Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-04-24
BOND RECOvER|ES I
HELP TO BANKERS
One Local Company Shows
Actual Gain of $450,000.
How Liberties Advanced.
By I. A. FLEMING.

The total resources of both state
| and national banks have been greatly
| enhanced during the last few months
by the enormous added value OF
stocks and bonds, more especially OF
/, bonds. as a result OF The steady Up
ward movement in the bond market
of the last six months. in sharp con-
trast with the weakening, declining
market incident 10 the rush TO ca.
in on securities during the closing
j months OF last year.
Corporations needing money thrc"
overheard their bonds, liberties anD
F., other goy-rnIIrIi, securities as We'll
, railroad and Industrial securities.
! Time AMI again bankers have cdIlcl
! II bond experts TO mark down the
! carrying prices Of bonds on ii level
i with market values, each operation
4; resulting IA heavy charse-oifs. Lib
erty bonds were generally carried Oh
lace valuation. tlis being permissi-
/ bic.
The tide has turned. The head Of
a large local trust company made
! the statement this morning that
| based on April 20 valuation. the CON
panys holdings Of bonds had in
creased i'll valuation from the last
! write-or by $4,000.
The bonds have not been marked
up as yet but are still being carried
on the low basis and adding TO value
era of easy money is sure to last
throughout the summer. and that in
itself seems to be guaranty on the
| price Of bonds.
at premium, and bankers beliey.
that a short-term issue at less than
~ per cent interest would readily
sell.
Rates on government paper hay"
reached the point where the publ
has been weaned from this class O.
Investments. The demand so long d
the ra:eS we're maintained between
and : pr cent was very urgent froA
small investors and from large buyer
/; az wen.
The last issue OF 81: per cen. 81
month certificates were practical.
. taken by bankers. One local institG
7; ton. always a big buyer of certificate
small investors, and they also repor
ed the absence of one big buyer. wit.
! the usual order for 100000.
/ Rates on special savings .depos,;
| will give a better return than tn
low government rate.
With one institution showing such
a large recovery il is not too much
! to estimate the recovery of the othrr
/ banks. trust companies and saving
| institutions at over s4.50o.00o, an liter
, Of great value 10 the local fraternity,
| Local Securities Slow.
1 IfdClnS on the local STOCK G3CHdEs
/ was limited to q few Issues of bonds.
| the debenture IS of the Potomac Eiec-
trio Company being the most activ"
at 100. with the final transaction al
| 1905, a new high.
| The general mortgage 6s OF the
same company brought par.
| The bid price on Capital Traction
shares was 9s, and the asked 100.
| Most OF the bid and asked price
were well maintained.
Action in Liberty Bonds.
(. Between the low prices of liberty
bonds of all issues reached in 1924.
. around June 10. when the entire mar
ket was near the low point. up to the
! recent highs. liberty bonds have re
! covered 81, 251.s53, 900 of their actual
/ valuation.
| For a time corporations were given
the credit of making millions through
| acquiring liberties, but the great bulk
OF corporate holding went on the
market in 1921 in order to furnish
! the cash that the banks would not
/ lend and to help in carrying over the
: inflated inventories left on hand when
| the buyers strike SO suddenly de-
7. veloped.