Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-06-10
FINANCE LOCAL AND OTHERWISE.
a market that has been so weak an


nervous.
Perhaps when tho public utility COM
mission has settled its rate investi-
CATION real improvement may follow
perhaps not.
Hearings commenced today on gas
rates. the Washington Gas Company
contending that the present rate 10 as
low as the corporation can do business
with fair margin of profit.
Bank stocks show considera BILE
strength and the prices current for
bonds are satisfactory. considering the
ruling rates on other Investments and
the diversion of SO much interest to
the liberty loan.
Liberty Loans and Deposits.
One hears considerable about the
ence to the suggested fact that much
OF the liberty loan cash will be Of this
description: An example 10 cited by
the Journal Of the American Bankers
Association as follows:
An individual in New York, having
real estate to the value of a million
dollars. desires to invest in the liberty
loan. and borrows $25o.o00 for that
purpose. the government in turn using
lies needed material. What has really
happened Is that $4,000 new money
has been created out Of nothing. I'm
der present conditions most Of the sub
scriptions to the liberty loan will con-
sist OF new money. A similar move
ment occurred in Europe. France and
Germany increased the circulation OF
paper money and thus provided the
public with the sums necessary to sub
scribe to the loan.
In England the result of war loans
mas been to decrease bank deposits
ine same thing 10 expected here, as the
1reet ouIk OF this money Is to be ex-
penasd here In supplies and pay rolls.
n t.
through the installment payments on
the bonds. for many Of the banks will
secure government funds on the secur-
ity OF the liberty loan bonds, through
ehe FEDERAL reserve regional banks.
The Next War Loan.
Bankers generally look for another
iarge war loan before the end of the
surent year. for our own and our
allies needs. Expert authority, if
oankers' views can be called such, pre-
aicts further notations of at least 81
v V,.. this year; plus additional is
necessary to convert tho present lib
erty bond issue. for bankers assert
positiVeiy that later loans will be at
higher rates OF interest.
Henry clews' Views.
Henry clews says: 1--WE may congra.-
ulate ourselves On the fact that our
financial resources are in good shape to
withstand the coming war strain.
A!tnough We have not yet fully
availed ourselves Of the advantages
Which the new laws offer. the country
nnos itself in an exceedingly strong
nnaEcial position. well equipped and
wen fortified In all essentials to meet
the tremendous load which financing
our allies and ourselves will impose
upon our fiscal machinery
only a. long as the war lasts, but per-
haps for some time after. because the
nations OF Europe will be heavy Dor
rowers and the United States the rich
est lender Tor long period. As an IL
lustration Of the efficiency OF the re-
serve system, the Treasury has just is
sued another offering of 5000. 000. 900 in
treasury certificates. which makes the
total Of these notes issued under the
regent war revenue bill about 5000, 00O,-
600, all of which has been placed
through the federal reserve banks
without producing ripple in the money
market In this connection our gold
supply will also be a subject Of pri-
mary interest The present stock of
gold in the United States IL estimated
at the huge sum of nearly $4,000. 0o0,-
600. or approximately one-third OF the
worlds stock.
This is far beyond our normal re-
duirements: yet the enormous oblisa-
tions which this government 10 about
to assume change the entire situation
and necessitate q conservation Of our
gold supply. which was providentially
poured In upon Us At a. time when We
were not in need"