Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-06-28
PAYING IN AND USING
LIBERTY LOAN MONEY
BY I. A, FLEMING.

(, q iGea of avoiding the accrulng IN
terest and others with intent TO Or,
;,t, the r,se OF the money until such
tive as the government demands re-
turn OF the funds
Naturally the heavy payments made
Sc trust companies and others VIII ois-
turh the mone~ market: coming also
on top Of the n,iGyear interest ana dlvi-
dand per iods. almost the heaviest OF the
yea-.
~ IN the transfer OF funds today most
g" the banks simply retain the casn
snd give the rovcrrnlent the credlts
:"ai,ah,c At any moment that the gov
comment desires. and the general opin-
ia, is that it will not be very long be
foe the entire proceeds from the I'D
ertv loan will have been withdrawn
The first payment OF per cent. June
Is. subscriptions: todays pay
ments were on allotments. banks tax
ing credits for surplus payments made
June Is.
Another large batch of securities left
Washington last night for Richmond
as collateral for government deposits
with the banks.
Important Ruling.
very important ruling has been
b. made by the Treasury Department af-
fecting the collateral to be deposited In
security of liberty loan funds left with
the banks:
In view of the fact that large per-
eentage of liberty loan bonds were
taken by small investors and that
heavy cuts were taken in the allot-
ments to large subscribers. it appears
tina. an emergency exists with respect
to the % per cent requirements IN
United States securities security for
liberty loan deposits In order to meet
this emergency 10 per cent of securities
acceptable for collateral must be in
United States securities. instead of the
rs per cent heretofore ordered"
Bank Deposits VS.. the Tax.
Inquiries have been made by many
bank depositors suggesting withdrawal
of funds from banks and trust com
panies over the month of July. with
intent to evade the intangible tax law.
:: Some suggestions have been made
snent the purchase of drafts on other
points. to he held over the reporting
period ard then redeposited.
The intangible tax law Is as much
4 a law any other measure on the
statue books: it can he evaded only
by lawbreakers. and the evasion Is un-
/ der the threat of 20 per cent penalty.
bankers say.
: Withdrawing money from banks and
=; trust companies would not pave the
way for escaping the tax; the owner
still has the credit. and to hold it in
some other city will not make the tax
any smaller nor furnish way to
dodge the assessment.
! Sums under $500 are not subject to
taxation; several under $500 deposits.
II in different banks. would be re-
leased from the ohlighation only in
! the event Of the total reaching the
: limitation.
a Information as to dodgers would be
easily available. almost as easy as the
uncovering of registration dodgers.
for the bank examiners. having ac-
:. cess to every fiscal institution in the
4; city. to every book of record. could
readily pick out the delinguents and
ascertain the cause or reason Of with
drawals in suspicious amounts and
ceases. and the penalty is severe enough
ito make dent in any moderate sum
'of cash.
with Accrued Interest"
.~~All bonds carry accrued interest when
I purchased between interest payment
! periods. Investors understand this
fully. but the great army of non-in-
4 as their FIRST investment have yet to
absorb this item.
Many of them. paying in on all OF
their subscriptions, some paying In on
have expressed surprise that they will
- called upon to pay interest also. and
yusem slow in understanding that the
bonds carry interest from June Is. the
i coupon payable December Is. including
TAN of this interest.
Because of tho fact that interest on
bonds cannot conveniently be paid
, ottener than twice a year. it Is neces-
= hands the accrued interest must be paid
to the seller. and the buyer buys the
credit as represented in the coupon.
Small subscriptions on the INSTALL
consideration. as the agreement in
force through the District Bankers As
'--eoc!ation provided that banks should
: carry the bonds at the same rate of
customers while payments were being
made.
=. Baltimore and Ohio Earnings.
For the month Of May the Baltimore
and Ohio reports operating revenue of
3l1.473.255. as compared with $l0.201, ia
for the same month Of 1916. an increase
of $1.271.524.
Net operating revenue for the month.
ta.17o.8o0. an increase of 3315,389 as
compared with the net for the same
s month Of 1916. the heavy increases in
maintenance and transportation ex-
penses causing the shrinkage in net
gain.
For five months of the fiscal year
j ended with May the gross operating
= revenue was $4s.ss7.573. a gain Of 81,
e14.616 over the gross for the same
months OF the previous fiscal year;
while the net operating revenue was
= tll.bs7.6o3. an increase of but S635. 0s9
Local Securities
The features Of today's session of the
j :" dshiuStCn StOCk Exchange were tne
( display Of strength in Capital Traction
] stock. which sold at so. the strength
of the bonds of the same company
which advanced to 103. and the weak.
ness in American Graphophone IS
which sold OF to ssE from an opening
Z Mt par.
Railway a. sold at 7sN. and Washing
ton Gas stock was traded in sparingly
At 7211 to TN.
= Dividends Declared.
The directors of the Columbia Ma
/, quarterly dividend OF per cent paya-
Bile July !, books closing today
Checks for the dividend for the quar-
holders in the Continental Trust Co
June 80. books closing today.
Condition Of the Treasury.
Condition of the United States Treas
z ury at close yesterday showed:
Net balance in general fund S3O4O56
sl3: total receipts. $685. 77; total pay
ments. $2.955.s56.
The surplus this fiscal year il Ses.-
b+4.306, against q deficit of Sl2S97 45I
last year. exclusive Of Panama canal
and public debt transactions.
So
." GRAIN AND PROVISIONS
CHICAGO. June 2S.-Prospects of i'm
mediate embargoes to reduce wheat
exports to European neutrals gave a
= downward impulse today to whea,
values. The market was bearishly af.
V fected also by optimistic crop adyices