Evening star., 1921-09-16
FINANCING
AGREAT SUCCESS
BY 1. A. FLEMING.

SUBSCRIPTIONS for sl,700. .0o0, 900 com
bined issue of Treasury certificate
and short-term notes, announced Ly
Secretary Mellon, for the various is-
sues of September Is demonstrate
again the abundance of money, the
fact that it is not being invested on
Wall street TO any great extent and
also the patent fact that the public
has abiding faith in government Sc
curities.
1t is announced. too. that the banks
and the public will back larger issues.
In the view of many bankers the
certificates and notes are an excel
lent investment for bankers, especial
ly at this time, when the demand from
merchants is not large. and winch th.
usual source of employment of second
ary reserves. the New York stock
market. is easily glutted and rates
are lower than that of either of yes
tfrdays issues: Call money touched
4R per cent yesterday and again to-
day. showing that the certificates Of
fer. much better employment for
cash
Washington banks lose part of the
advantage accruing to other national
banks through investment in govern
ment securities. through the ruling
gross profits returned from invest
ments in semitaX-free securities
with certain limited amounts abso-
lutely free, are taxable.
On the advice of the counsel of the
District Bankers Association the
| taxes have been paid under protcs,
on income from these securities
One of these days this apparently
unjust assessment may be remedied.
An effort to recover and to end the
practice should be made.
An Unpleasant Story.
The Wall Street Journal this morn
ing publishes a story of the deferred
tions, not only deferred but passed,
many of them never to be made up.
In this list every single one is 4
disappointment to some investor.
counting on certain specified income
as sure thing. :he aggregate reach
ing over s1,6oS,a35 quarterly: which
If repeated for a year will bring
, practically $27.446,109, a full years
omissions-a serious calamity IN
many investors.
Nor is the outlook encouraging that
! this will be avoided
Passing of Cuban Cane Sugar pre-
| ferred per cent dividends meant a
\ loss to shareholders of S3,50O,O00 an
nually.
| Several large corporations have
| skipped their dividends recently that
| count heavily against the investor
Pierce-Arrow. $500. .00O: Central Leather,
| S2.200.000; Virginia-Caroiina Chemi-
cal S1.1l7-343. There is hope that some
of the corporations that have shown
| betterment in business will be able
| to make payments on deferred divi-
dends accounts, but not to any great
extent, compared with the total loss.
Preferred shareholders in Columbia
|Graphophone will lose $691.s61 if n
years dividend is passed or deferred,
| although the dividend is cumulative
| if earnings improve sufficiently TO
permit.
But there are scores of corporations
! in the same fix. many of them enjoy
| ing high rating commercially and
with long records of successful cor
porate effort back of them.
! Security Savings Extra Dividend.
Directors of the Security Savings
| and Commercial Bank have declared
! the regular quarterly dividend of
| per cent, payable September 80 to
| shareholders of record September 26.
! At the same time an extra dividend of
| l per cent was declared, payable on
| the same date as the regular distri-
button, with the same date for closing
| books.
Local Securities.
Trading on the local market was
| SLOW, OfQeTS lew ndQ prices well
maintained. A sale of 100 shares
Washington Market stock was re-
ported at 2S. Bonds were STEADY at
| 81 for the Potomac general Is and 81
for Traction 5s.
Capital Traction sold sparingly at
| Sc. Call money. sig bid and 6 per
cent asked. Some loans were made
at per cent. =
| On to California.
! The first special train for :he
! American bankers convention, in Los
| Angeles. is to leave New YORK to-
day. The convention dates are Octu-
Der 81. inclusive.
The train leaving today from New
| York, goes the northwestern route.
| taking in Medicine Hat, Bann, Van
couver, Portland. Shasta Springs. Sam
! Francisco and the Yosemite Valley.
Scores of special trains will follow.
| from all important cities.
To O6er Land IS.
Secretary Mellon today stated that
! in accordance with the general plan
Of financing of the federal land banks
as announced in connection with their
| last issue, and in harmony with sug-
gestions recently made, the federal
land banks will about October / make
another general offering of federal
farm loan bonds.
! These bonds will bear per cent in
terest. The selling price and the
| amount of the issue will be announced
! later