Evening star., 1917-04-12
RESERVE BANKS HAVE
LARGE ISSUE RIGHTS
Gov. Harding Places Amount That
Could Be Put Out at Once at
Il $1,0oO,O0o,ooo.
Trust Companies Move to Pool Gold
In Federal System-Capital Trac-
tion's New Low, 1874.
BY I. A. FLEMING.


w P. C. Harding, governor of the
federal reserve board, is authority for
the statement that the reserve banks
could issue 81 200, 100000 in notes, and
could do more If the proposed amend
ments, which were not acted upon by
the last Congress, would be put upon
the statute books.
The total federal reserve notes in
circulation. in vaults, subtreasuries and
in the hands of reserve agents and
banks, is now ss43.es3,o00, with un-
filled orders for printing, s63S,500,o00.
grand total of s1,5S2, ,4SS.000. These
notes may be issued on the security of
United States bonds having the circu-
1ating privilege.
The stock of gold in the United States
is about $1,000, ,000,0 900, and Gov. Har
ding believes it would be wise TO con-
centrate this gold in the federal re-
serve bank vaults.
In line with his reasoning was a reso-
luton passed by the executive commit
tee of the trust company section of the
American Bankers Association, called
IN special session. in which a resolution
was adopted recommending that the
trust companies of the United States
secure amendments to state laws
wherever necessary to permit trust
companies to carry their gold reserve
with the federal reserve banks, and
that, as soon as this action can be le-
gally taken, the reserves of gold be de-
posted with the federal reserve banks
thus carrying out Gov. Harding's idea
OF mobilization of gold and indicating
q long step in the direction of bringing
into unison federal reserve banks and
trust companies.
Sowing the Seed.
Some local bankers believe that the
government should undertake a cam
paign Of education. of patriotism and
national pride, before the marketing
Of the great block of bonds.
They seem to realize that the buying
movement must be spontaneous to car
~ IT through with rush to complete
success; that the sale must be pushed
through and that every one must con-
tribute in some degree to prevent lag |
gfng and to bring out boarded money |
in the raising of the national debt
from $40 to $50 per capita. on the
basis of 100,0o000o population.
Local bankers assert, too. that the war |
stamp taxes should be effective at once.
that every check. every receipted bill. |
every note and draft, legal document
and deed should be already doing its
bit" in the financing of the war.
International Exchange.
n. Parker Willis of the federal re-
serve board will deliver lecture this
evening on International Exchange"
before the banking and finance class of
the Washington Chapter of the American |
Institute of Banking.
Local Securities.
Lower prices were established today
on the Washington Stock Exchange. on
Capital Traction stock and on Chesa-
peake and Potomac Telephone 5s and
Potomac Electric first mortgage 5s.
Otherwise values were relatively
steady while in one case, Riggs Realty
5s. long term maturity, support was at
hand, the 1011s bid being a material
gain over the latest sale.
Most of the trading in stocks was in
Capital Traction, sixty shares chang
ing hands at so and then two twenty
ord, with more offered at this figure |
and 7s the official bid price at the close. |
Washington Gas Was Soft at 73.
ALI other stocks were slow and nom
inal at the official bid and asked prices |
Potomac Electric first SIS and Chesa-
peake and Potomac Telephone 5s sold |
at 103-each showing loss of a point |
as compared with recent transactions |
American Graphophone 6s were steady, !
with sales of odd lots at 100 and full |
bonds at 100A.
The prevailing low prices have ma
terially checked the pressure to SELL |
although UP to date they do not seem |
to have attracted much of an invest |
ment demand.
Will Make the Total S5,213, SIS 900. |
II the United States advances to the !
allies s3.000.000.000. as proposed, it will |
bring the grand total of allied loans |
placed in this country, secured and 9th !
erwise s5.2I3.575. 900, or little over 25 |
per cent of the war finances raised by |
Great Britain.
Condition of the Treasury.
Condition of the United States Treas
ury at close yesterday showed:
Net balance in general fund, $685.
1Ss.
Total receipts, S2515,510.
Total payments, s4.367.457.
The deficit this fiscal year is s176,-
316,996 against a deficit Of S56,0S45l5 |
last year. exclusive of Panama canaIi
and public debt transactions.
SERIOUS FOOD RIOTING