Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-09-06
FEDERAL FINANCING
FOR THIS MONTH
Bankers Look for Long, Term
Bend Issue-Favor Par
Collections.
BY I. A. FLEMING.

Secretary Mellon is expected to an
nounce within the next day or two,
Treasury plans for financing. to be
undertaken on the 18th instant. Large
payments are due for the date named
and the general opinion among bank
ers favors the theory that some long
term financing might be undertaken.
Bankers do not believe that a more
opportune time for long term flo
tation, say at Az or 4S per cent,
will be found. Money is about at it's
low point and. while there is small
chance of any increase in rates in the
near future. there is also smaller
chance for any further reductions.
1t is doubtful If any f1otation under
Al per cent could be f1oated at par.
this being about the levil of the
liberties at this time.
Plans might contemplate an ex-
change for victories, as many hold
ers of these notes might be tempted
to acquire long-term bonds in eX-
change for the notes, which, because
of their approaching maturity, have
but slight margin over the liberties
other than the tax-free 312s.
1t is likely that many conservative
investors might be tempted by long
term bonds, while bankers would use
them for employment of surplus
funds, although just at this time
there is little stiffening of rates in
the call money market, but 1t is not
likely to be more than temporary
affair, as the federal reserve banks
are loaded with surplus cash.
New Finance Company.
James T. Lloyd. former representa-
tive from Missouri: will head the
Finance and Credit Corporation. capt.
tai 100000.
Frank E. Ghisselli, an officer of the
Merchants Bank and Trust Com
pany, will be treasurer of the new
corporation, while retaining his posi-
ton with the Merchants.
Quite number of prominent BUSH
ness men are on the directory of the
corporation.
Mr. Lloyd's connection here prob
ably marks the formal passing of the
proposed Connecticut Avenue Saw
ings Bank.
Favor Par Check Collections.
The Chamber of Commerce of the
United States has just received the re-
port of special committee appointed
TO study the par collection system of the
federal reserve banks, with a view Of
answering the question whether collec-
ton of checks at par should be made
universal practice. Not only did the
committee study the proposition, but
1t was submitted to vote Of 1.400 busi
ness institutions.
Par collection is the desire of business
men the country over. and this was
borne out by the referendum.
The verdict was that the practice of
some banks to charge 1-8 to lilo of l
per cent collection of checks in remit
ting to reserve banks should be diScon-
tinued.
The committee showed that Ito of
/ per cent on all collections for the
year 1920 by the federal reserve
as the banks handled $751;. 200. 900. 900
at par. Federal reserve banks will
not accept checks except when paid
at par.
The committee agree that this
matter should be settled as soon as
possible and has little fear that the
laws passed by six states in an eff
fort to support non-member banks
in collection of exchange, will be
pushed by the legislators of other
states or can have any considerable
effect.
IF par remittance can not be made
by universal practice, the committee
recommends that it be made COM
pulsory for all banks, by affirmative
and adequate enactment by Con-
gress"
James s. Peters, a banker from
Georgia. dissented. On the commit
lee there was merchant from LOUIS
willie, a planter from Colfax, La; a
Baltimore economist and other prom
inent bankers and business men.
Local Securities.
Trading on the local stock ex-
change was decidedly active. More
strength was shown in the Washing
ton Railway shares, the preferred
selling a little higher. Capital Trac-
ton sold only in odd lots at 1O3 to
1O2A.
Washington Gas was decidedly
strong, topping 81 after opening at
6oa4.
Lanston sold more freely. but at 80.
Capital Traction SIS were active at
es1s; Gas SIS at 94h and Potomac
Electric first IS at 81.
Personal Mention.
Charles ]. Bell, president Of the
American Security and Trust Company,
has returned from a prolonged vacation
that took him to Canada, Newfound-
land and many points in northern
New York.
when Mr. Bell Is on a vacation, he
seeks the finny tribe, from the brook
trout to the whales of the cold waters
of the north seas.
Ask him to tell you of the big one
that got away. much to his great de-
light, Mr. Bells and probably the
whales. too.
Corcoran Thorn, vice president of
the American Security and Trust Com
pany, has returned from shady walks
and dells, etc. In Massachusetts, and
New Hampshire.