Evening star., 1922-04-20
MAY MEAN LOWER
RATE OFFERING
BY I. A. FLEMING.

BY l. A. FLEMING.
Local bankers believe that the mex,
offering Of Treasury certificates will
be rendered to bankers and the pub
lie at per cent, and that the sale
will be successful, even at this low
rate.
This is the Interpretation they put
on the fact that Secretary Mellon
turned down offers of sl52.Ooo.0o9
offered by subscribers to the last
issue of 3h per cent certificates, ma
turing In six months.
Money continues to pie up in the
banks Of Washington and elsewhere
In a surprising manner. indicating
more or less plainly that general
business is being conducted along
the most conservative lines. and that
merchants do not find II necessary
to use their full credits while fol-
lowing the newly formed habit o
frequent replenishing of stocks rath-
er than Of laying in darge stocks to
be worked of more or less slowly.
The best demand for loans at this
time seems to come from real estate
interests and the allied building In
eustry. where the greatest effort IL
being made.
Efforts have been made by one or
two local bankers to place call money
here on New York collateral, but they
hesitate to break the rates, holding
for S per cent, with Az per cent TIL:
best bid.
cent is bid for call money and . pc:
cent asked.
Just what effect Treasury offer
ing on a 3 per cent basis would have
on the bond markets may be imagin-
ed when one recalls the influence eX-
erted for higher prices by the 3is
per cent certificate sale.
If 3 per cent short-term oherln;;
should be made and proved success
full. it might be that Secretary Mel
Ion would take chance on an issue
of Treasury notes one to three years
at or perhaps slightly under or ovei
per cent
Liberty issues are all close TO o.
better than par and viii probably
continue strong. unless the bonus bill
is enacted. with the chances against
this under the executive threat o.
veto unless accompanied by a sale
tax measure.
Sales Tax Not New.
Nobody thinks of associating the
sales tax with antiquity. but Repre-
sentative Isaac Bacharach of New
Jersey in talking today at TIL.
luncheon of the Washington Associa-
tion of Credit Men at the City Club
instituted by Spain in 1912 and at the
rate of ] per cent, followed up b.
more sales tax systems in more recent
years in other countries. go that today
approximately thirteen of the nationi
have sales tax systems in some form
or another, including Canada, thel
Philippines and Holland.
Mr., Bacharach voiced the opinion
that a manufacturers and whole
salere' sales tax would be the easiest
to introduce. and stated that he is ad-
vocating a tax of this nature of
per cent. which IL is estimated will
bring in about $500. 100000 in taxes.
In discussing the subject OF a sales
tax Mr.. Bacharaeh explained some OF
the different forms of this tax that
have been proposed and gave his rea-
sons for being opposed 10 most OF
them and why he favored the tax on
manufacturers and wholesalers.
Perpetual Calendar.
The National Metropolitan Bank is
handing to it's customers and friends
perpetual calendars, in neat and at.
tractive form. accompanied by loosa
leaf memorandum tablets, which will
be replaced as necessary.
A useful little souvenir.
Local Market strong.
The local security market is very
strong. but narrow. with investors
holding on tightly to their bonds and
stocks, SO much SO that steady i'm
provement In prices is shown and
gains are well held.
The volume of business is necessar
lily restricted, and trading is confined
almost exclusively to a few stocks
and bonds.
Potomac General IS are pegged at
par; Railway As were flrmer today at
20 to 70h.
Capital Traction shares moved VI
to s6A, and Railway common to 80 Il.
Theie were no other transactions.
Clearings Increasing.
Bank clearings OF New York yes
$685.. .00o. 900. as compared with the
corresponding day last year, while
Philadelphia showed gain in the
same comparison of Sl7.262.o0o.
New York bankers were somewhat
disappointed yesterday that there
was no lowering of the discoun. rate
Of the Federal Reserve Regional Bank.
Freight Car Buying.
Railroads are steadily increasing
their supply of freight cars, as shown
by the orders for the first seventeen
days in this month for 2..5lo freight
cars, with $3.50 ordered In March
1477l in February and 1860 in Jan
q
est orders now being received.
This is an indication that the rail-
roads are looking forward to better
business.
In 1921 the total number of freight
cars ordered was but 2s.a5s. which
has probably been doubled by this
time.
Bankers to Meet.
The District Bankers Association
will hold a postponed meeting next
Tuesday afternoon at o'clock az
the stock exchange rooms.
1t is expected that the Poole COM
mittee will make report at that time
on the housing proposition.
HEAVY FLOTAT|0NS