Evening star., 1917-11-10
PLAN PROPOSED T0USE
SURPLUS TILL CASH
BY I. A. FLEMING.

By I. A. FLEMING.
Under recent amendments to the fed
sral reserve law. member banks are
required to maintain their entire re-
serves with the regional bank of which
they are members. On the required
reserve they receive no interest what
ever.
In order to continue the business re-
lations with New York, Philadelphia.
Boston. Chicago and other cities. bal
ances must be maintained with some
bank in each of the cities or with
more than one institution. on which the
regular interest return will be 2 per
cent
There is no hard and fast rule in the
matter of cash on hand. till cash. as
1t is frequently referred to. Because of
the possibility of need arising, many
banks actually carry much more cash
in their tills than ordinary require
ments necessitate. the surplus being
thus non-productive from day to day
and year to year.
These circumstances have led to the
suggestion by John Poole that the
banks of the District unite in segre-
eating their. surplus cash in one of the
larger banks of the city. where per
cent interest would be allowed, thus
making the surplus provide some re-
turn.
1t would be necessary in this event to
maintain minimum balance with the
selected institution.
In the event OF immediate need of the
funds they would be available TO what
ever extent required.
This is the plan without details.
Chairman Rudolph of the Washington
Clearing House Association has ap-
pointed John Poole. George w. White
and Robert n. Harper committee to
make Investigation of the project and
a meeting of tie committee will be held
in the near future to discuss the sub
ject.
Matters are yet in embryo. but the
suggestion has possibilities that may
lead to action.
General Motors Dividend.
The directors Of the General Motor
Company saved the situation on Wall
street. as far as motor shares were
concerned. this morning. when they
declared the regular quarterly divi-
dend on their stock plus an extra dis
tribution of 1 per cent.
Source Of Liquidation.
It is said that the liquidation of the
securities OF Eugene Foss, former
Governor of Massachusetts,, have play
ed an important part in market action
during the present week.
His affairs are said to have been in
the hands of committee. and the
liquidation is reported to have includ-
ed 10000 shares of Steel common and
very large blocks of Brooklyn Rapid
Transit. Consolidated Gas and Ameri-
can Can shares
Air Brake Earnings.
The earnings of the American Air
Brake Company for the year 1917 are
estimated at s;3 share as compared
with sSe per share last year.
New Haven's Earnings.
The September gross earnings of the
Nsw Haven system are reported as
$7ss,s3S greater than for September Of
1Sl6. and the net after taxes shows an
increase in the same comparison of
ess.s55. The surplus after charges for
the month was s9,515 greater. For nine
months Of the calendar year the gross
earnings increased s4.227 ,519.
The excellent showing was effective
In advancing the shares of the corpora
tion on Wall street today from 22 s.,
yesterdays closing. to 24k.
Personal Mention.
Ropert II. HEgner, assistant cashier
Of the National Metropolitan Bank. In
charge of the Metro-Liberty Club and
the savings department. is in receipt
Of advance congratulations in view of
his approaching marriage, which will
be celebrated next Wednesday. A well
earned two-week vacation has been
granted for proper celebration.
On the Stock Exchange.
On today's session of the local stock
exchange thirty-two shares of Rail-
way preferred changed hands al
Two five-share lots of Washington
Loan and Trust Company's stock sold,
one at 238 and one at 237.
Bonds Were Nominal
Total transactions for tte six COS
sions Of the week ended today $12,500
face value of bonds ana .oo snar,s VI
stock.