Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-09
FEDERAL FINANCING
INNEAR future
Maturities Near at Hand.
Stocks Show Weakness.
Local List Steady.

Treasury Department is providing in
clude that portion Of the 100000 600
Treasury certificates maturing De.
cember Is. not held for payment Of
taxes: STE, 000, 000 certificates matur-
ing January 2, and $125, 0oo, 900 on JAN
uary is.
On December Is the interest on the
fIsl hurry loan will also become
due, calling for $140.o00.0oo addi-
tional
The Treasury's current operations
during October and November show
a net excess of expenditures over or
binary receipts amounting to $751;
l34,068.15. of which about $112,0 200, 900
represents payments made to rail-
roads under the transportation act.
. 1t is expected by the department
> that the last quarter of the year will
show a balance on the right side Of
the ledger, through the payment of
the fourth installment of income
taxes.
On November 80. there were out
standing $2,475,000,000 Treasury certifi-
Gates.
Secretary Houston. referring to the
distribution of certificates. says:
The three months which have
passed since the last quarterly tax
payment period have been marked by
a still further distribution of Treasury
certificates among investors and .
further reduction Of holdings of Treas
ury certificates by the banks. The re-
porting member banks of the federal
reserve system (about S23 member
banks in leading cities, which are be-
lieved to control about 40 per cent of
the commercial bank deposits Of the
country and to have subscribed in the
first instance for perhaps IS per cent
of the Treasury certificates of indebt-
edness now outstanding) held on No
vember &c, 1920, only about 1913, 000,-
zoe of Treasury certificates, as COM
pared with reported holdings on August
II. 1890. of about $4,000. 600. and on
November g. 1919, of about $81S, 000,-
600. On December 3, 1920, the federal
reserve banks reported that there were
pledged with federal reserve banks
only about S214,e00,000 of Treasury
certificates to secure loans and dis.
counts, notwithstanding the preferen.
tial rates still maintained in many Of
the federal reserve districts and the
prohabi !ty that borrowing banks
would use Treasury certificates as con-
venient collateral to secure loans for
commercial purposes"
Taking Their Losses.
There is a very general movement
on the stock markets, and bond markets
also, to sell securities for the purpose
pf taking losses in connection with 1890
income taxes ~
The declines of the year have been
exceptionally severe and more general
throughout all securities than usual
II IS doubtful If there mas ever been
so long continued a weak New York
stock market, SO sick and with such few
promises of recovery. 1t is on the rec
ord OF the street that a market cannot
go one way all the time-there comes
a rally some day. but the long-beiated
rally this time must be nearly = record.
There have been sicker markets, it
has been necessary to close the exs
change. as following the outbreak of
the world war, but the recovery was
nothing like as slow as the present
action.
Cutting of dividends, shutdowns, re-
duced hours and other signs Of business
depression multiply and even today
there were evidences Of forced lQuida-
tiod in securities
IN oroer to take credit for losses
sustained in the market in making up
income tax schedules. 1t is necessary
to make actual sales OF the securities,
but the seller may buy back imme-
diately-and on a rising market would
later have to report his profit II taken
in 1t is also necessary to have made
a profit before deducting loss.
but many operators have not recorded
gains in stock speculation ana have
no need to take losses.
Fleischmann Financing.
nounces an issue Of ten-year per
cent gold notes at par. through
Harris, Forbes & Co. and w. E. Hut
ton & Co.
Reduce Working Hours.
The White Motor Company has an
nounced that it will endeayor to keep
its employees at work IF It doesn't
II will be maintained, but hours reduced,
. but the directors will also cut the
shareholders dividends
On the Local Exchange.
Business was rather light on to-
days session of the local exchange,
orders being few and far between.
1t is expected that January will be
ment standpoint, as there is con-
siderable steadiness in the list and
no severe fluctuations in values.
hence the chances are good for q
liberal reinvestment of January !
dividends and interest payments.
Railway 4 per cents seem to be
very firm, with all offered taken at
So. Potomac Consolidated S. brought
san and are firm at that figure. Rail-
way preferred has settled around
53A Mergenthaler slow at 121Y.
Liberty National Bank stock showed
on the sales sheet at 124.
Consolidation Predicted.
There are rurnors of consoiida-
ton of two or three savings banks.
There is ample opportunity for the
consolidation of Il dozen savings in
situations.
Merger Talk.
Revival of merger talk regarding
the traction companies. much as 1t
is desired by the people of WASH
ineton, would still seem to depend on
me snareholders of the TWO COM
panies.