Evening star., 1919-04-13

usually in the market for moderate
amounts. Thus in 100? but $233.5co
ship. sales falling as low as 5000 IN
August and as high as $50.000 In De-
cember, while double this volume OF
business was transacted In lSio.
, Traction SIS sold from 11+A. the low
in January, 1898, to 12oA in May OF
1910. and back again to 1oe y in 1911.
In 1909 80 was the high price on
Railway As and in 1911 S2A was low:
Washington Gas SIS moved up TO ilo
and down to 1o4E in 1910. while 70
tomac SIS. first mortgage. sold TO
1o9h in 1911.
This is not especially pleasant
rambling to those who did MT stand
from under. but 1t reflects the atti-
tude of local bankers in those Gays,
and any insinua tion to the effect that
local bonds are out of pace with the
b worlds bond issues" brought answer
that "they are worth all they are SELL
ing for"
4. Washington Branches, Develops.
Today 1t is an entirely different mat
ter Washington has passed the stage
of the village and has reached metro
politan size
Our bankers have broadened. just
as our deposits have more than dou-
oied, and our people have become. IN
a sense, capitalists and familiar with
the general investment field
Investors have come to trust their
bankers Judgment, and in these days
when an inquiry Is made as to
desirable venture In bonds. the
banker will ask few questions and
:. the chances are that he will recon-
.>mend an issue with a national market,
one in which transactions are record
cd every business day. and the broad
er the market the better.
At that, the banker might repeat
= his recomme ndation for Capitai Trac-
; ton SIS, Potomac Electric first mort
4. gage as, or Washington Gas 5s. at
present prices; perhaps other local
issues. for our market has now swung
into line with bond averages the
world over.
But the chances are that the banker
will reach for a bond list that is
placed there every business morning,
containing the bid and asked prices
for two score or more issues, or he
may study the bond list in his daily
paper and then and there make
recommendation, perhaps of high
grade railroad issue or an industrial,
for the great Industrial corporations
isues have excellent value, and in
these days, yield good returns.
Ten Times the Bond Trade.
an investment center with its growth
in wealth and population.
In the days. c7on before the war.
bond sales probably did not average
much more than $4,000. 600 to $5,oo0.-
00e annually.
Today it may seem like an~exag-
geration to some readers, but 1T is
nevertheless a fact that the bond
business, Of the District. aside from
the liberty loan issues. will aggregate
not far from SAC, ,000. 600 annually. and
increasing steadily, each liberty loan
temporarily stopping other bond busi-
ness. as statesmen turn their attention
to the business Of the people.
Ownership Certificates.
There.is much misunderstanding re-
sarding ownership certificates and
;ietr' use in the collecting Of coupons
TO the trouble and annoyance Of bank
crs. Form 1001A. green ownership
certificate. should be used only with
checks for foreign dividends and in
tefest items of foreign governments.
1t should be used with interest cou-
pons of foreign corporations only
when There is no paying agency for
the coupons in this country.
Form 1901. yellow, is to be used only
when presenting items of interest of
foreign corporations that have a pay-
Ing agency in the United States; also
FOR domestic use when tax exemp-
ton is not claimed.
The National Bank of Commerce of
New York, has-just issued a card con-
tanning, in condensed form, full in
formation as to the number and char
acter of certificate to be used for the
various coupon issues. tax free. exemp-
ton claimed, and the various uses in
connection with partnerships nom
resident aliens, etc.
Victory Liberty Loan.
Secretary of the Treasury Glass
holds that the present prices of the va
rious issues of liberty bonds in the
market does not jeopardize the sue
cess ofsthe victory liberty loan; he also
holds that the only equalizer of cur
rent bond. values is the requirements
OF supply and demand; supported mar
kets reflect untrue conditions.
1t is expected that the interest rate
o. rates of the victory liberty loan Is
sue. or issues. will he made public
Monday.
All the publicity for the Campaign is
ready. including the posters. Impress
ing the necessity of finishing the
5oo. but they make no mention of the
interest rate.
Conversion of 4 Per cent Libertys.
Liberty As of 1924. first converted
and second liberty loan As, bonds on
which the conversion privilege ex-
pired with November. 1918, may be
converted until official notification of
the expiration of rights into Az per
cents.
Interest on first As converted is due
June Is. and on the second 4s, May
Is. Bonds for conversion presented
for exchange before the dates named
should have the coupons attached,
should be detached.
1t Will not be long before the Treas
ury Department viii be doing more
anticipating. putting out certificates
of Indebtedness in anticipation of
1919 taxes which have not been paid
and perhaps on 1919 taxes as well.
The Treasury is spending enormous
sums of money and the appropriation
committee of the House will be ready
with suggestions for much larger
amounts. actually needed when Con-
gress shall reassemble.
American Optimism.
We have had an excellent exhiai-
Ion of American optimism in the
-sew York stock market for many
weeks. leading up to 1 100000 trading
asst Thursday and with a practically
advancing market from January IL
With all this activity and higher
1rend of prices. there have been
times when men who are in the ha bit
of lining up with those who usually
been unable to follow the leaders be-
cause of the varied hues shown in
The Eurorean news. -~e~ --~ '-
But American optimism seems
& {3:.linant.. The theory seems to he
t-'at lit will all come out right. and