Evening star., 1921-09-21
MANY new BUYERS
FORLATE ISSUES
Bankers Report First-Time
Orders on Notes and
Certificates.
RY 1. A. FLEMIN G.

H Is
Many local banks that have not
participated in the periodical SAFE
of federal certificates and short-term
notes entered the competition 1or
the September Is notes and certin-
Gates for the first time. Several saw
I ings banks reported orders Tor, Gus
toners reaching fair proportions.
Some national banks also partici-
pated in the sale for the first time,
land these purchases, where oroe.s
were successfully placed, are an aoo-
ed evidence of the growing popu-
larity of the securities with the pun
lie.
That this familiarity will prooapiy
result in future losses of certain
Ideposits does not make much oliler-
ence right now, when the Dahhs az
tually have more money tnan luey
trade revival and an increased use
of money, the competition will De
more keenly felt. IN, =.
The Treasury Department will 9e e
called upon the 18th OF octoper "
take up S3S2.53s.O0O of maturing
certificates bearing 5A and 5h per
cent rates. 1t is not known wnetneIs I
further financing Will nave 10 pe
undertaken to care for these Ger
tificates or whether the cash on hanu fs,,
tax receipts and the sale or equip
ment notes, will be sufficient 70 re-
plenish the Treasury to meet ooiisa-
tions. 60 n,
The chances are favorable for an
issue of certificates with oeeooei ="
Or November l.
Bankers Buy Acceptnnces.
Ioc,l bankers are using the ac-
ccptance market rather freely these
DAYS, buying large amounts OF pank
acceptances as employment for tneli
surplus funds. Moreover. banks thaI
have rarely used the New YORK can
money market are sending surplus
AInds there, although the rate is 4A
and per cent, the same as acceptance
rates, Time money is higher, out
bankers are not inclined to tie 1unds
up in New York for any length of
time.
Personal Mention.
L1hn NJ. Riordan, cashier OF tine
Bank of Commerce and Savings, mas
returned from ten-day vacation al
Atlantic City.
Victor B. Deyber. president of the
Second National Bank, is again at ms
desk, ready for the increasing 1all
business. Mr.. Deyber. who is also sec
retary of the District Bankers Asso.
ciation, expects to have the book OF
the White Sulphur convention In the
hands of the members this month.
Joshua Evans. jr.. will leave on
Saturday next for the Los Angeles
convention of the A. B. A. Messrs
White and Saul. other local represen-
tatives, are on the road somewhere
between here and Los Angeles.
Not Tax Free.
Senator Penrose declares that the
new revenue bill does not propose to
entirely remove the Liberty bond
issues from all taxation, but simply
permits a consolidation of Liberty
bond exemptions up to $125.oO0 as
provided IN section 1.o10 of the
House bill.
In the District Of Columbia the tax
assessor will not permit the banks to
claim any exemption in the matter
II of gross income taxes.
Local Securities.
Business on todays session of the
local stock exchange was greatly re-
duced, only Railway General IS at
| Sa and Potomac General 6s figuring
in the bond list. while small lot
F of Gas notes sold at 104.
Stocks were entirely nominal.
Bid and asked prices did not show
|any material change.
it is announced that the Columbia
|Graphophone Company has secured
an extension until next April on It's
bank obligations. also that mer-
cliandise creditors are willing to help
the corporation along.
This will give the company the
fall, winter, Christmas and spring
business to work on for a reduction
Of obligations.
On Exchange Sterilization.
Bankers at the convention of the
American Bankers Association in Los
Angeles will listen to an able discus
sion on various ideas. that may be ad-
vanced as a panacea for the unsettled
and erratic fluctuations and depre-
Europe and other countries. compared
with the stability and character of
the American dollar. the money of the
great creditor nation, but they can
recommend no action that will change
the situation.
Conditions are what they are be-
cause of many facts, and they are not
to be emedied by theories.
London, one-time financial capital
OF The world, understands that the
sterilization Of exchange is impossi-
BILE until tho liquidation Of debts and
the return of full production, plus the
restoration of actual value back of
the paper currency.
Barclays Bank of London. one of
the few foreign Institutions that cir
cularizes the United States with its
views. has this to say in connection
with the discussion on exchange sta
bilization:-
There is no one royal and easy path
to exchange stabilization; in fact,
years will probably elapse before even
the most strenuous and well-directed
efforts on the part of each country
can restore to the complex interna-
tional financial machinery its pre-war
smoothnesg.o working. The causes
pf the dislocation have already been
repeatedlNsnd exhaustively discussed,
and there afa q serious danger that an
bther inteyhational conference, such
as that ppcposed, might result in too
much raj ance being placed upon in
ernationA Action ana too little upon
Individual Mort. Each country must, to
very lar4e extent, work out its own
BalvS53nl44r the richer nations can
bnlyN 4ssflt .the poorer by helping
he ntsto tsab emselves and by avoid
ng 8uc& obstructive actions as the
Erec36nS of tariff barriers and the
douHion of other similarly narrow
nd &ho1t- sighted policies.
0h1mportant to remember that
he Inevitable operation of economic
aw lends automatically to diminish
he 3dvantage obtained from an alb
orItbE depreciation in the external
alu8 81 a currency, since If it be-
on an effective stimulus and ex-
lortG Are thereby fncreased-then to
Ma t#e6tAnt, forces are set in motion
Ehid 8I2ust ultimately restore the
ala rs Hetween external and internal
urr 4heN values"
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