Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-12
GOVERNMENT MEET
PRICE FOR LOANS
DisCountabIe Paper. Partial
Iy Tax Free, 5 to 5 Ia
Per Cent.
BY I. A. FLEMING.

Bankers generally gave much thought
today to the announcement made 10y
secretary Houston 10 the effect that the
government would pay ) per cent for
money for three months and ia per cent
for six months. beginning with the is
sue Of Treasury certificates of April Is
( II has been evidenced for some tim.
that the condition of the money market
would not permit Of much further
financing by the government under :.
per cent. the last two issues Of certifi-
Gates. even with the normal taN-free
privileged resulting in subscriptions of
only 500, 600 o0~ each. The announce
ment is made that the next combined
issue OF three and six months maturity
will call for $3.50. 900 900 or more
+ 1t is within the possibilities that the
reserve board will at once raise the
discount rates. with these certificates as
surety to at least meet the rates OF in
terest they bear.
Cause Depreciation In Liberties
The announcement of the higher
rates for these short-term investments
eNertsd 4 depressing influence this
morning on liberty bonds of the va
rious issues. There will naturally be
some shifting of investments to the
higher rates. while il will cause pub
lie utility corporations and other cor
porations and individuals in the open
market for money to increase their
lat-S
Second As were off to $3.50: second
II. $ to SS4s and fourth Al. $ to SS.5g
The first !. s were quoted at 9l.l2.
the 3 rs at 1854 and the Az victory
notes 91.3S. with the same prices for
the IA per cent
Foreign Exchange Weak.
French. Belgian and Italian eN-
change were all weak at new lows
this morning. probably because OF,
conditions that threaten to disturb
the concert of the allies. Francs were
Is centimes lower Belgian francs 80.
centimes lower and Italian lire off TO-
1927 for a dollar. Sterling was also.
soft.
Wall street Money o Per Gent.
In the face of these conditions
money opened at noon on Wall street,
at 6 per cent-that is, on sharp call.
while a. the same time a public utility.
corporation. disappointed at one
source, was compelled to pay IL per
cent for the accommodation.
The competition of the government
in the money market will be sure to
increase the cost of financing TO rail-
roads. to have an effect on the generat
bond market. as it has on liberty rs
sues. and it is within the possibilities
that will lessen the available supply
with banks and investment houses. :
1t is rather early to diagnose prooaT
BILE results. but the trend with bank
ers is to get higher rat ties. where able
to do so and. in a measure. guard
credit expansion at this time.
X. \. Harper Home. !.
r. y. Harper. president of the DIS.
trict National Bank. returned home
from the hospital yesterday fully ue-
termined to be at the bank today. put
his doctors have Influenced him TO put
off his temperance until Wednesday,
when he will be a candidate for con-
gratulations and flowers.
On the Jury.
w w. Spade of w. B. Hibbs q Co.
started in a session of jury serving
this morning. He doesn't know wheh
il will end.
Local Securities.
Today's session of the local stock eN-
change was interesting only from Inc
bid and asked standpoint.