Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-14
BANKERS ARE BUSY
insecurity LOANS
Keeping Margin Above Loans
Safe-CoIIateral Values
/ Shrink.

These are busy days for Washing
ington bankers, including trust COM
pany officials, but most Of the activ-
ity is in watching the collateral
~loans and keeping the margin &C
count thereon safe.
And this requires almost a daily
grind these days. for the market has
been going one way almost without
exception since March and going fast
and without even temporary come
backs. other than the temporary squirt
in rails that developed after the
passage of the Eseh-Cummins act for
soon lost in the presence of evidence
that the law did not provide suffi-
.Gient relief.
Not only have the bankers been
busy watching their loans and
Strengthening their own position, but
in marking down their own invest
mentS in bonds on a level with the
declining market, and some bond is
sues have shown losses on a par with
some of the stock declines.
The general opinion expressed by
many publications and business. men
has peen that this was a banner year
for banks. Their surplus money has
been uniformity we'll employed and
rates have been strong during the en-
tire year, indeed there was employ
ment for millions more than banks
had to place with borrowers.
They have made money. and good
money; that is, the great majority
of banks. but their profits have been
cut by losses on investments. There
may be some extra dividends declared,
but the chances are for conservation
of surplus.
Washington bankers this morning
expressed the opinion that the New
| York stock market was near the bot
tom; that the great wave of actual
liquidation enforced in order that the
holders, corpora lions ard indi viduals
might put themselves in a position
to pay the fourth installment of the
1919 income taxes, had ceased.
Tax payments must be made tomor-
row, and many corporations have been
holding off in the hope Of a period Of
grace or relief from Congress of some
character.
Local private wire houses with New
York connections. expressed the opin-
ion that lit would be fighting mar
ket from this time on, with the
shorts, of whom there is an army,
liable to be made to give up some Of
their profits"
= Call money still continues plentiful
at per cent.
Local Stock Market.
. Trading on the local stock exchange
was light and without much change
in the price range. Railway preferred
was a little easier, opening at 52h
and closing at So. Capital Traction
sold ex-dividend at "a and small lots
of Washington Gas changed hands at
401s.
Railway 4 per cent were strong
at So.
Putting 1t In the Records.
The Fidelity and Deposit Company
of Maryland. has issued a very hand
some and beautifully illustrated bro
chure of the entertainment and ex-
cursion given by that corporation to
the American Bankers Association
and invited guests Of New York.
Washington and other cities on Sat
urday, October rs, Immediately at the
In this city.
II win be recalled that the Fidelity
and Deposit Company entertained
1000 guests on that day: that it ran
3ve special Pullman trains from
Warrington and two from New York :;
maj the steamers Dreamland and
Qnokestacka. carried these guests
around the harbor to Annapolis and
HEound the bay and brought them
back safe. The illustrations cover
fhe trip and are complete.
New York bankers and others as
veil give iseen approval to the plan
for the formation Of the Foreign
frade Finance Corporation, the pro-
boeed new $100,000.000 corporation
launched the other day at Chicago.
Bankers are agreed that this is a
better plan than the revival Of the
War Finance Corporation. 1t is ex-
pected that the stock when offered
will be quickly taken. The CORPORA
! ton, ope rating under the Edge law
and under government supervision,
will be able to sell bonds for so to
100 years and will make longtime
credits-one to four years-in the in
terest of foreign trade