Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-04-09
BY I. A. FLEMING.

Bankers generally are complaining
over the increased cost of bank eN-
aminations under the present method.
claiming that the cost is from two to
three times what it was under the old
system.
For the examination of banks in re-
serve cities and in certain designated
states and territories compensation of
examiners was fixed by the Secretary
of the Treasury on the recommendation
of the controller of the currency.
In the central reserve cities banks
were assessed a certain percentage
based on their average deposits as
shown by five previous reports of con-
dition. The cost was not considered
burdensome by banks, but the salaries
made by the central reserve city eX-
aminers was far in excess of those of
other examiners.
member banks shall be examined twice
a year and that the Expenses OF the
examination shall be assessed by the
controller of the currency upon the
or resources held by the banks upon the
dates of examination" This provision
gives power to the controller of the
currency as against provision for
vided by the national banking act.
1t is said that the controller or the
currency has fixed upon schedule OF
81 a thousand for the first $4,000 of
banks assets and 3 cents additional
for each $1,000 of assets, which, while
apparently d modest appearing charge
would really make a large charge
against even a bank of $l0.0o0,ooO
assets and a very heavy charge against
the S10O,0o0.00O to $500.00o.0O0 instltu-
tions.
Two examinations are provided a
year, with liability for special examIna-
lions on the order of the federal reserve
board while some of the larger cities
also have clearing house examiners of
their own. engaged at large salaries.
showing that thu chances for unsatis-
factory conditions IN me natlonai
great, while the examinations all add
to the cost of banking and abstract
from the profits. so
Examinations may be ordered win
the approval of the federal reserve
agent of any member bank, with view
of informing the regional bank OF the
condition of the member examined and
of the lines of credit being extended.
Local Securities.
The trend of trading on the local
stock exchange during the past week
was largely toward bonds. Investors are
continually seeking high grade issues like
Washington Gas IS. Capital Traction 5s
and Potomac Electric first 5s, so that
the supply has been graduaiiy reoueed
and there is no pressure to sell.
Under these conditions holders have
moved up their asking prices and buy
ers have met the increase only to find
values again advanced on them. When
5 per cent bonds sell around 1863 to
1O7 they would seem to be reasonably
high, and yet no great amount of the
two first named issues could be OBJ
tanned at the top figure.
Slight advances have also been made
in the usual active trading issues,
washington Railway As and Potomac
Consolidated 5s. During the past week
bonds to the amount of $4,000 face
value changed hands.
In the stock list the feature has been
the strengthening undertone to Wash
ington Gas. Quite few shares were
sold, and the nominal closing price was
around rs. The earnings for the year
to date presage very heavy increase
over the total of last year. and the
$3.50 share dividend fully earned.
capital Traction and Washington
Railway have been nominal, and the
investment interests of the District
await the verdict of the appraisers and
the action that may follow in the
of the public utilities
commission. Until after these matters
have been finally settled there is little
Likelihood of activity in the traction
shares
The typesetters have been slow. es-
necially Lanston. Since Tuesday there
has been nothing but the II bid and the
rs asking price, without trade on the
latter stock.
bank shares have attracted consider
able attention and have figured in the
sales with indications that these shares
will move more freely in the near fu-
ture.
3S4 shares.
Wall Street Comment.
New York stock market has been
backing and filling. under the manipu-
lation of traders who take profits on
strong spots and get in when weakness
is intense. Always there Is the threat
of the submarine as a disturbing ele-
ment, and the speculator is always
looking for the bluest news and ready
to act on it, even If he is obliged to buy
back his short sales at loss.
Industrial corporations are doing
wonderful business, if one can believe
one half of the tales that are told, and
it would be but modest concession
to the fairy tales of the street If the
other half were admittedly untrue.
John Moody. a statistician of national
repute and an "insider" on Wall street.
deplores the frenzy and the greed that
Ia