Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-03-07
LARGE W|THDRAWALS0F
SHIPPING BOARD CASH
BY I. A. FLEMING.

The next call for statement from
local banks by the controller of the
currency, a matter of but a few days
at the longest. will unquestionably de-
veIop the fact that large quantities of
money on deposit in various national
banks to the credit of the government
have been withdrawn by the Treasury
Departments.
Some estimates as high as 0.000.0 600
have been made; this may be made up
in part by Red Cross deposits. but the
loss of shipping board funds Will be
most seriously felt by the banks The
next three months or Il little longer.
say from March Is, when S4oo,ooo tax
money is returned to the Treasury De-
partment until June 5. when the pay
-nert of income tax cash is due, there
will he continued heavy Withdrawals OF
funds.
II seems within the probabilities that
$4,000, 900 or S30.000,o0o will be asked
for as the Washington contribution to
the third liberty loan. and while II
viii not all be paid within sixty or
ninety days. il will cut figure in de
posts. while in April and May S6,ooo,o 600
tax money will have to be paid. fol-
lowed by the income and the intangi-
BILE property tax.
To offset this will he the redeposit
with the banks of 100000 tax money
and redeposit of liberty loan funds
until such time as the government
needs the money, which viii he before
the end of the fiscal year. and probably
soon after initial payments are made,
to the extent of the payment.
Much of the income tax money has
been anticipated and some of the pro-
rceds of the next liberty loan through
issues of Treasury certificates.
Money is rather close, and per cent
Is the going rate. with the banks MAX
ing efforts 10 keep we'll supplied with
tdiSCountahIe paper.
With conditions more or less similar
prevailing elsewhere, it is not a matter
# surprise that the capital issues com
nittee seeks TO discourage new enter
prises. save where they contribute to
the needs of wars demands.
The clearing house committee of the
New York Clearing House Association
has offered an amendment TO the con-
S;itutiou Of the organization. providing
that no member or ron-member bank
shall pay more than . per cent under
The ruling rate of rediScount of the fed
on ninety days funds. for domestic
balances or certificates of deposit
drawn on demand or thirty days notice.
The amendment carriedS with it
renalty of $4,000 fine for the first Of
tense and expulsion from the clearing
house and the privilege Of clearing
through a member bank for a nom
member bank.
The federal reserve board is said to
have recommended the adoption of the
amendment for the purpose of prevent
ing the increase of interest rates on
BALANCES which has recently threatened
to demoralize the banking situation in
New York city.
Another amendment which the clear
ing house will be called upon to vote
on Monday next will he one to compel
non-member banks which clear through
member banks to be bound by all the
provisions OF the constitution and all
the rules and regulations which have
been established by the committee for
non-member banks
one of the points of interest is the
fact that an affirmative vote on the first
amendment, carries a $4,000 penalty
which VIII at once relieve the banks
from the fear that some will and some
will not