Evening star., 1918-01-27
FINANCE AND OTHERWISE.
BY I. A. FLEMING.

Wall street waits for the verdict of
the directors of the United States Steel
Corporation at a meeting to be hold
Tuesday when the question of the dis
tribution on the common stock comes
up for consideration.
Brokers and traders are at variance
on the probable action to be taken at
that time. Some hold it would not be
good business policy to declare an ex-
ira dividend at this time. when the
corporation. according to report. has
completed practically all its outside
contracts at good prices.
The government is now the buyer and
in large amounts, but at fixed prices.
In all probability there will be a
stringency in the money market within
the next thirty to sixty days. proceed
ing and during the next liberty loan
campaign. Brokers point to this as an
other reason why no extra distribution
should be made.
An extra distribution, however. would
be taken as a sign that the astute
brains that direct the steel corpora
ton could discern no good reason Tor
showing precautionary signals. Such
action would probably be the signal
Liberty Loan Problem.
The problem OF financing the war is
one that is being considered daily by
bankers and others interested, upon
whom will fall the bulk Of the work
of placing the loan in whatever form
the Secretary of the Treasury may de-
eide to issue it.
Bankers and dealers are ready on the
moment to turn their forces to maxi
ing the loan q success, but they are
spending much time considering the
probable form of the flotation.
In order to make this and other fu-
ture government financing a success 1t
will be necessary for the government
to take some action looking to the
stabilizing Of investments. temporarily
at least.
Savings banks the country over have
large amounts of bonds on hand and
other securities. investments permitted,
of funds left to their care.
This Is no time to sell anything. II
the funds in savings banks are tapped
to float the next financing movement
the banks will have to realize on some
of their securities to pay off deposit
tors.
1t would look as If it was up to the
government to aid the banks In the
financing necessary that they may meet
the demands for funds from their de-
positors. something in the nature of q
temporary exchange of cash for Sc
curities.
The federal reserve law does not con-
slider even the highest grade of bonds
as available collateral back of notes
rendered for rediscount. even though
the laws of Massachusetts and other
states specifically permit the invest
ment of savings deposits in these bonds
preferential standing in the great VOL
| ume Of bonds outstanding in the Unit
ed States.
In times of stress. when the emer-
Rency currency law was in effect, stocks
and other collateral were aceeptible
as security for emergency currency.
They have been acceptible as security
for deposits. They are recognized as
before the federal reserve act placed
commercial paper. unsecured, in a ref
erential class
II investment securities are stabilz-
ed, 1t will be great help to the gov
ernment in floating a loan.
The form of the loan Is still a mat
ter Of question so far as the public
10 concerned. There are many patriotic
Americans who are willing to get back
Of a per cent taxable bond issue. with
all their ability. while they may have
some doubt In their minds as to the
ultimate success OF such a fotation.
A suggestion has been made that five
year notes might be issued by the gov
ernment at 4 per cent and foated with
comparative ease, Just as the short
term treasury certificates are readily
absorbed.
A per cent five-year note would not
be taxable. and would probably sell
very quickly. They would only be Of
benefit to tax dodger If acquired by
one, but for a short period. 1t is to be
hoped that the war will be over long
before the period of maturity Of such
an issue and additional income taxes
not needed.
Income Tax Matters.
1t is within the rights of the income
tax paper to deduct not only his taxes
on real estate, but also his personal
| taxes. real and intangible. although res
idents of Washington will not be able
to deduct the latter tax for their 1917
| reports. for the tax is not payable until
May OF this year. 1t is nothing more
than business like that copies be kept
Of all tax payments and of the returns
Of both the intangible and income
| taxes, for future reference.
Benehciaries Of an estate have not the
right to inspect returns made for them
In a compromise Of claim for debt,
there can be no deduction Of the un-
claimed portion of the debt.
| 1eHdnts paying more than $500
year to landlords must furnish name
Of landlord and amount paid to the
income tax bureau. There are many
people who are subtenants at the pres
ent time in Washington. paying on an
Increased scale. II you paid more than
$500 in 1917 send the report in. Agents
Of a building must disclose owners
name on the demand Of the payer
not only name but address-and fall
ure to do SO makes him liable to .
| twenty-doll1r to one-thousand-dollAr dns.
In the event Of foreclosure and the
mortgages buys In the property. he 10
accredited with having the original Sc
| curity for his loan and is not allowed