Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-08-12
FINANCIAL-LOCAL AND OTHERWISE.

financing the next liberty bond issue is a
three-cornered one, and suggest:
Clearing the banks Of liberty bonds.
Keeping them sold. e., preventing
lapses in deferred payments.
Finding the most practical way to
encourage thrift. to capitalize econo-
mics for the purchase of government
bonds.
President Goebel of the American
Bankers Association in a recent speech
said:
No bank will discharge it's duty or
render the full measure of support to
make every effort to sell to the people
the Qiberty) bonds it has on hand
There should be no cessation of eff
fort to sell liberty loan bonds until all
have been placed with the people.
Clearing the banks of bonds is the
best preparation for the next war loan.
Thrift must be encouraged Only
from the savings and the additional
savings Of the people can funds be Sc
cured for the proper financing of the
war.
The banks of the United States made
the first issue of liberty loan bonds Il
mighty success. The next issue must
be an equally great success"
Reserve Bank Ruling.
district has notified bankers that, not
withstanding arguments made on ac-
count of liberty loan funds deposited
with the member banks, securities to
the full amount Of designation must be
held against the depository balance,
even though the original credit has
been reduced. unless further deposits
are authorized.
In many instances release of col
lateral is desired by depository banks.
when. without reduction of designation.
we are unable to comply with their re-
quest"
This ruling might have made it diff
cult to float further issue of liberty loan
bonds. but this has been made less diff
cult by ruling of the Secretary of the
Treasury by which a reduction in
designation can be ACCOMPLISHED in
about three days and securities held as
pository designation, which has re-
moved cause of complaint
Largest Subscription.
The First National Bank of New York
subscribed to $50. 600. 900 of the latest
Treasury certificate issue of $500, 600. 900.
Ihls bank outranked all others in selling
liberty loan bonds. its purchases and
sales to others totaling $4,000. 900.
Excess Profits Deduction.
Commenting on the June earnings of
the steel Corporation, the Iron Age saws.
The shipments were about 1850 900 gross
$40 per ton. and the amount set aside for
excess profits tax was about SIS per gross
ton In 1916 the production of finished
rolled steel in the United States was about
3o,3oO.00o gross tons, and an OUTPUT of
say. $1,000. 900 tons may be expected this
year. At SIS per ton. the revenue from
the steel industry alone using the Steel
corporations experience as a rough basis
Tor comparison, would be about SAGE 900
600, quite tidy sum for the government
TO collect from an industry which is ex
pected to aid 1t in the furnishing of ma
teriais as well as In the paying of taxes"
Wants Sc, 900, 900, 900 Bond Issue.
The Secretary of the Treasury an
peared before leaders in Congress the
other day and discussed the adyisa bill
ity or passing another bond measure
The New York Times is authority for
the statement that the Secretary asked
for an authorization for a six-biIlion-
dollar issue and also for the statement
that 1t might be necessary to make the
rate of interest 4 or Az per cent.
During his liberty loan tour the
statement was made by Secretary Nc
Adoo that 1t would probably be neces-
sary to issue 5000. 900. 900 bonds the
first year ofethe war.
Investment bankers are doing con-
siderable worrying over the possibility
of an increase in the interest rate Of
the general bond market even less ia
yorable than it is today. They profess
to believe that the next liberty loan
Will be put out or 81 per cent basis.
Local Securities.
The market for local securities still
remains but little mora than normal ~