Evening star., 1921-02-18
PHASES0 OF FIGHT
ON PAR COLLECTION
North Carolina Banks Have
Slight Advantage-Express
!. Flotation Successful.
BY j. A. FLEMING.

BY i. A. FLEMING.
The fight for par collection of
checks in North Carolina between
state institutions and the Federal
Reserve Bank of Richmond goes
merrily on. with the state banks one
lap in the lead at this time, but with
the odds against them eventually.
The Georgia bankers who attempted
to contest par collection lost out
through their fight in the courts, and
the chances are against the North
Carolina bankers.
Under date of February Il the
Richmond Reserve Bank announces
that it's representative has informed
the bank of instances where he has
presented checks over the counter
at some OF the non-par points and "in
some cases officers of banks have at
tempted to hold the checks presented
ana declined to pay in cash or return
the checks"
This the Richmond officials regard
as a high-handed proceeding and .un-
der advice Of counsel, have instruct
ed agents and representatives to ex-
hibit the checks and demand pay
ment in money, since the law does not
require the delivery of check to
a bank until payment is received by
the person making presentation. In
other words, exhibition of a check,
with opportunity for examination, is
a legal presentation without sur
render of the check prior to receiv-
ing payment"
Checks dated prior to February S
are not covered by the injunction and
II not paid in cash will be returned
as dishonored.
Among checks that have been and
will be presented by representatives
OF the Richmond bank are checks
given to the order of various collec-
tors in payment of federal taxes, pos
slby checks payable to state au-
thoHties, and refusal to meet these
checks. when drawn against sufficient
funds either with or without ex-
amipation. will be refused at the peril
OF the payee bank. it being plain
violation cf the law.
Certificate Allotments.
The Secretary of the Treasury has
accepted bids for $132 SS6, 500 Treasury
certificates, series G1921, dated Feb
ruary Is, and redeemable July Is,
1921. Total subscriptions were for
$21S,924, 500. Ten of the twelve fed
eral reserve districts oversubscribed
their quota. The allotment for this,
the fifth regional district, was $4,222,-
900. while the subscriptions were for
s6,4o7.000. Richmond ranked ahead of
Chicago in percentage of subscrip-
tions to quota. New York led the
buying with orders for sso.745 500,
and was given an allotment of $49,-
451, 500.
A Liberty Bond Mt Par.
First-second Az liberty bonds sold
at par on the New York Stock Ex-
change yesterday.
This is the first time these bonds have
sold at par since January, 1920. when
they brought s100.S0. There are but
few of these bonds outstanding, and
they do not appear with regularity
on the sales record.
They are first 3 s, tax exempt. con-
verted into fourth loan. due 1924.
Personal Mention.
James A. Cahill, vice president of
the Commercial National Bank, leaves
tonight for Miami. Fla, for q fort
L. E. Breuninger. president of the
Citizens Savings Bank. is spending
several weeks in Florida, being ac-
companied on the trip by Mrs. Breu-
nfnger and their daughter Ruth.
Local Securities.
Action on the local security market
was not especially active, but there
was firm tone to most securities.
Washington Gas 71S per cent notes
brought 1907 and Gas shares sold at
39s..
Capital Traction, s4A A few shares
of Federal National Bank stock sold
at IFS.
Odd lots of Lanston sold at 73 and
than at "A ex. dividend. Light sales of
Mergenthaler were recorded at 121.
Southern Express q Reality.
Fairfax Harrison. president of the
6outhern railway system. said today:
THE books for subscription to the
million dollars of capital stock offered
ITO the people of the south by South
eastern Express Company were open
red yesterday morning and were closed
at night The stock was allotted pro-
portionately to all the fourteen states
the lines of the Southern railway
system and Mobile and Ohio railroad.
The reports received this morning
show oversubscription in every state.
The stock list will be made up Of the
names of at least $500 widely dis
tributed southern business men, hold
ing, on the average about forty shares
apiece. -rS
NO single subscription in excess of
100 shares was received and no Of
fcer or employe of the railroads was
permitted to participate, although
many of them, especially the en-
ployes. offered to subscribe.
This result of a test of practical
business democracy and individualism
in the south at a time of business de-
preston Is, or course, gratifying to
us, but has perhaps a larger signih-
canoe. Certainly it fully justifies our
confidence that the people Of the south
desire competition in express service
and are willing to back their desire
with their money and their support
in other respects.
The Southeastern Express Com
pany will now proceed. under the able
management OF Mr.. John B. Hocka-
day, its president, to purchase its nee
essary equipment and will begin serv-
ice at the earliest practicable moment,
(which announcement will be made"