The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-02-21
PHILIPPINE GOVT
BONDS HAyETAX :
EXEMPT FEATURE
Direct Federal Obligation
And Acceptable for Pos
tai Savings Funds.
OTHER LOCAL NOTES
Drury Makes Formal Denial.
District Securities Suffer
Dull Session.
OTHER LOCAL NOTES

Tossiole removal Of the tax ex-
emption privilege on future govern
mene and municipal bond issues would
create an unprecedented market for
outstanding tax, exempt bonds. The
philippine government has three Is
sues exempt from taxation by the
government OF the United States or
by the government Of the Philippines
or any part thereof.
The gold Is Of 1916. now selling
around 81 to So, to yield about 5-3s
per cent. were, authorised In amount
OF s4.ooe.ooo All at present outstsnd-
ing. They are redeemable at par
and interest December 1, 1895, or on
any interest date thereafter. The
purpose was to provide the govern
ment with funds to purchase the en-
tire capital stock of the Manila Rail-
road They are direct obligation
OF the government of the Philippine
Islands. but not a mortgage, and are
acceptable fot spgbud aepostS p9szl
savings fund deposits and by the Phil
/ ippine government for deposits for
government funds.
J Philippine government 81 per cent
public improvement bonds, due 1874.
are now selling around 104 and los.
AT which price they yield about SIS
per cent. The issue was authorized
In amount OF s1O.000.o 900 and was Of
fered at ssh last August. They are
a direct obligation of the Philippine
government. but not secured by "a
mortgage. .Ts1-EuF --v.4H "a I'D 10,
. The third issue is the Manila Port
Works and Improvement 5Iss OF 1850.
authorized and outstanding in amount
OF $4,000. 600. They are now selling
around 101 to 1903 to yield about
5.55 per cent. and are also a direct
obligation.
In connec ion with the clause,
they are a direct obligation, but not
a mortgage IL might be well to
quote the explanation given by the
Attorney Gensral Of the Upitsd States
In the case OF ne 5iss Of fsfT fhe
same clause applies to all three is
sues. II Is: --''Fflis issue and sale
OF bonds Is authorized explicitly by
the national power. and while in the
strict and legal sense the faith OF
the United States of America is not
pledge as a guaranty for the pay
ment of the loan or for the due use
of the proceeds or the observance
of the sinking fund requirements. the
entire transaction Is to be negotiat-
cd under the auspices OF the United
States of America and by its recogE'
milton and aid. There can be no
doubt. therefore. that the NATIONAL
power will take steps In all con-
tinEencies to protect the purcha sers
in good faith Of these securities"
Drury Makes Formal Denial.
Peter A. Drury. president OF the
Merchants Bank, yesterday formally
stated that the article appearing in
the press of Saturday. announcing
the appointment of Frank E. Chi
SELF as trust officer of the Merchants
Bank and Trust Company, was made
This once 1Ras rot been 'fnied a.
vet. and Mr. DrHry states when 1T
Is filled it will be by a man of legal
training.
Local Securities
Trading in Washington securities
was the dullest of the year yester-
day But four sales were recorded.
$500 Washington Railway general IS
at 81 being the only transaction in
the bond list.
In the stock list; Lapston Monotype
sold to the. extent OF 10 shares at
7O1a which repfessTits a Substantial
decline over The last previous quo
Iation. Fifteen shares Of Old Dutch
Market preferred sold at Z. and 1
share of Capital Traction changed
hands at s5%.
In the money market. 5 per cent
pas bid for s per cent funds.
Personals.
Carl Robertson KurtZ, OF Stround.
Kurtz and Company. will leave for
FIouidA the latter part of the week
for short vacation.
HIN. Nathan.-B, Scott, shairman
Of the board Of directors OF the Con-
tinentaI Trust Company. is taking an
extended vacation in Southern CALI
fornia-
War Finance Loans.
The War Finance Corporation yes
terday announced that from Febru-
airy 1S to Is, both dates inclusive.
it approved 17o, advances. aggregate
ing S4.570.00o. for agrieuitursl and
livetoek purposes.
DarinE the week ending February
IS, the corporation approved 357 ad-
vances aggregatfng S1O3O5 600