the strong box Of bank.
There are some banks discounting
| notes in Washington-notes where the
| rate of interest is left blank, but an
und erstanding reached of and per
Credit is a very tender matter: 1t is
of many grades and commands respect
very highest, while the various grades
from good to fair at the best must pay
for accommodations.
REPRESENTATIVE Howard Of Georgia has
| nresented a resolution in tho House calling
for AM investigation Of the rates Of in
terest charged by southern and western
banks particularly.
Just what action. II any. Will be taken
| in the matter remains to be seen, as 1t is
also a matter Of record that the controller
Of the currency has been in consultation
with the rules committee OF the House.
and It is also stated that the banking
fayors imposing penalties for usury.
Local Securities.
The last two weeks have been attended
with considerable activity on the local
stock exchange. The chief revival Of in
terest has been in the bond market, but
the stocks have also shown some improve
ment.
Here as elsewhere the employment Of
cash on hand is the big problem up for
solution to tho banks and trust companies.
| and as bankers and investors all over
the country are competing 1t Is but natural
that bonds should be strong.
Washington Gas 5s at 106 and Capital
Truction SIS at 10TH represent high-grade
Investments a little too high for bankers,
/ but yielding fair returns to investors.
! Washington has purchased SO FAR this
year $109,700 American Graphophone s
per cent bonds at one price, 80. which Is
| a decidedly attractive investment, largely
taken on the reported large earnings Of
the company, which should sooner or
later be given to the public.
Potomac Consolidated Electric 6s are
always moving freely between 99G and
99H, and are being taken by investors.
| while Railway Is also have q persistent
clientele between S0H and SOY.
Investors are more than likely here
after to seek bonds that are income
tax free. The fact that Congress is
more than likely to make larger use Of
the income tax as a revenue producer
probably will lead to this action. Many
| bonds of corporations are free In that