Evening star., 1918-06-05
; BANKS MUST PREVENT
|. MONEY FURRY June IS
BY I. A. FLEMING.

Federal reserve banks are impressing
upon their member institutions the ne
cessity of persuading their clients and
<depositors, in so far as possible, to meet
their income tax payments on or before
the 18th instant with Treasury certifi-
Gates maturing on the 25th instant; that
they shall advance money to their clients
on such certificates, if requested. and
shall use the certificates themselves
wherever possible in payment of income
taxes.
Banks are warned that they should
prepare at once to qualify as repositories
of tax funds; that they should send in
the necessary collateral to secure such
deposits that there may be no necessity
for disturbing credits through the heavy
withdrawal of funds for any locality. Q
1t is considered that banks and trust
companies are seriously obligated to
sustain. and under no circumstances
to permit, the defeat of the purpose
, for which Treasury certificates, issued
in anticipation of taxes. were put out.
+ There are outstanding $500. .00O, 900
,of these certificates. maturing June
lJ2o, and if presented for payment and
not turned in in payment of taxes it
would cause "a serious shortage of
funds and heavy cash Withdrawals
from repositories"
Banks falling to do their part in
the work of divertipg these certif-
Gates TO. the purposes for which they
were issued, in SO far as possible. will
!. be debarred from acting as depos-
y itories.
Former Treasury Heads in City.
Yesterday there were three former
} secretaries of the Treasury in the
capital-Lyman ]. Gage Leslie NJ
Shaw and Franklin MaeVeagh.
Mr. Gage, who was called to the
high Office by President Mckinley
from the presidency of the First Ma
: tional Bank of Chicago, spent two
days here as the guest of NJ. E. Allies,
p. who was an assistant secretary of the
Treasury under him, renewing ac-
quaintances and looking over the Ma
tional Capital. Although over the four
/ score. Mr.. Gage is in splendid health
and walking advertisement for Cal
ifornia ozone.
The only other living ex-Secretary
of the Treasury. George b. Cortelyou.
IFS at the head of the Consolidated Gas
Company of New York city.
Banking Statistics.
Applications were filed with the
controller of the, currency in the first
123 national bank charters with
proposed capital of $7,735.000; sixty
charters were granted. capital sS.430,-
coo; ninety-two national banks in
creased their capital by 900;
three banks reduced capital by $175.-
600 and twenty-six institutions went
into voluntary liquidation, capital
$5,135. 900.
During the period named the con-
troller of currency refused ten appl1-
cations for national bank charters.
At the close of business May 81. there
were 1916 national banks in exis-
tence.
Fewer charters were applied for and
fewer granted than in 1917 in the
same areriod; more banks reduced
theif capital in 1917; more increased
and about the same number liqui-
dated in 1917.
War Finance Corporation.
Contrary to general opinion, the War
Finance Corporation Is not vitality in
terested in the affairs of public util-
tiles corpora tions or of private inter-
ests. 1t is on record as believing that
in these strenuous times holders OF
collateral of corporations in any line
of business should be generous in ex-
tensions and renewals and not force
to the wall, when payment is impos-
sible. but will offer no aid unless in
specific cases where banks are not
dealing justly by clients.
The loan approved on Monday to the
United Railways of st. Louis does not
establish q precedent for other util-
tiles. in that the loan actually extend
ed from June I, 1918, maturity, to De-
cember !, 1918, first mortgage on
the Union depot of st. Louis
Fares in ST. Louis have been increased