Evening star., 1921-12-13
TREASURY CALLS
FOR S48,0Do,O(l)
To Be Paid Thursday-New
Certificate Issue Heavily
OverSubScribed.
by 1. A. FLEMING.

Secretary Mellon this morning call
ed upon all national banks holding
funds to the credit of the Treasury
arising from the sale of Treasury Ger
tificates of November l, to pay into
their respective regional reserve
banks 40 per cent of the balance of
This will call for the payment OF
some $4S 900 600. and is the heaviest
draft made on the proceeds Of the No
vember l sale.
This withdrawal of funds from the
banks will have no effect whatever on
the money market. There still remai-ls
in the banks about $74 100000 balance TO
the credit of the Treasury from the
November ] sale of certificates.
The latest offering of Treasury GER
titicateS. to be dated December Is. has
been largely oversubscribed. 1t is
understood that the allotment will be
about Cne-third of the amount OF sub
ScriptionS received.
The issues, one for six months at
AZ per cent and one for one year
at Z per cent, have been taken
largely by investors in the maturing
December Is. Of which there will
be about $40O.O00,000. At the same
time the Treasury will be called upon
to pay S14S,000.00 on account of in
tereSt on liberty DonoS ana Niciois
notes.
4 large part of the certificates
maturing may be applied to the pay
ment of the fourth and final INSTALL
ment of the 1920 income and excess
profits taxes.
bankers are somewhat surprised at
the small offering of certificates, it
being understood that the Secretary
asks for but S250.e00.000.
1t is probable. however, that he
will accept a large amount of bids.
although the rates of interest are
higher than expected at this time.
as it was generally expected that
short-term financing would be at the
inside of the November l limit. per
cent.
That the Treasury has maintained
the AZ and Az per cent rates would
seem to remove chances for further
bank rate reductions. The fact that
no long term financing was under
taken is taken to indicate that lower
rates are expected.
That the oversubscription to the
December Is issue will be SO large
as assured by 331s per cent aliott-
mentS made to local institutions, is
q further impressive evidence of the
great abundance of money seeking
Investment.
Of late the bond market has drawn
millions of investment money. and
w
old-time issues. have shown great
strength.
Money that goes into Treasury GER
tificateS may be said to be the ultra
conservative investments OF that
large class of investors who consider
safety first and returns as secondary.
Bankers Reception.
This evening at the Racquet Club
the bankers of the District of Colum
bia will receive the officials and
members of the administrative com
mittee of the American Bankers AS
The president of every local bank
that is a member of the District as
sociation has been placed on the re-
ceiving committee, with George y.
Watson as chairman.
Buffet supper will be served.
Unfortunately the Chamber of Com
merce meeting at the New Willard. with
Chairman Harding of the Federal Re-
serve Board as speaker. to be held to-
night, conflicts with the date of the
former meeting. as many Of the bankers
would like to hear Mr.. darding's ad-
dress.
Visiting bankers are simply taking
the steps necessary for reapprochefnsnt
tive and other branches and the A. b.
A., the entente cordiale having been
sadly strained during the last federal
administration.
Some ChRistmaS Savings.
The Maryland Trust Company of Bal
timore has paid out $700, 600 accumulated
under the Christmas savings club plan
New clubs are being formed by many
Baltimore and local banking institutions
for the shopping season year hence.
The Bank of Commerce and Savings
has declared it's regular semi-aiinual
dividend and the customary extra dis
tribution of l per cent, both payable to
shareholders of record December 20 OH
January L.
school Savings Committee.
Howard Moran, chairman, has called
q meeting of his committee of the Dis
trict Bankers Association at the central
bra nch of the American Security and
Trust Company. formerly Home Saw
ings Bank, Thursday afternoon at 4:l5
o'clock.
fair days record was made on the
local stock exchange, with continued
strength in evidence in stocks and
bonds. Metropolitan Railway first 5s
were higher at 93. Gas -. notes
were firm at 104, with an odd s16O
bond selling to los. Potomac Electric
IS slow, but firm at 104B.
in the stock list Capital Traction
was steady at 81. while Railway pre-
ferred showed more activity at 621s
to 63.
a small bond of the Capital Trac-
fion ComDanS > Dcr cent sold at 95