Evening star., 1921-01-16
MONEY IS IN GOOD SUPPLY
AND DISCOUNT RATES EASIER
Secretary of Treasury Recognizes Fact
With 81 Per Cent Certificate Issue.
None for Real Estate Mortgages.

= fo'ct uut ing the second week OF
the new year. nor is there anything
to encourage the belief that there
VIII be a renewed of activity One
session during the week brought out
many orders for bonds. which are
selling at prices nearer on a par with
/ the bond averages OF the big market
than usual. although there are some
80 and Ss on the local list that are
lower than the average ; and s per
cent bonds on New York stock mar
ket
Money is much easier. There has
not been a tithe OF the January dis
| bursements in this city reinvested
so far as the record of the local stock
exchange would seem to indicate, al
though this condition is not new The
outside bond market in this city is
| so active that many new and old out.
! side concerns are now competing for
this business with old-time local
houses
Clinton Bank Election.
AZ the regular meeting of the stock
holders of the Clinton Bank. Clinton.
Nd. January IL. the following di-
rectors were reelected: Guy It
Helvering. chairman OF board: Thom-
! as s. Gwynn. Wallace Pyles, John Il
/ Pyles. W. @. Dent. William T. Thorne.
Charles Fl. Gardiner and Grafton .
d. Townshend
| The following officers were re-
elected: w. Gilbert Dent. president.
William +. Penn. vice president. and
j. Frank Dent. ca shier.
| The Clinton Bank was opened for
business June last with eighteen &C
| counts and total deposits Of about
$500. 1t now has over $50 accounts
and deposits around $4,000.
| w. Gilbert Dent, the president. is a
m lAo l..
Gardiner e. Dent. Much of The banks
funds are loaned on District Of CO.
lumbia real estate.
Bankers to Meet.
The regular meeting of the District
| or Columbia Bankers Association iS
scheduled for Monday evening in the
chapter rooms 1412 T. street north
J west. Final reports of the American
| Bankers convention will be made.
| War Finance Corporation.
! Referring TO the War Finance Cor
porations reinstatement and to the
fact that its charter contains pc
culiar clause relieving the govern
ment from any responsibility for Its
acts or securities it may issue. the
Wall street Journal thus comments
J editorial1y.
lin it's present form the charter Of
! War Finance Corporation expressly
declares the United States shall not
be liable for the principal or interest
OF any bond or other obligation OF
the corporation. If the machinery OF
the concern is again started up it
may. under the supervision of the
| Secretary of the Treasury. who is
chairman of it's board, issue bonds
not to exceed six times the amount
| of it's paidin capital.
| AS the maximum paid-in capital
may reach S500.000 900. all owned by
the government. as sole stockholder.
| the new bond base for credit opera
| tions may expand to $4,000. 600. 600.
| These bond issues are A preferential
| charge on all the corporations as
sets. including necessarily all of its
| receiva bles. They may be made the
basis for reserve note circulation in
! the same way as bonds or notes of
| the United States. There may be. but
cial interest rate against reserve
notes SO issued"
| A glance at the corporations char
ter powers would satisfy his critics
that Secretary Houston had adequate
reasons to fight shy of any vigorous
financial operations under it without
| a new direct mandate from Congress.
Now that Congress has outvoted the
presidential veto. the point should be
| clarified whether the United States is
bility body polite and corporate. or
| whether, in spite of its express i'm
munity. the bonds if issued are, in
fact, obligations of the United States.
should Divest Itself OF Immunity.
Whatever bubbles were to be sat
isfied in the first instance, the cor
poration is now going concern.
with all Of the consequences involved.
Divided opinion as to its eXpediencY
! is beside the point. The government
should divest itself of an immunity
which means nothing. In the public
mind the bonds will always be obli
cations Of the United States. Nor is
| lit easy to see how a treasury can
in any other light view issues in the
custody of it's reserve bank officials
as security against the governments
own circulation.
| Should some well nigh inconceivable
happening involve the operations of
this composite enterprise in bank
ruptcy, the government would no
more repudiate its bonds than the re-
serve notes which they secured. AS
there can be no such reputation and
there has been no mental reservation
of it. why hold on to the words which
sanction it?
| Here is the section Of the charter:
Section II. That the United States
shall not be liable for the payment
Of any bond or other obligation or
the interest thereon issued or incur
red by the corporation. nor shall ii
incur any liability in respect of any
act or omission of the corporation.
AS one of the ghosts in Ruddigore
mildly says: There seems a dis
c-epancy somewhere"