Evening star., 1918-04-14
FINANCE AND OTHERWISE.

FINANCE-LOCAL
By I. A. FLEMING.
The market for Distillers' Compan,
shares is strong and has been rising
for sone time. The company pays
mar cent dividends The distilleries OF
the CORPORATION have been closed dowT
tirht for some months; whisky Is not
being manufactured.
But tho urgent demand for liquor
has caused such an advance of prices
that the stock that the company had
on hand when tho bell tapped has
made it millions of dollars.
Just a Little Straw.
Gross operating revenues of the I'LL
nois Central Railroad Company for
1917 increased s13404.520; expenses
Jumped $e,496,6s4 Tho western ROADS
seem to be doing better than the east
ern. Six millions of the added cost was
for transportation Increases
Improving the Situation.
In direct limo with the efforts being
the financial interests OF the country TO
prevent undue expansion OF credit Is
the movement in aid of shortening
trade credit terms
Time was when tho credit EXTENDED 70
customers by retail stores was covered
by quarterly or semi-annua1 settlements;
then the habit became that monthly set
Elements were expected.
1t would seem that thirty days credit
was practically cash. but there are many
cd
and as a general rule these unsettled ac-
counts are credits to large buyers; per
haps the word careless might even be
applied to them. They pay little regard
to price and less to other details The
merchant feels that these accounts will
be settled soon, perhaps In three to FIVE
months, and the banks are forced TO
carry him. Washington is known as
credit city; it is easier to get credit,
probably. than in many other cities
Less retail credit would release much
money in these strenuous times tied up
IN customers accounts.
Checks Drawn in Lead Pencil.
A check drawn with lead pencil is
valid 1t Is an open invitation to fraud
and cheating bad enough under the best
conditions, but made worse by careless
ness on the part of the maker of the
instrument.
Generally bank paying a raised check
is obliged to stand the loss. There have
been some decisions against the maker
and in favor of the bank.
This is another little job for book
keepers and tellers. A check loosely
drawn should be an invitation to them
to give positive instructions as to the
proper manner in which to draw a
check to offer the least chance for
raising and forgery.
The Shadow on the Wall,
The "admonition and warning" issued
by the various federal reserve banks
would certainly seem to indicate that
those who will not willingly enter the
federal reserve fold and come under the
control Of the Federal Reserve Board,
under a unified system, may well ex-
pect to find themselves driven through
the doors and into the system.
Many trust companies and state
banks are knocking, knocking at the
doors Of the federal reserve system for
admission with each day The Union
Savings Bank and Trust Company.
capital 100000. of Cincinnati was the
largest applicant during the past week;
the American Bank of Baltimore. $780,
600 capital, has Joined, and others are
thinking.
Where it is a distinct handicap to an
Institution to remain out Of the fold
the result should be speedy entrance.
and 1t has been demonstrated that not
more than 10 per cent of the capital
and surplus Of a national bank can be
deposited with a non-member bank
while there Is no restriction to the de-
posit that may be made between mem
ber banks without meeting the over
loan plant.
Watching Big Salaries.
The internal revenue bureau is sit
ting up day and night in an effort to
collect its due. all its due to the cent,
but it will return that which it has
received which is not its due. which
means that some Washingtonians will
not be called upon to pay the full
amounts they expect to and some that
have paid their taxes will have refunds.
relates to the question of salaries.
Salaries vary probably more than any
thing else in the world. We have men
drawing a million a year who are
worth 1t, and the schedule runs on
down to the ordinary.
Strong objections have been raised
against covered up salaries of OBJ
5ectionable size. An ostensible salary
may be. distribution of a dividend
on stock: an ostensible salary made
by a corporation may be in part a
waste or appropriation of assets of the
corporation. An ostensible salary may
be in part payment of property.
The government wants the income
tax on all salaries that are not bona
fde and. that will not stand the test.
Melting Silver Dollars.
Melting the 25o.ooo. 900 silver dollars
in the Treasury will give 1s3,35s.a75
ounces of pure silver. The world pro-
duction Of silver in 1916 was 74.414,s02
ounces and in 1917 74.244.500 ounces.
The big United States release will go
far to helping the situation for Asia's
trade balance against us in 1917 was
1927, ,o00. 900.
And the dollar-an-ounce price Is tho
one thing that will stimulate the silver
production in the United States.
Quiet In Local Money Market.
In the local money market the past
week was especially quiet. Bankers are
giving much of their time to the local
liberty loan. and expect to for the next
three weeks. Some of the banks are
very careful in extending credits other
than to regular customers and seem to
be making efforts to bring in curtail-
ments and liQuidations in full. wher-
ever possible.
In some of the banks the weeks busi-
ness in liberty loan bonds of the third
issue exceeded the records of the first
week in the last campaign. The actual
war conditions are more favorable for
the sale than they were in the cam
paign for the second loan. American
troops are fighting at the front; the
battle Of the last three weeks has caus-
ed intense feeling and bonds ought to
and will unQuestionably sell far in ex-
cess of the expectation. Loans here
are invariably at per cent.
There is fair demand for commercial.
VII oil r.