Evening star., 1921-06-29
FEDERAL DEPOSITS
AN AID TO BANKS
Secretary Mellon Leaves
$454, 900, 1000 in National
Institutions.
ny i. A. FLEMING.

Secretary Mellon has extended real
favor to the national banks of the
country in permitting them to retain
practically 70 per cent of the proceeds
Of the big note and certificate issue of
June Is.
In this way he has enabled the banks
to conserve their resources over the
July 1 period, when the enormous
semi-annual interest and dividend
payments are made
The total amount of the June Is sale
was $625.5i5.400. and after the with
drawals there remains over $454. 4.000,-
900 on deposit with the banks.
Bankers are further strong in the
opinion that there will be no federal
financing with July Is. unless per-
adventure there is need of providing
largely for the railroads of the coun-
try through some legislation to this
end or through executive action.
But small amount of Treasury
certificates will mature July Is. and
the Treasury is prepared to care for
these now.
which the government will have to
provide for. are small. so that no big
financing will be necessary until Sep
tember. at which time there will prob
ably be note issue of considerable
size and smaller issue OF Treasury
certificates.
There seems to be a good demand
for time money with s per cent freely
bid. but banks are holding for 6h
per cent.
Call loans are going at about per
cent. stiffeninE to sig per cent on gov
ernment Withdrawals of certificate
funds.
Had the entire proceeds Of the last
Joan been withdrawn from banks
rates would. in all probability. have
advanced sharply.
During the last year bank loans have
dropped about $4,000. 900. while re-
discount opera tions secured by gov
ernment paper have fallen $500. 900, 600.
There has also been decrease in
acceptances held by federal reserve
banks of 1859. $4,000.
While the country has been going
through its greatest business depres-
affairs in good order. through con-
stant insistance on moderate liquida-
tion of customers obligations.
Bank Dividends Declared.
Directors of the Continental Trust
Company have ordered the regular
quarterly dividend of IL per cent to
be paid to shareholders of record
June 80. on July l.
Washington Mechanics Savings
Bank will pay it's usual quarterly dis
tribution of 21a per cent July l.
Capital Traction Leader.
Capital Traction shares were the
leaders on today's session of the
local stock exchange. Discussion re-
EardinG the probability of lower fares
and falling off in the receipts of the
company. probably due to many peo-
pie leaving the city. brought con-
siderable selling. in small way.
most of the sales being of moderate
opening at S41s was followed by a
recovery to 81 4. dropped to 81 again
with the final transaction at S41s.
There were no transactions in other
public utility shares. which were
steady at quotations.
Continental Trust shares sold at 100
ex-dividend. while National Savings
and Trust shares brought 255.
A sale of Security Storage stock was
reported at 212.
Mergenthaler shares. 119 to 119K
Lanston, 72!s bid. stock offered at IS.
Personal Mention.
John B. Larner. president Of the
Washington Loan and Trust Company,
has gone to his summer home in
Pennsylvania He will not return for
some weeks.
Morning "Flash- News.
Northern States Power Company de-
clared regular preferred dividend of
ia per cent
Regular l per cent dividend on Hart
Shaffner and Marx.
Eureka Pipe Line reduced it's divi-
dend from SO to 81 for the three
months.
General Motors shareholders have
increased more than 100 per cent
since October 5. 1920.
May earnings of Central New
Jersey showed net operating income
increased S541.435
Philadelphia and Reading for May
net income increased $269.222