Evening star., 1918-02-23
LOCAL BANKS TO SHARE
IN BIG SUGAR SYNDICATE
BY I. A. FLEMING.

4 Washington bankers have been invited
TO participate In the movement to finance
the Cuban sugar crop. Unquestionably
some Of the larger institutions will ac-
cept. as the terms offered are attractive.
The Guaranty Trust Company. National
City Bank and Chase National Bank. all
Of New York city. have been invited by
the food administration to- form such a
syndicate to provide funds in the form
Of a revolving credit up to 500. 900 600.
Syndicate members are to take for their
advances either ninety-day notes or ac-
ceptances at pei cent above the prevail
ing effective basic rate established by the
Federal Reserve Bank of New York for
rediscount of bank acceptances.
In addition. syndicate members will get
a commission equivalent to three-fourths
Of I per cent for each ninety days on
drafts accepted. or notes discounted.
which will make the total return to the
syndicate about per cent, based on the
present basic rate of rediscount of the
reserve bank Of New York.
Both notes and drafts will be eligible
for purchase and discount by federal
reserve banks.
The minimum participation offered
to any Washington bank calls for $780,
600 subscription.
Selling Dollar Acceptances.
New York reports rather free selling
of dollar acceptances during the last
few days. dealers naturally firing of
carrying bills at per cent with money
loaning at per cent.
The suggestion was made that the
banks in the Cuban sugar syndicate
divert some if their big insight profits
to maintaining more steady rate on
call loans.
At the present time there is a $780,
100000 money pool in New York to keep
call money from going higher than 6
per cent, and it would not be surprising
if a less pretentious pool should be or
ganized to stabilize call loan rates,
thereby giving dollar acceptances
chance to prove more attractive.
Mexican Petroleum Dividend.
The directors of the Mexican Petro-
leum Company have increased their
dividend from a 6 to an per cent
basis.
New Treasury Certificates.
The new issue of $500, 100000 Treas
ury certificates will be offered to banks
February 81 and books will close March
8. They will be interest bearing at y
per cent, and will be issued in denon-
nations as low as $500.
Washington banks are ready to do
their share, orders DelnS ready lot
large blocks.
There will be no further increase in
the rate on certificates in anticipation
Of the next liberty loan.
Southern banks finding the stamp tax
burdensome and a hindrance to the pur-
chase of the Treasury certificates may
follow the example of the National
City Bank of New York, which recently
sold a large block of certificates. So
co0.000. to the reserve bank of New
York. under repurchase agreement, thus
avoiding the stamp taxes of $1,000
The forthcoming issue of Treasury
certificates may be redeemed at any
time on ten days notice.
On the Local Stock Exchange.
On today's session of the local stock
exchange a $1,000 Capital Traction 5
per cent bond sold at 9s1s, and ten
shares of Merchants Transfer and
Storage brought 100.
Bidding on Capital Traction stopped
Mt 50. while the asking price was fix
ed at S3.
Bid prices on American Graphophone
common, 81: on the preferred. IS.
For the week ended today. FIVE ses-
sions. aggregate trade of the exchange