Evening star., 1921-03-07
LOCAL. SECURITIES
IN ACTIVE REQUEST
Prices Strong-Some New
High Points Reached.
Banks Prosperous.
BY I. \. FLEMING.

Local stocks and bonds showed a
decided revival of interest on today's
session of the local stock exchange.
Whether the better feeling in the New
York market was in any manner re-
Sponsihle for the enlarged business or
hot was not evidenced, but there Were
buyers anu tRer. were offerings and
their limits as TO prices were near
enough TO permit OF satisfactory re-
suits.
Invariably prices were strong as
compared with recent quotations.
Sales We're made at 81 for Capital
Traction IS. 81 for Potomac Electric
general is. 59lz for Railway As and
100 L for the Washington Gas notes.
the -" per cents.
Stock transactions included Rail
way preferred at aeiz. the high on
this movement; Capital Traction.
Ms Wdshngton- Virginia common.
], and Forcoran Fire Insurance at 80.
Washington Gas brought A.. also
new high on this movement. Odd
lots of Lanston sold at 73a73i..
Banks Satisfied.
There probably is not a national
Dank IN the country that is not salts
fed to be a stock holder in the regional
bank of which it is a member These
banks have made enormous sums of
money during the past year. but the
national banks also enjoyed their best
year, averaging 230g per cent on their
capital stock as compared with 2l5
per cent in 1918
That they We're able to make this
excellent showing is largely due to
the fact that the rediscount privilege
OF the federal reserve system was at
their disposal Par collections the
quick ana inexpensive method of the
system in the transfer of funds
ha.
minimum cost, all contributed to the
net returns
The public is greatly benefited di-
rectiy through the ability of the
banks TO care for the needs of busi-
ness. agriculture. live stock and
varied allied interests
Member banks have invested 6 per
cent OF their capital stock in furnish
ing their pro rata share of the stock
OF the regional bank and receive dvi-
dtfds OF per cent. low return COM
pared with the general value Of money.
Ihey might receive larger dividends on
their stock. but this is not held TO be
as important as a matter of interest on
tneir reserves upon which banks have
been accustomed to receive per cent
but on which the reserve banks paw not
cent.
Protests. however. have been made by
GOOD bankers against this, on the theory
that interest on deposits is contrary TO
Sobi'i bdihiilS tIlaI II WOOlu De 1un0a-
mentally wrong for a central bank to
pay on deposits.
Foreign Trade Finance Corporation
The Wall Street Journal this morning
mas This to say of the prospects for the
Dig foreign finance corporation, Foreign
Trade Finance Corporation:
Due to the present complex economic
situation progress in organiza ton OF
the Foreign Finance Corporation has
not been as rapid as expected.
Ii was sa id last December by a
banker directly Interested in the or
ganiZation of this corporation that
every effort would be made to have it
in operation by March /. 1t is now ad-
mitted that there is no hope that il
VIII be able to function for several
weeks. poss bly, months.
Unexpected opposition was encoun-
tered IN various sections of the poun-
try. Particular attention has been
called to the indisDosition on the part
of Chicago bankers to subscribe Ad-
vices from the south indicate that
bankers there feel the south should
operate its own Edge bank
An effort is being made. however
to absorb the Edge law bank recently
organized in New Orleans. and if the
effort is successful it is hoped south
ern bankers will feel more disposed
to support the big New York bank in
process of organization.