Evening star., 1917-05-13

BY I. A. FLEMING.

BY I. A. FLEMING.
These are unhappy days for investors.
or investments in the New York or
other stock list. 1t is a time when
the holder Of securities can only grin
and bear it. On paper the investment
is very much less valuable than II
was a short time ago, but SO far as
local securities are concerned, there
have been no cutting Of dividends, and
the hope Is expressed by corporation
managers that this may be avoided.
In the great majority of cases there
is no good reason for the serious de-
clines; it is mental and not due to
actualities, with no more serious IN
f1uence, aside from local securities.
than the war tax measure. which even
its sponsors admit to be cruae ano
lacking in we'll appointed adjustment
The particular part Of the tax meas
ure that has caused the worst declines
on Wall street has to do with the tax
on freight bills and passenger tickets.
necessitating an increase in clerical
force, annoyance in record keeping
and collection. And the railroads, bur-
dened with the high cost of labor.
shortened hours Of labor. increased cost
of equipment and material, cannot pass
the tax along after the manner of the
great majority of corporations and
individual concerns.
Prices for high..grade rails like Del
aware and Hudson. Union Pacific,
Reading. Chicago and NorthWessern hive
gains, but 1t remains to be seen
whether they are or not, for the senti-
mental weakness of today may become
subjects give further cause for worry.
The gloom subjects are the submarine
menace, the question Of the stability
OF the Russian government ana its
nf
allies, with the yield of wheat and
other CROPS for the harvests Of 1917.
On the other hand. business Is large
and growing: the do-business-on-a-n no
profit; employment is for all at better
wages than ever before in the history
of the country. and seven billion DOL
lars. an almost unthought-of OF sum, ls
ican marts within the next two years.
Back Of the business Of the country
is unlimited credit with the federal
reserve banks-until every dollar OF
bonds. has been rediscounted - un-
AS one broker aptly remarked. 1T Is
a time for caution. but not Iof unioauI ,.-;1I
recover one of these fine days.
Six Cents Agitation.
All over the country the street car
companies are making united ana
strenuous efforts to secure a scent
The time-honored scent fare prev
alent before the war of so Is still dom
inant in nearly all large cities. Whiie
washington honors the six-for-a.
Sf Sait Of universal transfers for a
straight scent fare. The pamphlet re,
port Of the Washington Railway and
Electric Company for the CALENDAR 1f
gives fun information of the. various
Units OF the system, but contains little
of news to the public. other than as
presented in the annual report.
Local Securities.
A little further leveling of bond prices
on issues that have admittedly been out
of line with other issues of like grade IN
other centers has been the chief feature OF
the week in local securities.
The only demand seems to De 1or ooo
ington is doing its full share In acquiring
government 3k per cents. practically
every bank accepting subscriptions and
going out of its way to aid IN notauon OF
the issue.
Stocks were soft, nothing more than
natural Brokers advise their customers
to sit tight-no time to sell.
Pushing the Loan.
Bankers are giving much Of their valu-
able time and more or less actual cash
to help along the success OF the liberty
bond issue"
Various schemes have been put in oper-
alton for carrying the bonds for Gus
toners on the partial payment plan ana
on various payments, so that even mod
est income will enable participation in the
loan.
Some bankers have expressed fear Of
the banks becoming overloaded with
A>A N14f0V
of the installment buyer to the bank for
the use Of the bond for security for re-
discount with the federal reserve bank,
during the period Of payments, as means
of increasing the circulating medium. The
suggestion carries with it the assurance
that the rate Of discount for ninety days
with ninety-day renewals should be the
same as the bonds. 3h per cent, making
the installment operation , Pay Tor itself; Sc -.
bank with which he does business he
should offer no objection to this PROPOSE
tion-indeed, the title to the bond re-
mains in the bank until the bond is
paid for.
The public also appreciates the con-
version feature of the bond issue-that
is, the right to exchange for bonds of a
ernrnent fnd it necessary to issue bonds
at a higher rate of interest during the
present war.
State Banks Object.
During the past week the executive
council Of the American Bankers' Asso-
citation discussed the question of some Of
the larger state banks and trust compa-
MES becoming members Of the federal re-
serve system, which was considered pro
and CON at considerable length.
Secretary McAdoo and members Of the
federal reserve board have urged the uni
ficatien Of the banking system under the
medium offered, as one Of the best means
OF strengthening the system and making
it more powerful for the good Of all nena-
berx.
While there was quite a number Of OH
cials Of state hanks and trust companies
rather inclined to yield to persuasion,
there was q larger number opposed, and
one strong objection advanced was to the
reserve board as constituted, with Secre-
tary MoAdoo and the controller Of the
currency on the board - ex-ofdcio MEM
bers No objection was offered personally
to either Of the officials named. but to the
placing Of the banks Of the country under
any political influence
S%fh RofA an n 80