Evening star., 1922-06-20
LOCAL PAYMENTS
JULY | TO Be LARGE
Estimated at S3,519,00O.
Should Help Washington
Investments.
BY I. A. FLEMING.

1t is possible that the present de-
mand for bonds on the local market
as well as for some of the better in
vestment stocks represents the, hrst
buying in reinvestment Of the mil
lions that will be disbursed in IN
terest and dividend payments and in
liquidation of claims of deposltors
against their respective institutions
for interest on the siX-month period
between January l and July !.
These two days mark the very
heaviest payment periods. Interest
and dividend payments on securities
listed on the local exchange Will not
he far from S1,269.0o0. And to tins
the income from outside investments
held by local investors and the dis-
bursements will total nearer $1,000
600 than any other round amount
Three per cent interest paid by the
savings bank. per cent by trust
companies on checking accounts, j."
per cent on savings and per cent
paid by national banks on savings
with special rates on certificates for
time deposits averaging perhaps net
ter than per cent. Will add another
SI25O 900 more to the totals. making
about S3.519.000.
1t is a fact that while money is
luaning in New York at -, and )
per cent on call local bankers are
paying per cent and sometimes
more on savings. SO far they nave
been able to maintain these rates,
even while New York prepares to
cut rates on deposit to the credit of
outside banks.
Local bankers have been able to
maintain regular interest rates on
IL ~ h.llt-
= per cent rate on loans more or less
rigidly.
With an estimate disbursement on
various accounts to the credit OF
Neutrality-suspicious. of about $3.5OU,O0u.
il is but fair to give consideration TO
local securities. Any increase i'll the
demand for local bonds or stocks
will bring higher prices. just as the
very urgent demand for liberty bonds
by investors seeking safety with IN
come is daily marking up these issues
to higher prices.
Present prices for interest and
dividends are high compared with
the low levels OF a year ago. just as
money has come down from the :
and s per cent levels of year ago
TO the l.. and per cent and per
cent rates of today.
Bonds have advanced perhaps more
than stocks. but the wise investor
may make choice on the local list of
bonds and stocks that viii give good
returns al present prices
Draws Down 6s.OOO.OOO.
Secretary Mellon notified banks
holding deposits to the credit of the
June Is Treasury certificate sale to
pay into their respective federal re-
serve regional banks S6S.00O.0oO by
Thursday of this week.
But for the wonderful ease of the
money make the heavy drafts that
the Secretary is now making might
he expected to Stiffen loan rates.
Local shares Firm.
Local stocks were very strong. with
some little hesitation to following
them into higher levels, probably re-
Spousible for the fact that business
was lighter.
capital Traction shares closed the
day at SO. their high Railway pre-
ferred at 10 was at high. Gas at JS
was high and likewise Railway pre-
ferred at I5.
American Security and Trust shares
touched 2i51s a twelVe-point gain in
I. month.
Bonds were slow. but strong. Cap
ital Traction 5s, ssk. and Railway
74I2 and 74a4.