Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-13
By I. A. FLEMING.

BY /. \. FLEMING.
Secretary Mellon. able financier
that he is, sorely disappointed a large
contingent of bankers and financial
men generally when he retired $685.
900, 900 of matured So and ga S the
other day without refunding opera
tons. and postponed further issues
until September" following his an
nouncement made last March that
further financing would be postponed
until June"
There has been no safer. more GER
tain way of making profits, always
desired than by participating in Fed
eral refunding financing, so surely
have gains resulted from each success
sive sale of certificates or notes that
bankers orders have increased with
each f1otation-with the gain more
the ultimate end than the current rate
Of interest.
Secretary Mellon has formed the
habit. through lifelong practice of
economies. when they We're necessary,
of making the refunding operations
always for amounts somewhat under
the amount of notes or certificates be-
ing retired. It's sound as a policy.
Through sinking fund and partial
retirement of certificates and notes,
every issue. either of notes. certifi-
Gates or Liberty bonds. maturing be-
fore 1852 has been scaled down more
or less Importantly.
For the current fiscal year there
have been sufficient retirements to in
dictate reduction of practically $780,
900 in the PUBLIC debt
The economy of the White House
is echoed in a most encouraging man
ner from the Treasury Building.
Coming Maturities.
September - S414,922.300 A..
Treasury notes will mature. These
must be paid while March Is. 1927,
$60S, POI, 400 4st per cent will be due.
December Is. 1927. s355. 10000
Treasury 4l2s will be due with no
further issue maturing until the
Fall of 1928 Then the third Liberty
AIS must be redeemed There are
now outstanding S2,724 .413.60O of the
original issue of $4,175.650,050 of
these bonds and then 10-year
period passes without maturitieS.
other than possible temporary financ-
ing in the interim.
1t is pointed out that Secretary
Mellon. in the settlements of foreign
OBLIGATIONS with Others, of the COM
mittee, has arranged. providing the
French settlement is given an Off
cial OK. for large annual payments
which will be a great aid In future
financing.
Easy Money Period.
For some wears money has been
easy all of the time. Some effort
was made during the recent extend :
ed bull market to charge the big
hear reaction to an advance here
or there in some Federal reserve
bank rate, but every one connected
with banks or posted on fnanclal
matters understood that there was
no actual stringency.
1t is equally true that there is at
the present time not sign or lnul-
cation of stringency anywhere IN the
near future.
The cry of tight money was used
as a scare for the effect 1t might
have in checking the big bull
market. Prices had advanced to a
noint where the big men of Wall
Street did not care to follow further
on the bull side so they turned to
tho bear side, working it to the
limit and finding it extremely profit
able.
During their operations Federal
Reserve banks were so well supplied
with assets not otherwise employed
that they were buying paper ana
Government securities in the market
freely while showing reserves around
70 per cent or better
Bonds Hold Firmly.
In periods of easy money bonds are
always more readily marketed ana at
Al
movement in the price range rarely
shows very material fluctuations.
Our larger banks generally carry
large amounts of bonds, of which a
large percentage are of Government
issues. which have proved prontaDle.
High. grade induStrialS, munlclpats,
public utilities and rail issues are ia
[ored. The market is watched daily
not as to each separate issue, but the
general market.
When anything special is noted as
to any issue attention is called there
to in market letters, but checklng
up of the list twice month Is ample
BOND investments are readily reallz-
able and these investment furnish an
excellent reserve in the event OF a
hank being heavily drawn upon Tor
any purpose.
aGovernment bonds and Treasury
notes or certificates are just the same
as cash, being preferred collateral
with the Federal Reserve banks for
discounts Immediately available.
Honoring Addison.
Last Wednesday at the City Club
some 80 bankers, presidents ana vice
presidents of Washington banks, at
tended the last session of the Lunch
Runch'' during the presidential admin
istration Of F. G. Addison, Jr., VINO
will retire at the close Of the present
week, when Howard Moran, vice
president of the American Security
and Trust Co, will succeed to the
presidency of the District Bankers
Association.
There will be no gathering this
week. as many of the bankers will be
en- route to their convention at Hot
Springs.
Every Wednesday at noon for the
last three years some 10-odd Junior
.hank=offioeast ACKNOWLEDGEMENTS