Evening star., 1921-01-16

reduced the rates of discount 10
member banks, but the Secretary OF
the Treasury has recognized the
to 1i2 per cent on the short-term
maturity OF Treasury certificates
marketed yesterday
Wall street has discovered it through
there being sufficient loanable funds
at per cent on call and money sent
there from other cities that is not
working at all, save for tho interest
rates paid by the New York banks
| In common with other institutions
local banks have ample funds. large
increases to the credit of depoSitors
In the aggregate over S3.300, 900 since
January l have been made, and the
! demand. of the kind that secures i'm
mediate attention, is not very ur-
gent.
1t would be possible TO place millions
in the District on longtime real es-
tate mortgage paper. but for some
treason there is no mortgage money.
A local trust officer, commenting on
\ this scarcity this morning. declared
that 1t was not so much due to the
refusal OF those having money 10
lend to accept the higher valuations
OF the times, as reflected by the iAar-
ket today, as it was because IN
vestors favored other longtime.
! high grade. high-rate investments.
and that the most conservative had
been placing their funds in Treasury
certificates. as safe and being free
from normal taxes, an especially
good purchase.
III He admitted that valuations at this
time were high on practically all
property, but declared that so far as
he could see there was no chance for
any improvement in the housing con-
ditions Of Washington, unless, per-
chance, the economy of the incoming
administration should result in the
elimination of such an army of en-
ployes as to cause many vacant
homes and apartments.
~ Certainly the commercial interests
OF the city are not urgent borrowers
at this time. They are going slow
and buying occasionally to replenish
stocks, as frequently as necessary.
! and will not lay in large stocks of
\ merchandise until there is a decided
] Improvement in buying and more Set
] tied conditions as to manufacturing
\ industry, wages. etc.
III With the thrift habit thoroughly
! inculcated in the minds of the people
\ a steady increase in deposits of banks
for the next four or five months. or
JIuntil the summer vacations begin
\ their inroads on savings. There may
be some heavy Withdrawals through
the departure of war workers and
\ others, but the losses through this
! source may not be very heavy.
III AS conditions in this city reflect
> conditions elsewhere to very large
\ degree, the inference in favor of con-
\ ply for all needs seems more than
\ justified.
III Recruitment Going On.
III Readjustment is going on steadily.
Retailers are meeting the demands of
] the public and slashing away at
] prices on needed goods of all kinds.
! and buying is picking UP with every
i indication of, f,acceleration in the near
future.
III Manufacturers are adjusting their
affairs, and they find for once that
their employees are ready to agree on
any fair basis for wage reduction
needed to meet the situation.
facing the necessities of business
have forced their shareholders to
participate therein through cutting
OF Of part of their dividends for
time, resulting in the Strengthening
of their cash resources. This done,
the situation is improved and bor
rowing avoided.
ii Gradually the situation grows bet
ter, and the fact that progress may
be reported each week is some en-
I Icouragement to business people.
N With the coming of springtime the
Improvements should be materially
enhanced. Any betterment in Europe
will be quickly reflected here. Work
! on the formation of corporations for
the furtherance of foreign trade to
aid the poverty ty-stricken governments
of Europe in buying our surplus
tproducts is progressing satisfac-
torily.
II Movement In Right Direction.
The action Of the six big national
I banks Of the uptown district. Riggs.
4 Metropolitan, Commercial, District,
American and Federal, in agreeing
movement in aid of shorter hours for
bank clerks.
The early clearing hour is o'clock.
Only checks made up to the close Of
be cleared. There will be no settle
ment Of balances, either debit or
credit.
Balances will simply be carried
over to the regular clearings and
added to the results there, and
and debit of accounts with the Rich
mond bank of the federal reserve
system.
Bookkeepers frequently have little
or nothing 10 90 IN tnt HTSt anu SEE
ond hours of the morning. while they
wait for the new business of the
day to develop and the return of
checks from the clearing house. With
! the new clearing session the checks
will be back and entered. and the
mo funds and other dishonored
items returned to the preAenting bank
I before the second clearinss are over
and the new rush of business at hand.
There is no good reason why other
national banks within a short dis
tance Of the clearing house rooms
should not join \the movement. but
a delay in starting, had unanimity
been attempted, would have been in
! evitable.
bank officials Of Washington-at least
! many of them-do not know what
early closing looks like. and any
I movement in the direction of tighten
u ing their work should be encouraged,
either by lessening or by speeding.
There IL Something in II.
n "As matters now stand. the lower
! incomes escape entirely, while indi-
l yiduals of great wealth are evading
the impost through investment in
l tax-exempt securities."-From W. ].
Wollman & Co.'S Review.
| There is more truth than fiction
in the short sentence, referring. OF
course. to the income tax. There is
feeling now existing in Congress
that tax-exempt securities should be
cut out in the future, but there are
millions of liberty and victory notes
exempt, while practically all liberty
liberty 31as and victory notes. are
exempt, SO far as the normal tax is
concerned. In a refunding operation
n might be possible to eliminate