Evening star., 1917-04-08
BY I. A. FLEMING.

Practically every banker in Washington
is boasting today of the individual de-
posits in his bank, claiming that the
figures are the largest on record.
And this condition exists when and Z
and even per cent investments go beg
ging on the Washington Stock Exchange.
Capital Traction, Railway preferred and
Washington Gas all pay better than
per cent on present market quotations, at
time, too. when money on time is
quoted at less than per cent in New
York and per cent on call in Washing
ton.
Railway common on the basis of IS, the
price at which the last sale was made
on the local exchange, is nearly per
cent payer, and Lanston Monotype shares
at 70 return over s per cent.
1t is within the possibilities that the
April circular prepared by President
Hamilton of the Capital Traction Com
pany, in which he called attention to
the increasing cost Of materials, wages,
etc, increasing the cost of operating. and
suggesting the possibility of having to
move for larger fares. has caused some
fear that it may be necessary to clip a
fraction off from the quarterly distrihu-
ton, unless added fares are obtainable.
may have caused some uneasinesS among
Capital Traction shareholders and stock
holders in the Washington Railway and
Electric Company. although so far there
has been nothing but the one hint.
The street railroads have long held out
the bait of universal transfers in an eff
fort to snare straight fiVe-cent fares, but
as yet without effect.
The plain effort made some years ago
to pave the way for consolidation of
the street railways was nipped. even
before reaching the bud stage. by the
La Toilette amendment. or there might
be some opportunity, some vehicle, for
reducing the heavy operating costs at
this time.
Whether an increase of fares can be
obtained in the District is not matter
for argument here, but the fact re-
mains that should it be necessary to
clip fraction off from quarterly divi-
dends of any of the stocks named the
cut has been fully discounted by the
present market and present prices
would seem to be sufficiently low if
investors have any confidence in Wash
ington or Washington Investments
A or per cent investment is still
considered desirable. although with the
unsettled conditions due to the entrance
of the United States into the great
war. investors may feel safer leaving
their cash in bank drawing .. and oc-
caslonaliy per cent interest
Financing the War.
Washington bankers believe that
there will be no trouble in raising all
the money needed to finance the war.
Some few are of the opinion that Con-
aress will not be as generous as the
demands of the Secretary of the Treas
ury would indicate. but others claim
that anything approaching piecemeal
financing might lead to trouble. Short
term financing is bitterly opposed
What bankers and business men gem
orally would like TO see would be the
whole country bearing the burdens.
rather than the wholesale taxation of
business industry.
J. S. Bach & Co. of New York assert
that the effect of Increasing this per
cent profits tax, which applies to all
corporations, to make it furnish the
funds needed for a great war would
cause capital for enterprise to be shut
off draStically."
Bankers unquestionably favor a big
bond issue, subscriptions to which will
be largely made by the public through
the 7.000-odd federal reserve banks and