Evening star., 1920-06-18
BANKERS DRAW ON
NEW YORK FUNDS
Home Loans Not Disturbed.
Government Borrowing
Cuts Deposits.
BY i. A. FLEMING.

. heavy shrinkage in the last few days
more than normal and more than ex-
pected. even considering the second in
stallment of income taxes and the heavy
payments on account of real and per-
sonal taxes in the District of Columbia
The so-called secondary reserve" in
New York has been materially reduced
also. as the banks and trust companies
have called many loans there in re-
plenishing their own supply The ad-
vantage of the New York reserve has
been demonstrated in the fact that call
loans there were Immediately paid. and
local loans were undisturbed, as they
could not have hoped to remain but
for the big loans on Wall street. which
were recently condemned as discrimi-
nation.
Bankers as a rule. offer no excuses
in finding fault with the Treasury
Department for the recent offering of
So and per cent certificates. They
claim with considerable vehemence
that it was unnecessarily high
Ss-Tate, that II disturbed bank deposits
-s.i >that millions have been withdrawn
q. from the banks of the country for
,s,investment in the Treasury certificates
so at a time when the banks were called
a. upon to sustain the heavy with
- ,drawals for tax payments and when
~ deposits in banks should have been
p, conserved. if possible.
..'-- Local Banks Affected.
Local banks were affected Some
- - OF the trust companies reported heavy
~ purchases of the 5s4 per cent GER
=. .tificates as they have but six months
NJ before redemption while others re-
~ port large purchases of the per cent
one-year certificates.
x.ss The result of the withdrawals is
=. shat money is very tight here and
sxselsewhere at the present time with
/. -s~officials discriminating and very gem
,.-aerally sticking to the old per cent
.s.;rate.
~see+ Just at present. when investment in
~ the security markets is exceedingly
isHilight, the rates on the Treasury Ger
proved sufficiently attractive
to people who would not risk their
- Afunds in other forms of employment.
The tax-exempt features really made
1.-THE yield on the certificates much
- smore than the interest rate itself.
ss1 Bankers hope that the Treasury
a. will not repeat the high rate on 9TH
.,,sse ser issues. but will test the market on
s.lower interest first.
Help Liberty Bonds.
N.s. Investment conditions referred to
Adhave also aided in making a better
cinvestment demand for liberty issues
and victory notes. Bankers report
demands for big blocks of these is
Ssysues-
.-.,,-.About a week ago. when it was an
III fVerve bank had adopted a plan of ac-
-ss-cepting notes secured by liberty and
issues at market value of the
k<T securities, 1t was expected that the
g same method. No surprise was ex-
pressed by local bankers when they
were notified late yesterday after
- noon that this action had been taken
in this district. Not only effective as
to new loans. but the collateral back
OF old loans will have to be increased
June 21 to bring the security up from
market values as agreed. s5 for liber-
victory
Treasury certificates.
Dinner Last Night.
R n. Harper, president Of the Dis
trict National Bank. was the host
at a dinner given last night
at the Arlington Hotel. to the officials,
directors and employees of the Dis
trict National Bank. 1t was in the
nature Of a get-together meeting.
with one or two short speeches only
in the interest Of harmonious coop
GRAFTON.
Mr.. Harper leaves for San Francisco
tomorrow to attend the convention.
Meeting This Afternoon.
Chairmen of the various committees
to handle the American Bankers AS
sociation convention here in October
will be named at a meeting of the
executive council and the committee
this afternoon.
Local Securities.
New lows were made on Railway
shares on todays session of the local
stock exchange. Fifty shares of the
preferred brought 80 and 3S1a, while
ten shares of the common sold at II.
A few shares of Washington Gas
sold at 43 and of Lanston at 1914.
Foreign Exchange.
Pound sterling. 400: franc, .0s1 !;
mark. .0267 and lire, .0622.
Dividends Declared.
The Commercial National Bank will
pay its regular quarterly dividend of
212 per cent July / to shareholders
of record June 26.
Lincoln National Banks regular
semi-annual dividend of per cent is
payable July 10, books closing July /.
The Continental Trust Company
will pay it's regular quarterly divi-
dend of 1h per cent June 80 to
shareholders of record June 26.
Personal Mention.
Thomas L. Hume. Jr., has joined the
forces of the Fidelity Securities Cor
poration of Maryland. taking a posi-
ton in the investment department
Young Mr.. Hume is Washington
boy. served during the war as a naval
aviator and since has been employed
with the United States Shipping