Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-28
NEW CLEARING
COMPLETE SUCCESS
Saves TeIephoning and Dan
ger in Carrying Cash
Through City's Streets.
BY 1. A. FLEMING.


The first settlement of debit and
credit balances between banks as a re-
suit of the clearings today was &C
complfshed speedily, before the time
suggested by the Treasury Department,
without the usual telephoning between
banks seeking settlement by transfer
of credits elsewhere, and without the
necessity Of carrying 1926, 900, the total
debit and credit balances from the va
rious debtor institutions, to the Ma
tional Metropolitan Bank building Cor
delivery to credit banks, and carried
back again by them to their respective
offices.
Just at present the clearines are
more or less restricted by the let-up
in business. the tightness Of the money
market and the very limited security
trading.
On some of the big days the debit
and credit balances have reached near
~ a million dollars. and the transfer
Oh the FUNDS through the business dis
trict has been attended with more or
less Inconvenience and some little
danger.
This is avoided for all time, as the
system works perfectly.
Transfers Of credits from other fed
erai reserve member banks to the
Richmond Federal Reserve Bank are
made speedily and without much
trouble, so smoothly is the machinery
OF the great system working.
Thus the fruits of the first District
bankers Association convention have
been garnered. and still there's more
to follow. 1t will probably be less
than year before the fruition of
plans formulated at the second con-
vention.
This is r. " Fleming's day as the
one who advanced the ideas that have
been put into operation today.
CAPITAL. ResOurce~ n>nnss<.
On May 4. the date of the last call
by the controller of the currency. the
national banks. trust companies and
savings institutions of Washington
had capital of $20.213.360, resources
Of s217.7os.7o0 and deposits of s17S,-
Most of the transactions in stocks
on today's session Of the local en-
change were in odd lots, although
20O-share lot of Railway preferred
changed hands at 40. and at the close
4OA was bid. which may be taken to
express a belief in some kind Of a
payment to the shareholders when
next dividend time comes around.
A sale of Riggs National Bank
shares was reported at 465 and few
little Lanston brought IS.
Gas 5s were the only bonds traded
in, sale being reported at so.
A Transfer OF Cash.
The two principal reasons for the
sharp reduction in the cash ratio at
New York were. first. that the OPP
erations Of the gold settlement fund
institution for the benefit Of the
banks in other districts, and second,
that New York increased heavily its
rediscounts for account of the same
banks.
Neither of these two transactions,
Ill % a
temporary pulling down of resources
at New York. was at all indicative
of any weakening of the banking po-
sition throughout the country
The gold settlement fund at New
York was reduced nearly $4,000. 900
and total gold holdings in conse-
quence were brought down $4,000, 900
despite the arrivals of gold from
Canada. Yet. taking the twelve
regional banks together-that is. in
tually increased more than $7,000.000
1t is interesting meanwhile to note
in the first detailed report of bank
ratios the comparisons with a year
ago.
stood at the low figure Of 3s.2 agains,
54.2 on June 27, 1919, and the Chicago
banks ratio was down even more
from 616 to 39.9-the ratio at Boston
was 56.7 against Ala. and at Phila'
delphia 44.9 against 40.5. In the
Cleveland, Richmond, Atlanta. Kan
sas City and San Francisco districts
the percentages were all down from .
year ago, but the decrease was small
The Bond Market.
Possibly as a reflection of the closer
workings of the money situation, bono
prices in numerous instances, were
| shaded today. The decline was not at
all important The liberty third and
fourth loans were off 10 to Is cents
in the 500. Anglo-French IS. which
| were strong on Saturday. were in de-
mand again today at 99m, which
meant a half point gain from the low
| of the reaction last week. United
Kin gdom issues were less prominent
as the Anglo-Frenchs came to the
| front Mexico External As. which sole
| as high as PIN last week. and closed
at 27A. dipped to 26h.
On the other hand. there was ar
| active inquiry for the Belgian IN.
| at the high level Of 90. and the de.
of soon forcing the price above this
| level.
| Railway bonds did very little ir
keeping with the inactivity of rail.
| way stocks. 1t is the older under
| lying rails which have a long tern
! yet to run that are expected to b.
| the chief benefciaries of the rein.
| vestment demand expected after the
| first Of July. But so far the marke'
for these bonds have given no signs
| of disposition to discount the re.
terest and dividend money.
FRENCH BOURsE IRREGULAR.