Evening star., 1923-06-26
MONEY VERY TIGHT
IN DISTRICT BANKS
Withdrawals for Payment of
Taxes Prove Heavy Drain.
Local Financial Notes.

Banking institutions in the District
of Columbia are uncomfortably feel
ing the effects of the tight money
situation obtaining here at the pres
ent time, opinions of several repre-
sentative houses revealed this morn
ing.
1t was pointed out that due to the
; huge amounts disbursed in meeting
the semi-annual payment of District
of Columbia taxes, due in May and
November, together with the June Is
payment of income taxes, many of the
local institutions are called upon
either to refuse loans or borrow the
money from their regional member at
Richmond.
Needless to say, the latter procedure
is employed in a vast majority of the
cases.
1t was also pointed out that if this
tax money was redeposited in District
| banking institutions, as in other
parts of the country, the present
pinch would not exist. For the past
several years the local bankers as
sociation has made valiant efforts 10
have the Treasury Department revise
| its ruling, which would permit this
tax money to be restored to circula-
tion, but Secretary of the Treasury
Mellon is adamant in his insistencc
that, unlike other sections Of tn"
country, the District of Columbia tax
money belongs strictly to the govern.
! ment and should not be redeposited in
| local banks.
District of Columbia tax disburse-
ments approximate s15,0OO.o00 this
year, and 1t can be readily seen how
withdrawal of such a huge amount
| would contract the loaning capacity
of banks.
In other sections of the country
| federal reserve loans 20 memhcr
! banks have apparently passed their
peak. At any rate the rising ten,
! dency has been checked. and with :
| midsummer lull in business it would
not be surprising if present loans,
| which are relatively small, should j"
| appreciably reduced in the next two
months. Locally, the situation iS
not expected to be relieved until then
| when out-of-town Washington VIII
begin to return.
| North Americans RepoN.
Report of North American Compar"
| and subsidiaries for twelve month
| ended May 81, 1928, shows a surplu
| of s12,727.3s after taxes, interest
! and preferred dividends. but before
| depreciation. This is equivalent 70
| $3.50 share earned on 2.313.4ai
shares of outstanding common STOCK,
( and compares with S6,S96.366. which.
| computed on the basis of the present
| SO par value common stock. W.
| equivalent to s3.99 share on LIS
| 7S5 shares outstanding III the Prev
! Gus twelve months.
; Haynes to Probe Losses.
| One of the first acts of Harry
I
! Bankers Association, will be an offici@.
1 probe of losses sustained by local bank
/ ing institutions during the past year.
together with the taking of such step
ias would curtail this loss to the mini
! mum.
| During the fiscal year 1922 statistic
| show the savings banks and trust COM
panies of the District deducted $4,000
| from their net earnings of $1,64S,0O0 Or
more than 25 per cent. The sum of
! S155, 900 was charged off on account u
| loans and discounts, $4,000 on ac-
| count of bonds and securities, $1,000
| $136. 900 for miscellaneous items.
! The ratio of bank losses as compared
| with other local business is unusually
high, and Mr.. Haynes, as head of the
! association. will make a vigorous al
| tempt to equalize this difference.
New Stock Offered Here.
An offering of 10000 shares of cumu-
IdliNe anu CLASS
| stock of the johnson Educator Bis
! cult Company at $25 per share. plus
| accrued dividends, to yield per cent
! is today being made locally by Nor
gan, Livermore & Co.
| The stock is preferred as to assets.
preferred and participating as to divl-
dends and cumulative as to dividends
! of So per share per annum. 1t is call
able after May l, 1888, at $50 and ac-
crued dividends.
Official Year Book Out.
The Star office is in receipt of the
official year book of the local chapter.
American Institute of Banking. pre-
pared under the direction OF William
NJ. Rankin. jr.. its editor. The book
gives concise resume of the years
activities and is a commendable pup
licatiOn.
Eugene E. Thompson. head of Crane.
j Paris & Co. is away on u short busl-
ness trip to New York.
Trading Quiet on Exchange.
Washington Stock Exchange securi-
ties were decidedly weak in sparse
trading this morning. Railway pre-
| ferred sold to the extent of sixty
shares at 723s and TN. the trend
! being downward, while the common
! issue was, inactive, dropping, how
ever. to 81 bid and 7012 asked, as
against sales yesterday at 72l2. Fed
eral- American National Bank sold to
the extent of eighteen shares al Ia
and 1902 and Gas was weak at ~ = q.
Traction stock was traded in at ~ Is :.
| ON the investment side Of the mar
ket Traction 5sN changed hands al -
and 96%. Pepco consolidated 2s al
e71L and Railway is at I0A and 40.