Evening star., 1921-07-27
SUCCESS ASSURED
, CERTIFICATE SALE
Call Money in New York
41-2 Per Cent-SuppIy
Large-Notes.
BY 1. A. FLEMING.

BY 1. A. FLEMING.
, As predicted in this column. Secretary
Mellon has departed from the regular
semi-monthly Offering Of Treasury GER
tificates and has announced two issues
to be dated August 1. to an aggregate
of about $500, 100000. one maturing ir
six months and bearing 5 Y per cent in
test, and the other with one years ma
turity. at 51s per cent rate.
Bankers are confident that the sub
scriptions to these issues will be ample
certainly above the desired amount.
With the $500. 200. 900 certificate issue
the Treasury, it is believed. will be in a
position to meet any demands that may
be made upon it by the War Finance
Corporation in connection with the set.
Elements with railroads under President
Harding's plan.
August 16 s15O,O0O, 900 certificates ma.
ture. and in addition. it is expected tina,
500, 100000 will be needed for curren'
payment to railroads. under the reVoiV-
ing fund and other sections of the trans
portation act. already adjusted.
The remaining $5O,OOO.OOO plus the
Treasury cash on hand, s20O.O00.00O. il
was thought will care for current eX-
penses and any preliminary withdrawals
on account that the War Finance Cor
poration might make if its powers are
broadened by Congress, while at the
same time clearing the way for what
financing the Treasury may have to dc
should the corporation call for its tota
balance of nearly s4OO. .OO0.0 900 to be used
in making advances to railroads,
In view of the August l issues 1t was
held unlikely that another issue VIII
be forthcoming August Is. but larger
note issue is predicted for September
Every outstanding issue of Treasury
certificates is selling at slight pre-
five-sixteenths in the daily bids. while
the asking prices vary from one-eighth
to one-quarter point. The highest price
is bid for the 6s maturing in December
Of this year.
Satisfactory to Shareholders.
Evidently the outcome of the ef-
fort made by G. A. Garrett to acquire
the control of the Real Estate Title
Insurance Company on a bid of $50 a
share for 10000 shares must nave
been satisfactory to the Stockholders
in that corporation.
Probably many of the shareholders
did not know of the latent value, bu'
were familiar with the daily record or
the stock exchange, last sale, y.
and were pleased with an offer or w
Their, satisfaction was probably IN
creased by speedy information IRON
inside official sources that their hold'
ines were "worth considerably ovel
par" and by the bill Of 100 mace i"'
the stock yes .erday.
Mr.. Garrett's offer evidently uncoV'
cred this latent value.
Are Not Interested.
F. H. Smith & Co. who were men
toned in this column yesterday as De-
ing interested with a proposed ne"
$4,000 900 trust company. say that they
are not directly or indirectly inter-
ested in any such proposition.
The reports of the proposed trus'
company are just as persistent al
ever, and the northeast corner OF LOT
and ] streets is just as perslstentiy
mentioned as the site chosen Tor To-
cation.
F. w. Smith & Co. are representa-
tives of the owner of this property.
Call Money IL Per Cent.
At noon today call money loaned in
New York city at Az per cent. This
is an evidence of the plethora OF funds
and assures the placing of the August
! Treasury certificates
Interesting comment, apropos TO the
present situation in the money
Dmarket is found in the current issue
of the Commerce Monthly, issued by
the National Bank of Commerce OF
New York, as follows:
Failure to recognize the passing OF
the period of insufficient credit has
resulted from lack of recognition oi
.the fact that for a long time the
credit shortage has been apparent
rather than real. and due in large par'
to the unsatisfactory risks offered
There is now no bank credit available
for operations designed to hold prices
at fictious prices.
Orderly, organized marketing. il
fair, succeeds. but attempts to hold
prices above the levels determined by
international supply and demand are
certain eventually to fail.
American business and government
alike have kept clear of entangle-
ment of this character. but. even so
American business cannot avoid their
direct effects. ValoriZation schemes
providing for indefinite holding OF
such commodities as wool. silk, coffee
involve the purchase by American
consumers of raw materials at levels
likely to involve ultimate loss. and as
long as these plans contemplate the
maintenance of an artificial price they
cannot be diSregarded in cOnSidera-
tion of credit risks.
although occasional failure to Sc
cure desired credit has served to keeI
alive the impression there is a short
age of bank credit, the truth is that
there is now available a volume OF
credit larger than present business
demands"
Local Stocks Slow.
Not a single transaction in stocks
was made on the local Stock Ex-
change Bid and asked prices con-
tinued with small change; 100 was
bid for Real Estate Title Insurance
shares and the bid for Columbia Title
was raised from the of last week
to S.
A sale of Washington Gas notes
was reported at 1929 and one of Po-
tomac Electric general 6s at 95A.