Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-02-09

, About So per cent of the loans made
by all federal reserve banks combined
are on government securities.
1t is, therefore, Imperative" writes
the Reserve Bank of Richmond, that
federal income and profits taxpayers
make provision in advance through
setting funds aside now in thoroughly
Iiquid investments that will be avail
able when desired for the payment of
taxes. The best investment the pro-
spective taxpayer can make for this
purpose is in the current issue of tax
certificates of Indebtedness, series To,
tecause these certificates bear AZ per
cent. and are themselves receivable in
payment of taxes. While these GER
tincates are payable to bearer. the
Federal Reserve Bank of Richmond
issues interim r. ceipts. payable to the
order OF the sub riber, for the amount
OF his subscription whether it be in
fnultlples of the denominations of the
certlncates or not AS a matter of
fact, most of the purchasers of GER
tlncates in this district prefer the in
ter1m receipts issued by the Federal
reserve Bank of Richmond to the GER
tincates themselves"
Banks are urged by the government
10 buy these certificates and to resell
70 their customers. while corporations
nrms and individuals are urged to
place their orders through their local
banks. thus aiding these banks in
carrying the burdens necessarily i'm
posed upon them by present conditions
ana by the present financial needs of
the government"
Recovery Still Deferred.
In X. G. Dun & Co.'S weekly
review of business it is set forth that
the anticipated general business re-
covery is stiii deferred. but the way
~ being gradually shaped for its COM
ing foremost as a constructive eie-
ment are the continuing price read
1ustments, essential to wholesome and
tasting commercial revival, and other
IaVorable auguries include the recent
reductions IN ocean freights and the
easier conditions in money. OF dis
quieting features. the existing labor
troubles, notably those in eastern tex
tie centers, are CONSPICUOUS and the
percentage of idle machinery has
steadily risen, either because of
strikes or from the slow DEVELOPMENT
OF new orders to replace the expired
or Cancelled government contracts
mat progress mainly hinges ON prize
as has been the case since the sign
ing or the armistice, is now more wide
~ recognized, and sellers display less
independence as buyers hold off for
the further concessions which they he
lieye to be inevitable. To what lengths
the price reaction, already marked
in some instances, must carry before
there will appear the broad and con-
hdent demand necessary to vigorous
trade expansion, is not clear at the
moment; but that it has not yet gone
far enough in many lines. the dimin-
ishing consumption indicates With
the accumulated needs here and
abroad known to he extensive, and
various wartime regulations and re-
strictions withdrawn, the present
hesitation OF business is chiefly re-
Election of the prevailing disposition
to await still lower prces. even aftN
eleven consecutive weeks in which
recessions have outnumbered ad-
vances.
Commercial Failures for Week.
Commercial failures this week in
the United States, as reported by r.
g. Dun e Co, are 163, against 165 last
week. 135 the preceding week and 261
the corresponding week last year
Failures in Canada number 2, against
81 last week, the preceding week
and 25 last year. OF failures this
week in the United States SO were in
the east, Al south, 40 west and 81 In
the Pacific states and 50 reported liza
bilities of $500 or more, against II