Evening star., 1921-06-05
BY I. A. FLEMING.

fertile brain Of Secretary Mellon for
the good Of the country in the near
future. They know that he is hard
at work. that he realizes the prob
lens that have been put uD to him
to solve. as a man who has met many
hard knots in the past and worked
them to a successful ending.
As most successful bank president.
he is opposed to dribbling with a few
millions of loans from day to day and
certificates with q short-term note
issue; he may be credited with pro-
posine some plans for the retirement
of the short-term liberty bonds and
victory notes and of planning some
way in connection with the admin
istration and its advisers to give fur
ther aid and comfort to the planters
and farmers that they may make
NOV ements in their own interest to
the betterment of conditions more or
less general throughout the country.
1t is a matter Of congratulatlon
among those who have the best integ-
ests of the country at heart to know
that a man of the caliber of Secretary
Mellon and not q theorist Is In the
Treasury Department at the head Of
all the great financial movements Of
the country.
We have some $4,000 900 due US
from our European friends. say for
mer allies, upon which no interest
has been paid. although Great Britain
and France have declared their in
tent of contributing on account Of
interest in the near future.
The administration suggested the
Visibility of funding the debt and
distributing the bonds among the
American people. The government
might find it rather difficult to shift
tvry
on it's own shoulders to private in
vestors. without in some way guaran-
teeing the investment, in which case
the shifting operation might be ac-
complished without much trouble. for
the American investor is back Of his
government for any amount
The Secretary of the Treasury could
accomplish much good these days
with part of s9,700.000. 900. 1t would
raise the Treasury from poverty to
affluence: it would pave the way for
the retirement, of the floating debt.
victory notes and for the refunding
of all liberty bonds so that later
generation might face its share in
the cost of the war for civilization.
Moreover, there has been a sugges-
tion that the German reparation
bonds be f1oated in the United States
|--the one money nation of the day and
age. Great Britain is using up its sub
stance with an unemployment PEN
sion. a temptation to be idle and the
end of this kind of a policy cannot
be far off. win the coal miners and
on the state. An eating and clothing
fund is the nemesis of the job, and
the job has once more to be elevated
to position and honor before the re-
| turn of prosperity.
That was a good suggestion to the
/ tration made referring to the foa-
| tation of foreign bond issues only
when the proceeds were for use in
purchases in the American market.
OF course. they do not want their
bond trading hampered. but it would
dustrial effort. provided they had ex-
erted more than due care in the
granting of loans and hedged them
about with safeguards.
Our bond friends do not hold the
bag with the foreign bond offerings
the bond syndicates. getting their
profits quickly and being through
once and for all with the transaction.
and a s quickly as possible the syndi-
Gates repeat the operation. with the
public on the absorption end.
The last big foreign loan dragged
and from now on the syndicates will
be slow to relieve the big banking in
stitutions of their new hoatations.
while the market digests its overload.
Financing the world and reducing
armament does not go hand in hand
Great Britain never became the f1nan-
cial power it was with any such tao
tics-but rather with big guns as COL
lecting agents. when necessary.
1t is a peculiar anomoly that exists
today, with per. cent high-grade
paper. and even per cent bonds in
plentiful supply and the public anx-
ious and ready to buy United States
short-term obligations on a to u
per cent basis.
1t is but the confirmation of the fact
that the American people. hard hit in
practically all of their investments
in the last few years. are considering
safety first and income as secondary
matter.
The divers ways that corporations
have. to obtain financial accommoda-
tions without the formula of approval
by stockholders is a handicap to in
vestors. Stockholders. voting by proxy.
usually authorize the proxy commit
rectors during the year-to find later
that there are many acts that have
been. to say the least. perhaps ques-
tionable.
Corporations must purge themselves
before the normal returns
ments. continual payment Of annual
dividends or annual interest are
greatly to be desired. 1t would be too
much to expect continued activity and
high prices all the time. but splurges
are to be deprecated, as they lead to
smasheS-SeQuence.
Bankers will admit that they have
not lost much money in their CONNER
cial paper purchases. unless they have
been a bit reckless, but they have
been serious losers in stocks and
| bonds, the readjustment of bond val
ues being one of the problems of the
| last few years that have kept bankers
on the uneasy seat.
| A Successful Institution.
Directors of the Bank of Commerce
and Savings have declared the regu.
| lar semi-annual dividend of per cent
and 1 per cent extra. payable July
| to shareholders of record June 20. Al
the same time they voted to carry
| $4,000 from undivided profits to sur
tion being $4,000. while the capita
stock Of the bank is 100000. tn,
condition of the Institution, with
steadily growing deposits, with hardly
a dollar of overdrafts and no lossei
to speak of in the last ten years. y
largely to the credit Of John M Riof.
dan., cashier and active manager. Mr.
Riordan is Of the local school OF bank
/, ers. having been trained in the Ma
tional Capitol Bank and the Eas
| Washington Savings Bank.
| Directors Of the Bank OF Commerct
and Savings believe that they VIII b
able to continue dividend distribution
A on the regular per cent basis but
until this is demonstrated to their sat
isfaction the / per cent semi-annu'
ally will be called an extra distribu'
tion.
| Remittanees to Poland. 49,.
The delays and dangers incidenta