Evening star., 1918-08-29
URGE BANKERS TOBUY
TREASURY CERTIFICATES
By I. A. FLEMING.

The Federal Reserve Bank or Rich.
mond has circularf1ed all local bankers,
urging that they come forward with
subscriptions to the issue Of Treasury
certificates dated August 20. 1918. and
payable July IS. acceptable at face value
for income taxes. The statement is
made that Comparatively few subscrip-
tions have been received from banks in
this district
Tho circular further urges that these
certificates be distributed as widely as
possible. in view Of the very heavy
Withdrawals Of funds that would be
otherwise necessitated in payment Of
ury Department has especially requested
the cooperation OF all banks In the sale
and distribution Of the certilcates."
In the original announcement from
the Richmond bank it was stated
that subscriptions to the certificates
erroneous. the books being open un-
til further announcement.
Pennsylvania reports a gain OF $3.-
411.154 in the net operating revenue
time st. Paul reports q decrease Of
$439.7S0: Southern railway an in
crease of $2,112.s99. New Haven an
increase of $l.s72.s7s and Delaware.
AackaWanna ana western q gain OF
$s7o.72o. These comparisons are for
the same month in 1911.
In comparison with the six months
ending July 81. 1917. the 1918 net
operating income figures Of the roads
show. show as ,f folloWs; lilo pennsy1vania. de
$12,360,714; Southern railway. in
crease. $1.5s6.323: New Haven. de-
crease, s6.213.174. while Delaware.
Laekawanna and Western decreased
S2.o02o1s.
The Lehigh Valley Railroad Com
pany has put out $15.000.000 collat-
eral trust IS. ten-year bonds, to be
sold to yield 6.23 per cent The issue
is to be secured by $4,000 of col
100000 and muitiples thereof at the
option OF the company after August
81. 1923, and thereafter In March and
September of each year.
Total subscriptions to the issue in
one day were $50,ooo.0o0.
Money and Liberty Bonds.
It is evident that the banks of tho
country will be very close with their
credit accommodations until after the
fourth liberty loan has been market
ed; and thereafter If they follow the
continued urging of the officials Of
the federal reserve board
New York banks will lose $l50.000.-
900 government deposits this week
and the Offering of $50o.ooo,000
Treasury certificates, will further re-,
duce the chances of easy money.
Bankers are searching applications
for loans very carefully, and whef-
ever possible insist on rediscountaole
paper. a very moderate demand being in
evidence for short term mAturities.
Secretary McAdoo is out with . re-
quest urging all railroad employees to
go the limit in their purchases Of
fourth liberty loan bonds, urging that
there Is no better way for them to re-
invest their wage increases, many Of
them retroactive.
When the controller Of the currency
made his report on the liberty bond
holdings of the various banks, June
y. he called attention to the fact that
they were in good condition for the
Fourth liberty loan campaign. There
Is q feeling in financial circles that
the banks will be called upon to
finance the loan in larger degree than
the third loan, a task made easy by
The rediscount privileges.
Local Securities Slow.
There was very little trading on the
local stock exchange today. Only three
Issues showed on the sales sheet, Po-
ton1ac Consolidated SIS At 50, the gem
eral mortgage SIS of the same corpor-
4 -. 40