Evening star., 1921-09-17
TREASURY. GALES
FOR i S2l,9)Q,oD0
Over $50 100000 Withdrawn
nWeek-Guaranty Trust
Cleans the Slate.
BY Il A. FLEMING.

secretary Mellon inlS morning
called upon national banks having
deposits of government funds arising
from the. sale of Treasury certificates
of issue August to pay into their
respective federal reserve banks so
per cent of the balance of such funds
by Tuesday of next week.
This will call for payment of $2T,-
100000. and will leave the same
amount in the banks to the credit
of the Treasury Department.
With this payment practically $50
100000 of government deposits will
have been drawn from banks within
week. but without the slightest
stiffening in rates for none" or the
slightest effect one way or ~Se other
| on loans.
This but accentuates what has been
so patent for. months past that
money is not the ruling factor in the
prevailing dullness in business gen.
orally.
The general public is not following
the Wall street flight, much as some
interests would have one believe. 1t
is out. 1t may be interested in
| bonds. and it is surely interested in
Treasury certificates and three-year
notes..
A Sustained steady advance in
stocks, without the patent bull pool
operations of today, might get the
public back again, but the scars are
too deep to tempt in to manipulated
market.
The federal reserve regional banks
the highest reached since February
Is, 1918. The last week cash in
| creased S31 .O00, 900 and bills on hand
docreased sS4, $4,000 Loans in
che last year have decreased
$1.361.934 900.
u n..it No,
creased steadily and loans contracted
considerably.
Bankers Buy Paper.
Bankers are actually having con-
siderable trouble keeping their see
cndary reserves employed to advan-
tage. They We're unable to obtain
sufficient three-year notes to fill the
bill, and the New York market does
not offer sufficient inquiry for call
loans.
Some are buying acceptances at less
than per cent. and the trend is dis
tinctly to lower rates.
Reserve banks will not cut rates
until such time as they have paid off
their borrow owings-referring to the
Richmond bank especially.
Guaranty Trust Cleans Slate.
Announcement has been made by
the directors of the Guaranty Trust
Company that the dividend has been
reduced from 90 per cent to 12 per
cent, and that all losses arising from
unfortunate loans in South America
and Central America had been set
tied or charged off. the surplus of
the company showing a reduction of
$10,000,000 and the undivided profits
being reduced from s5,545,373 to ST.
131,46
From 1893 the Guaranty Trust
Company has paid 20 per cent share
n ND Nati Il
/ 1t has paid SEQ year since 1917
! on the $25,000,000 capitalization.
The directors decided to clean the
slate, and hereafter devote all earn
ings above IL per cent, which divi-
Edend they believe can be maintained.
to building up a. surplus and any sal
wage from the charged-off accounts
| will be placed to the same credit. 1t
was believed the drastic action, would
| quickly restore the surplus to old
| figures and that it was much better
to make a cleanup than to allow
| slow stagnation, with growth of the
institution stified-
| 1t is a daring bank official who will
| recommend a iwHte-off of 100000
Sdd Dollars; a drastic operation on a
bank, but it is sometimes necessary
and generally results in better health
| 0mcials Announced.
!, Officials tof the Banling Trust and
Mortgage Company. have been an
nounced as follows: NJ. A Winter,
| chairman, of the board of directors;
| Percy S. Foster. president. and w. H.
| Robertson, vice president and trea-
surer.
| These with A. H. Fowle, organizer
of the new trust company and presi-
dent of the Premier Finance Corpora
ton, visited Woodbridge last night and
| conferred with many of the leading
erecting a Masonic temple. with bank
ing quarters on the first floor A fur
ther conference will be held next
week.