Evening star., 1922-10-09
new BOND ISSUE
WILL Be 0VERS0LD
Bankers Predict Success.
Corporations Buyers-Mer-
genthaIer Strong.
BY I. =. FLEMING.

BN i. y. FLEMlNG.
Sentiment among Washington bank
ers is unanimously favorable to the
new bond issue announced on Satur-
day night by Secretary Mellon.
They believe the demand will alb
sorb the issue with so many surplus
orders that there will be general
scaling of alotments. perhaps even
To one to four basis,
One trust company official express
ed regret that the gate had not been
kept at per cent, but at the sna, same
knows best. He is continually in
touch and knows the situation better
than any one else. 1t looks as if the
issue was another of his famous feel
ers, and he Will be satisfied with the
results"
Certainly" said the cashier of a
national bank. the loan will be a
success. The bonds run for longer
time than any of the liberty issues
and should appeal greatly to corpora
tions and to bankers generally. Our
order for s2,000.000 was placed par
tally in Richmond and part in New
York. for Richmonds allotment will
not go far.
Corporations should grab off these
bonds. which so far as they aTe con-
cerned are tax free, corporations pay
ing the one income tax, IL per cent
on gross earnings.
io"n II lopleS OF new orh says.
The banking and investment inter
ests should snap up the new bond
issue"
Every note or certificate sale that
Secretary Mellon has ordered has been
an unqualified success and there is
not the slightest indication other
than for equal good fortune with the
present issue.
Fifth Anniversary.
The Liberty National Bank was five
years of age yesterday. The celebra-
tion of the event has been postponed
for two weeks, when the officers and
directors of the institution will go
down the river to Dunbar each inyit-
ing guest to accompany him.
1t is far, long, cry from deposits
of S11,91..03. the deposits of the open
ing date; to the s2I47.2as.s1 at the
were no complimentary deposits on
the opening date-new savings ac-
counts.
Federal-American Plans.
officers and directors of the Federal
nd the American National banks will
meet in social way at dinner at
the New Willard Hotel on Wednesday
eral National Bank
On Friday evening at the Columbia
Golf Club, the entire clerical force
of the two banks so soon to be merg-
GU Will get tOSStneT IN &et-ac-
qualnted supper social.
John Poole. who will head the Fed
eral-American National. is authority
for the statement that there is a dis
tinct and positive sentiment among
The directors of both institutions for
the immediate construction of mod
ern, up-to-date banking and office
building on the present site of the
Federal National for the merged in
stitutionS
American Institute.
The first session of the season of
the Washington Chapter. A I. B., will
be held on Wednesday evening at S
O'Clock in the rooms of the District
Bankers Association. New Masonic
Temple.
W. A. Dexter. president wall pre-
side and John B. Larner, president of
the Washington Loan and Trust Com
~pany, and Joshua Evans. jr.. president
of the District Bankers Association,
will make short talks to the students.
Action I'm Railway Shares.
On today's session of the local stock
exchange Railway shares attracted
in ten-share lots OF. both the common
and preferred stock. The former
opened at So and closed at 545s. The
preferred shares were firm at rs.
Mergenthaler developed another
strong tone. and sold at 179. while
firm at S0A. Neither of these stocks
has a bond issue ahead of the stock.
and both are said to be clean and
financially strong.
In the bank stock list Union Trust
displayed special strength. selling at
137. High prices were bid for nearly
every stock on the list.
Bonds were more or less neglected.
Banks Making Investments.
Figures compiled from reports of
500 leading banks show a resumption
of investment buying for their ac-
count.
For the week ended September 81
these banks increased their holdings
of "other stocks and bonds"-that is.
investments exclusive of government
obligations-about s11.000.000. Hold
ings of government securities de-
creased about s45.OO0.000.
New York banks reduced their
holdings of government securities
$4,000 o0e during the week. and in
creased their investments in "other
stocks and bonds" $4,000, 600.
Decrease of s45.000.000 in holdings
of government obligations probably
explains the weakness in liberty
bonds in the past few days.
CorcOran Thorn on Convention.
vention of the American Bankers AS
sociation held in New York last week,
Corcoran Thorn said:
TT was all very wonderful. a great
crowd, sometimes a little tiresome.
The speech of Reginald McKenna, de-
livered on Wednesday, s,ands out of
the entire proceedings as the one
great effort of the convention.
"A scholarly English gentleman.
with broad world vision, thoroughly
schooled in finance, knowAshow to ex-
press himself and never undertakes
an address of such Importance with
out being posted to the limit. Every
one enjoyed the address. =
1T was my privilege later to be
a guest with Mr.. McKenna at a pri-
Vate dinner where he talked even
more intimately and impressed every
one with his views.
Another address that stood out to
the fore was one on Thrift. the
speaker presenting some wonderful
statistics to show thes savings of
american people, but asserted that
this was not all.
Thrift should be exerted in many
other ways than that in accommodating
money He illustrated various ways
and then gave an example, stating
that he still had twenty-five minutes
time allotted him for his talk and
that he would have that twenty-five
minutes"