Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-25
BY !. A. FLEMING.

street, despite the fact lower rates
of interest were offered.
The amendments to the District
code, IL they became law. as they
probably will, both houses having
virtually given full consent thereto,
will be distinct inducement to bank
ers to make their loans in the Dis
trict. as the legal rate will then be
raised to per cent instead or the
present s per cent. With this latter
rate as the maximum. bankers are
naturally tempted to take their
money to New York, where they have
placed millions without much trouble
at to S. and even as high as 10
and II per cent, occasionally higher.
The District code does not permit
of 10 per cent interest being charged,
as some have claimed. close investi-
cation of congressional action at the
time of enactment showing that Sen
ator Underwood. then in the House
of Representatives, offered the amend
ment, which was carried. for the sub
stitution Of per cent where the
Senate had sent over the 10 per cent
rate. as the maximum. Failure to
make the correction has been re-
sponsible for many mlsunderstand-
ings.
one trust company official made
the statement that an per
cent legal rate would make him with
draw S2.500,000 from New YORK LOT
local needs.
II one banker does this, others will
follow suit.
There is a distinct disposition on the
part of bankers to hold off from new
ventures; they hesitate to get back OF
new building propositions. recogniz-
ing that wages, NEUTRALITY-SUSPICIOUS.
i'm fact, that goes into structure
are decidedly high. and they believe. in
common with nearly every one else,
that the time cannot be long delayed
when lower levels will be the order
of the day.
Is 1t the Turning Point:
In this connection it is interesting
TO note that the signs of the times
are directed toward the turning point.
as interpreted by some of the stu
dents of economic conditions.
The serious slump in the prices OF
silk, cotton and rice at Toxic came
after a ten-day drop in prices. and
was so serious that the exchanges in
Japan had to close. Japan is now
recovering.
It's long. long way to Japan. but
when silk and other products go to
smash there the reflection is sure TO
come elsewhere sooner or later.
Two big department stores In
Brooklyn announce the most drastic
cuts in clothing and shoes. and mer-
chants everywhere are Following
suit.
The profits of all the great corpora
tions have been enormous and this,
too. desnite high wages and big taxes.
Defiation in the stock market dur
ing the past week has been drastic
in the extreme, and the so-called out
raixing up conditions and delaying ar
rival of freight on time, ETC.. seems
TO be on the verge of wearing itself
out. Labor. however. has only hesi-
tated in putting over claims for
higher wages. but if commodity prices
so off it will be much easier to deal
with labor.
A steady sliding down the hill
in the operation of getting back
TO the proper levels would be better
than precipitate smashing break
because there is no. telling what 1t
favor extreme caution in commit
nents by business men. higher rates
for money, and until government
financing has reached the stage where
the needs of the government have been
provided for-if it ever does.
provided for-if 1t ever does-but lit
tie If any expansion.
The heavy losses sustained in the
various issues of liberty bonds and
victory liberty notes have been oc-
casioned. not by the limited liquida-
ton of the small buyer, but by reason
worth of bonds by great corporations,
under pressure to finance themselves.
Bankers Give Approval.
1t is within the probabilities that
within a very few days the old meth
cd of settling debit balances in the
Washington clearing house by cash
or through the sale OF exchange on
Baltimore and New York will be
abandoned for the much more con-
Senient way of charging debts to
debit banks reserves with the Rich
niond bank. of which they are mem
b"rs: also that actual cash may be
obtained s the Treasury rather than
ordered frcEl Richmond. Baltimore or
other reserve .cnters.
IT s.t.le like improvement. results
fro. n the next District banEar:;' con-
cnntion. it will be but another feather
in the caps Of th,. junior bankers. who
are putting forward suggestions and
81 towing how II can be accomplished.
The father II she bettcrments re-
chairman cr this ye.rT symposium
ard much is expected from this fca-
tr:~e. the m,st successful Of he 1919
gathering.
The Steinmetz Corporation.
number of very prominent local
financial men are interested in the
promotion of the Steinmetz Electric
Motor Car CORPORATION. with general
Offices in Baltimore, DR.. Charles p
: einmetz being the chief consulting
engineer, who. after a long period in
the same position with the General
Electric Company. has so far COM
rleted his experiments t. he able
to promise an electric truck for in
dOor u.s. and delivery wagon that will
he much cheaper. first cost and oper-
:ting. than any like vehicles on the
r"a-ket TODAY.
The capital of the company is So
coo 900 DER cent cumulative preferred
stock and s10,000,000 common stock of
no par value.
Local officials connected with the
institution include A. Robert Elmore.
president: J. p. Story. jr.. vice presi-
dent. and Nelson H. Truet. secretary
and treasurer.
They are also on the directory. as
we'll as William F. Ham, president of
the Washington Railway and Electric
Company. and Guy T. Scott, president
of the Continental Trust Company.
Other directors are Herbert A.
Wagner of Baltimore and Lindsay
Hopkins of Atlanta. with Charles P.
ST AinmetZ.
The latter. one of the electric
reniuses Of the age. has given fun
Endorsement to his plans for the
building of these trucks and delivery
wagons. with reliability and simplic-
Ity. great saving of weight speed on
grades. the batteries recharging on
DOWN grade, increase mileage and
less cost.
Reading Annual Report.
The Reading company rerorted for
-" year ended December 81. 1919. a
surplus of s9.571 1905. equal. after pre-
rred dividends. to s46e share. as
impaired with a surplus of $40. 7e4-
&37 in 1918. or s511 a share ON the
common stock.
Local Securities
Some corpora tioDS with c,o.l. ,;s+