Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-03-13
BANKS ARE mot
EAGER TO BUY
Will Take Only Sufficient Treas.
ury Certificates to Meet Gus.
toners Requirements

John Fl. Mason. president Of t,s
Commercial Trust Co., when speaking %
the new issue OF certificates of indebt.d
ness said, from what he could pa,bs,
on visit to New York on Thursd,,
the banks over there will only take tbo.,
certificates in such amounts as their
customers may ask for them.
When Mr.. Mason had charge NJ ~.
War Loans he advocated that no des
mite amount should be attached ia ssnh
issue, but that the total should remo;n
open. Then he followed n camnn;r,
of education, showing the bankers ba,,
they could make money by .pnrchnsirr
these certificates to the limit. and havs
ing the bankers In turn explain to tbeir
customers how II was to their advan,
tage to purchase to the limit for tsS.-
ton and other purposes. The resrIt
was 2 much larger subscription than Il
definite amount had been Fixed upon
the banks to unload their surplus certis.
Gates on customers and BY 80 do;n,
every one was making a profit, as. pc'
cordinE to Mr.. Mason's information tbs
banks are only going to subscribe for
such amounts as their customers msv
voluntarily ask for. there will no NJ
incentive for them tn push their sale
Mr.. Mason said that in his on;ni,,
the prices for these certificates sbo",d
follow the fluctuations of the monor
market and the law Of supply and 10.
mand. He does not believe in anv hail.
being placed around them to make them
more sacred than any other government
security. Even the British consols bs
said, are permitted to follow this law.
German bonds. espacially Cerm,,
cities bonds, are rapidly going out ~
favor these days. They were onlv
bought for purely speculative purposes
anyhow, those buying them expecting
to gain through a favorable turn in tho
exchange Of the mark.
A partner In q large banking hons.
in the downtown district remarked that
he did not believe that there were vprv
many actual German bonds held in this
city. Most of the purchasers hold
merely an interim certificate of the
house selling these bonds. There was A
regular orgie Of buying Of these honds
recently. he added. but when both buyer
and seller began to take stock Of wba.
was being done. halt was called.
III Iut uIct ne sblu. most, w
not all Of these bonds, are drawn bv
lot and the numbers are published in
Germany, but 80 far as he knew Ia
believed no arrangement had been made
to publish the drawn numbers In this
country, 40 that a man might own one
of these drawn bonds for years and
know nothing about il. Meanwhile as
usual. the interest would cease.
We don't recommend these bonds IN
our customers, he said. Or course. Y
they want them we get them from
a reliable house, but we give no guar.
antee beyond that. the rest Is up to the
buyer. There are people. he remarked.
buying these bonds who cannot read
| them when they get them, rs they don't
understand German.
Another investment banker said the
difference in appearance between one II
these German bonds and what We. in
the United States, are accustomed to see
as bond is very marked. He said
! the German city bond looks like chesN
Christmas card. The French bond he
said, is still cheaper looking, and as
far as appearance is concerned might he
considered creditable as the bond OF
school district of 'Squecdonk,
From A seat Of high favor the German
| bond has. within few days. fallen 10
level where il has few friends, ac.
cording to all reports.