Evening star., 1921-05-25
LOOK FOR BILLION
NOTE ISSUE SOON
Bankers Anticipate Action
June IS or July 15-Rate
Probably 5 Per Cent.
RY I. A, FLEMING,


Local bankers would not he sur
prised if Secretary Mellon should
offer. with June II. 4 la. .Ir'l"r. nf
shcrt-term notes, say three-ycar ma /
TURTLES. and also A moderate amount
OF TreaS Sury certificates.
The occasion srcI'S - be especially
oppcrtunc. Bankers have adopted a
conservative atti udc. ;Hd are SOW to
lend on commercial Ia2v-. Will" the
trend of the public III nd is against
making investment in securities
during the period O. adjustment. Whe n
50 manv corporations arc passing
dividends and thcr" IS so great iDsta-
biiity throuchout I'll" stock list.
The bond season is gradually draw
i"C Ia - ,.,OS,. .tI, g.. '!'- rlod =.
th" greatest activity. for :',c summer
months are rur .=pcc;aily good for
the investment business.
f'I.riH-, he i'u:'t Iyar the bond mar
tsrI mas s,JlU::"'! any iuantity oi
rev Issues OF $ cur ties. foreign ard
domestic. and Il u"rind q! lHt-uN for
digestion OF t!l- enormous is=TrS
running from = few millions /" the
hiC Northern r3cif'"-Grcat Northerr
fotation. has been . strain on the
invest rnCNt market.
Thus IL is taat- with money in
abundant supply, III" time is rip". As
suggested ty Secretary Mellon. for the
reYiaCcm"n: Of SCmr of III" Treasury
certificates by a short-te-m not" iss'I"-
Bankers estimate the probable
amount Of such an issue at about
81 n0o. .noo.H0 and The rat" of interest
at per cent.
They believe thar the demand fnr
such an is*u" at that rate would
alfSn7h the anCur; named readily
aside. from th, sources named. there
surplus funds. would use them tenn
porarily in short term notes for
which there would hc a good open
market !" preference" to banks ac-
CeptinG lower interest
Nhicl il m ch; Ne possible to make
a successful! sale at a lower rate than
> per cent. bankers helievc that such
an issue would come IN direct com
petition with victory 49, per cent
notes. which at the market price might
prevent The SUcc. sSful mark ting of a
lower than :, Der con; note i>%u".
Delay fo- aTother month IN the is
suance of a short term not" NAV hc
made ne-rsSf-,- th.-r':gii the Frepara-
ton the department cf The notes.
As an economic fratuE> the notes
would he = sraa: advantage over the
certificates with thoir frequent issuance
and maturity. keeping the engraving and
printing bureau decidedly busy. and
also acting as an i:ritant monthly to
the money market
Local Securities.
Business continues 10 move within
restricted lines on the local stock eX-
change. Today a number OF sales of
railway common warr made at 50.
Washington Gas shares wer" IF :
point from previous quotation. These
were the only stocks That figured in
the days TRANSACTIONS.
Bonds were slow. Traction "S steady
at S1a.. Washington Gas notes have
maintained z high price average since
at 1902
Call money. per cent asked and
6Iz per cent bid.
Used without Authority.
Secretary Mellon announced today
that the statement IN the advert is
men; Of No..il Dakota boH.i. T,r-
porting 70 b. S Ened by m" Treasury
out the authority OF the Treasury De
partmert
Are You With Us. Sure
This is the caption of the circular
issued by George q Watson. ctiairTa =
OF the DISTRICT bankers annual con-
vention. Every body is going. We
naturally suppose YOU are. It viii
he the biggest event in the history
of the OF rgariZatiOn. Business be
fore pleasure IS an old axiom. This
VIII combine bus.nr with pleasure.
There is more 20 the circular letter.
which is Simply an invitation o oSnit
ers. bank directors and their friends
and t8ra'''es - :ttrrd 'hs convention.
leaving Washington or the ilth and
returning on the morning of the 18th
of June.
The indications are that il will be
the hest convention, from both points
of view-bankinE information dis
seminated and personal enjoyment Of
White Sulphur.
Receive Proteata
Copies of the forms for protesting e
the payment o. taxes on gross in
come derived from tax-free securities
were delivered by the Bank rrs' .lsEo-
citation tins 1i"r1inC TO tho various
banks. with con- Of i letter OF pro-
test /" arCc7 -n=uy tho forms.
National inks o-Ce again set forth
the fact that trer are paying the tax.
in lieu Of personal taxes. on gross in
come, which Includes certain reve-
nues from liberty bonds and other
tax-free securities. which payment
they protest. but make il to avoid
seizure and Interference with their
business. but that they hold the COL
lector responsible in accepting such
payments. The protests simply lay
the foundation for recovery suits
that may be started later.