Evening star., 1921-08-25
ISSUE
ON [: N SEPTEMBER Is
Heavy Maturities at That
Time of Tax Issue-Against
i Rate Reduction.
BY L A. FLEMING.

Bankers do not look for further is
stiance Of Treasury certificates until
about the 18th Of September.
The Treasury has so far made but
three, small drafts on its most re-
Gently established credits with ma
tional banks. resulting through the
sale of certificates August 1.
Wifh September 15 the third in
stallment of income and excess prof
its taxes and surtaxes will become
que.
In anticipation Of this maturity the
Treasury Department issued and sold
some months ago $341.s6s.0 900 certif-
Another smaller loan issue will ma
ture at the same time.
1t Is probable that large certifl-
cate fotation, possibly a note issue as
well. will be made around September
Is to care for maturing certificates
and to further replenish the Treasury
against the demand that will be made
upon it.
Oppose Rate Reduction.
Some bankers hold different views
regarding the def1at1on program of the
Federal Reserve Board-and, indeed, on
he program OF lowering discount rates
at the present time-from the south and
the agricultural regions Of the west.
Melvin A. Taylor. president of the
First Trust and Savings Bank of Chi
cago. and chairman of the federal leg
lslation committee of the American
Rankers' Association, takes the posi-
tion that lowering of the rate of dis
count will check the liquidation which
is needed to clear the situation"
Continuing. Mr.. Taylor says: But
i it does. return to normal conditions
viii be delayed just that much longer.
How soon We shall return to a condi-
tion of more or less stable equilibrium
depends to some extent upon the rest
of the world. BY normal I do not
efer to the exact conditions prevailing
between income and expenditure on
|sh he part Of the individual and the
state"
Mr.. Taylor asserts that the flood of
tax-free state and municipal bonds
and of some private securities in the
same class has diverted from pro.
|ductive enterprise and the creation of
new wealth. hundreds of millions of
dollars. This diversion placed in the
hands OF public officials more wealth
than was economically wise. which in
turn encouraged reckless expenditure
which depends further development
of industry and commerce"
He holds that federal aid appro-
Iprlations are akin to tax exemption as
10 evils produced and the fallacious
reasoning on which they are. based.
proposed for aid to the railroads today,
|'nean larger degree Of federal con-
Itrol tomorrow"
on Stock Exchange List.
The New York Stock Exchange has
eliminated the Denver and Rio Grande
shares, common and preferred, from its
trading list, and the clearance COM
r,Jt hos 1Is &1I
'of the Continental Candy Corporation
.after Monday next.
The United Drug Company common
stock will be added to the clearing list
on and after Monday.
Double Holiday.
The New York Stock Exchange will
(stand adjourned from Friday night. Sep
fhe 9Th.
Local Securities.
There was the usual attendance of
brokers' on the session Of the local
stock exchange. but buyers and sellers
we're either apart in their views or
fhere were few orders either way, for
worthy of comment.
A few shares Of Capital Traction at
65A, District National Bank at ITO
and Washington Gas SIS at II COM
pleted about the smallest record of
the summer.
Columbia Grnphophone.
The New York Tribune this MORN
Ing says: Although Columbia
Graphophone, common and preferred,
declined to new low records for the
year yesterday. it was said that the
business Of the company was show
ing a gratifying recovery. Resump-
ion of dividends cannot be expected.
however. until bank loans have been
reduced. 1t was said"
This is the first ray of encourage
nent that has come to the tired
;raphophone shareholders in many
lays. 1t seemed to have some effect
bn the stock. for there was a fair
ecovery in the preferred shares and
fra in In, flo