Evening star., 1923-08-30
CREDIT WARNING
ISSUED BY BANK ,
Too Many Loans Are PIedg-
ing Future Income-Re-
sumo of Business in D. C.

warning that the credit resourres
OF America are being strained for un-
productive investments and that cities
ana townships are running into debt
unWlsely Is sounded by the Mechanics
ana Metals National Bank of New
York. This institution claims the
American people as A whole are nor
paying for all their current prI.
chaseS out Of current income, but are.
pIedglng future income to what cam
not now be paid for spot cash.
Inc situation in the past several
years is likened to that of 1917 and
1918, when the government was issy-
ing war bonds, only more recently
! the bonds and other securities have
been issued by private interests.
states and municipalities. The VOL
| ume of borrowing to finance curreo+
purchases and supply present vap,.
| mas been represented during the pas,
Years not alone by short-tern bor-
! rowing at the banks, but by the cr...
| tloh OF bond issues and the DRAWN.
| of mortS cages '''
Collectively the American peoor.
@ @idno gone heavily into debt tn
! statement claims. From the onarin.r
q ls22 10 July /, 1923, cighterr,
months. the grand total Of new sec1Ir-
lty issues in the United States way
| close to SS,006.000 900. There is no
compilation of mortgages, private
loans, etc.
I'm addition TO the business enter
| lriSeS, the statement continues y,
great deal of borrowing has been in
uuiSed IN by the states and minor
poiltlcal subdivision of the country
counties, township, school districts.
| etc.-thc monthly volume of sucn
borrowing have run beyond 500 900
ooo for many months, carrying the
/ grand total Of all these obligations
! 70 4 point close Of 1000 0a0. 600
Ihese loans have provided funds for ,
streets. schools, water supply, sewers.
pubIlc buildings fire apparatus, parks
| museums, bridges, fountains. StadIums
| ana monuments. The degree thai
! borrowing for unproductive purpose
| mas increased is q matter Of much
| concern; in many communities new
! debts have been increasing more
rapidly than sources of taxation"
Review of Local Business.
An interesting resume of business
| IN Washington has been received by
/ the Liberty National Bank, compiled
| from Il summary of comments hv
bankers on local business situations.
communicated to the Farmers Loan
and Trust Company of New York city,
who distributed same.
|
! tion increased $1,000 10 100000 as =
result of war activities. The end Of
! the acute housing conditions is jus.
! in sight. and there is Il tendency to-
ward decreased rentals In Washing
| ton there has been q great turnover
in bank accounts. due to the
number of those coming and going
since the war Bank deposits have
grown, and average about three times
! the deposits of 1915. Traffic conditions
n inI a tod ~ lI
! cars registered or one to every four
! Inhabitants No falling off in busi-
ness IS expected for six months or a
! year. barring the tendency TO lower
rentals and less building. The gov
ernment is making a great effort TO
economiZe.
Treasury finances are being wei
handled. looking toward reduction
of the public debt. as maturities ar
rive"
New Bond Issue in Market.
A new issue of $4,000. 900. the Mil
waukee Electric Railway and Light
Company e per cent refunding anu
first mortgage gold bonds, series {. is
being offered today by II syndicate
composed of Dillon. Read &: Co.: Har-
riS. Forbes & Co, and Spencer, TraSk
& Co. The bonds are dated June l.
| 1921. and are due September l 1853
Application will be made in due coursc
to list these bonds on the New York
Stock Exchange.
But One safe on Exchange.
The dullest session of the calendar
year ruled on the Washington Stock
Exchange this morning, when but on"
sale, made after call, was recorded.
Washington Gas 6s of 1888 sold to the
extent of $1,000 at 1912.
Bank Official Returns.
Francis c. Addison, jr. vice presi-
dent of the Security Savings and Com
mercial Bank. who has been fishing in
northwest Wisconsin, has returned to
Washington, and will resume his du-
ties at the bank on Tuesday.