Evening star., 1921-06-22
SECRETARY MELLON
TESTS THE MARKET
Second National Bank De-
clareS Extra Dividend.
Bankers Meeting.
BY I. A. FLEMING.

A new question to be answered by
the national banks OF the country to
the statistical department Of their re-
spectiye regional reserve banks sug-
rests tnat Secretary Mellon desires to
"feel the public pulse" with a view of
sensing the probabilities OF success
for a future note issue. perhaps FOR
more extended term than the last.
which was for three years. and for a
larger amount.
Each week the national banks send
to their regional reserve banks full
report of conditions as to loans and
discounts. secured by government
ment bonds owned; all other stocks
and bonds owned. cash in vault. etc:
including real estate. the character OF
deposits. etc.
To this formula has now been added
another. asking national banks 10
state weekly the amount OF their
holdings Of short-term notes recently
issued.
The amount of such short-term
notes purchased is, Of course. known
week witnesses a decrease OF such
holdings 1t will. apparently. indicate
the absorption OF the notes by the
general public. the Secretary OF the
be in possession Of the information
desired.
1t goes almost without saying that
the sale has been most successful !:
that another block of bonds would
be taken at the same rate or even at
a slight concession.
These short-term notes are more
desirable for investment II held by
the banks themselves than the call
money market at the present rate.
also moro desirable than acceptanceS
at their going rate.
A junior bank official made the
statement this morning that: I've
have people coming in every day try
ing to buy three-year notes from us.
We have taken care OF those who
placed their orders when the issue
was announced and Of some of our
other customers, but we now refuse to
sirable from every standpoint: to hold.
keeping the funds of the government
that we hold invested at a good rate:
TO keep as reserves employed and for
borrowing purposes. If 1t should be
necessary
Bankers themselves feel that Secre-
tary MELONS test Of the market for
government securities has been en-
tirely satisfactory. With call money
at and in the open market lower. the
government should be able to cut it's
last rate and sell a large block of
notes.
Bankers Meeting.
The District Bankers Association
will hold it's first meeting since the
convention this afternoon at the
Stock Exchange rooms. 1t is Presi-
dent Larner's idea to bring up for
at the convention and to appoint COM
mittees to get under way projects that
may meet with the approval of the as
sociation.
The proposed building project will
be discussed. 1t is understood that the
Clearing House Association is favor
ably impressed with the proposition.
Discussion will certainly attend any
attempt to recommend a clearing
house bank examiner and it will
jects which r. N. Harper referred
without unanimity Of action"
Extra Dividend Declared.
Stockholders of the Second National
Bank will be asreeably surprised
when they learn of the action of their
directors in declaring the regular
plus an extra distribution of 1 per
cent. both payable July 1 to stock
holders of record June 80.
1t has been the practice for the
directors of the bank to make the
declaration after the half-year. but
that the payment with the end of
the period has been ordered.
This sign Of progress in the 7th
street district is encouraging, a dis
tinct evidence of the success of the
management of the recently elected
president of the institution. Victor 3.
Deyber.
Acknowledges Able Efforts.
George o. Watson, Victor B. Deyber.
Joshua Evans. jr., w. w. Spaid, Harry
Haynes and other young bankers who
were responsible very largely in max
ing the recent White Sulphur Springs
convention 4 complete success, re-
ceived acknowledgment of their serv-
ices with sincere thanks for the same
from R N. Harper, former president
of the association.
Dividend Declared.
Firemen'S Insurance Company has
declared a semi-annual dividend of 3
per cent, payable July /, books being
closed from June "a to July 1.
Local Securities.
Local stocks did not attract much at
tention on today's session of the local
exchange. Capital Traction led in
trading, with the price Sc, while lit
tie Railway preferred brought 60.
Lanston was soft, declining to 73k
to 70, which was the bid price at the
closing.
In the bond section, Capital Traction
IS brought S7h and Potomac general