Evening star., 1925-01-04
By CHAs. p. sHAEFFER.


Inquiries among the many Wash
ingtonians who will share In the dis
tribution of SO per cent of the i'm
poundage OF the Potomac Electric
Power Company. aggregating $4,000
900, have developed heretofore unpub-
lished information anent this fund.
The fund is familiarly known in
financial circles as the foster child
Of Atwood NJ Fisher treasurer OF the
Washington Railway and Electric Co..
as we'll as of the Potomac Electric
Power Company. Given to his charge
in 1917. when litigation first began,
this official has carefully nursed 1t
from it's infancy until 1t has grown
into a sturdy financial giant of ap-
proximately $6.000,000 proportions.
Mr.. Fisher has been the sole GUS
todian Of this fund. He has invested
II in first -class securities, reinvested
maturing obligations, taken profits
from time to time, etc, an operation
which, IL is safe to say, has resulted
in q gross turnover of nearer $10,-
10000 than the original amount OF
the account.
Roughly. there are four classes of
securities which hold the fund Gov
ernment securities account for ap-
proximately SO per cent. or S3,o0O.Oo0
of the gross, while there is about
$l,500.0o0 invested in utility bonds.
In obligations of States and municipal
tiles is placed about 100000 of the
remainder, while first mortgage real
estate notes make up the balance. The
obligations so acquired repose in
strong boxes OF various local bank
ing institutions.
It is understood a handsome profit
has been realized on the custodian's 8
investments during the current bull
movement of the stock and bond
market.
Mr.. Fisher was acquired by the local
utility as treasurer in the early part
of 1913. being formerly connected
he spent Is years specializing in
credits and collections
Notable banking Steps I'm 1924.
The most notable change in the
banking situation, from national
angle, in the past year is in the ex-
pansion of credit by the member
banks through loans on stocks and
bonds and by purchase of securities,
according to survey issued by the
National City Bank of New York.
The impression seems to prevail
that by some kind of management on
the part of the reserve banks, to-
gether with an unusual degree OF self
control on the part of the business
public. the super-abundant gold stock
of the country has been kept In cold
storage and prevented from having
its usual effect in the expansion of
credit and rise of prices. This is only
partially true. the survey finds.
The low interest rates of the past
year have not had the effect of en-
81 IL. y
ties, and business policies in general
have been conservative throughout
the year. Notwithstanding the rise
Of farm products, the Bureau of La
bors index table OF commodity prices
shows an average of 1871 for No
vember, 1924, against 1921 In No
vember, 1929. Commercial loans of
the reporting member banks stood
at sS,369, ,000,0 900 on December 10, 1924,
against ss.150,o00,0o0 on. the cor
responding date in 1928. an increase
OF only $21s,o0o.o0o, which is less
than a years normal increase.
New Facts Revealed.
When, however, the loans of these
banks upon stocks and bonds and
their investments in securities are
examined, different situation is
revealed The total Of loans and in
yestments, according to the statement
of December IL, 1928, was $751;
3S9 900, 900, while by the statement
of December 10. 1924, 1t was $1S,-
576,0OO,000. showing an increase of
s2,lS7 900, 900. Largely as a result of
placing this additional amount of
credit in circulation, but partly as
the result of gold imports, slacken-
ing trade, etc, the deposits of these
banks increased in the year from
SIS, $40, 600, 900 to s1S. .125, 100000. More
over, it is significant that the greater
part of this expansion has occurred
since the 1st of June, last, by which
time the member banks had reduced
their redtscounts at the reserve banks