Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-05
CAN CONCERN HEAD
OPT|M|ST ON TRADE.
Treasury Facing Financing of
Nearly Half Billion in
MaturitieS.
BY JOHN +. sINCLAIR.

business corporation which watches
certain farm crops carefully. The veg
etable crop plays very large part in
the company's earnings. In former
years when it specialized more on cans
for vegetable packs than on its grow
ing business for paint, oil and other
general lines. 1t maintained a close
survey of the canning conditions in
every State in the Union
AT the close of 1929 Continental Can
showed net earnings of nearly $9,OOO,-
000-a new high mark-equivalent after
preferred dividends to $500 a share on
its 1,725,045 shares outstanding at the
end of the year. For the year 1928 Il
earned $4.35 share on LASS, 991 shares
outstanding.
When I asked C. C. Conway. presi-
dent, his opinion of business conditions.
he said:
I'VE found that our November and
December business dropped of rather
noticeably, but by the end Of Janu-
AIRY it was coming back and our sales
now are slightly ahead of the same
period last year. We see no reason
why we should not have a normal year,
getting better as the months progress +"
This is a conservative yet optimistic
statement from one of the younger of
Americas big business leaders.
Heavy Financing Soon.
Within 80 days the United States
Treasury will have to finance maturities
of Government obligations slightly in
excess of a half billion dollars.
On March Is United States Govern
ment certificates totaling $404, 200 500
fall due and two days later 100000
600 Treasury bills will be sold
The recent sale of Treasury bills, to-
falling $50, los, 900, to the Marine Trust
Co. OF Buffalo was one small piece of
financing completed in anticipation of
the March situation.
There will be a big difference In the
interest rates on Government issues of
last year and this year. The certifi-
Gates maturing in March bear SIS per
cent interest, while the new certificates
will draw about 3H per cent
Then there will be a considerable
amount of income tax payments made
to the Government before March Is
Some Of this amount will be available
10 pay debts. So that the total amount
Of discount bills and certificates will
probably be considerably less than the
amount coming due.
This much can be said: That while
England has long made 1t q custom to
sell treasury bills at discount, only re-
Gently has the United States Treasury
done so. The experiment has worked
admirably so far and it is expected that
more of these bills will be offered as
Government commitments fall due.
Incomes Over $1,OO0,OOO
Think of four Americans during 1928
earning $6.527, $50 by their own per-
Sonal efforts.
Yet this information was brought out
at the trust conference of the American
Bankers Association In New York when
1t was revealed that each of these Amer
leans had returned incomes of over
81 ,000, 600 in Federal tax reports.
I'm 1928 540.89 individuals returned
taxable incomes 20 the Federal Govern
ment of $1,000 or more received from
salaries and commissions, or incomes
earned by their own personal service"
said Joseph S. Mccoy, United States
Government actuary Of the Treasury
Department.
IN this group 1929 returned in
comes In excess Of $4,000 for the cal
endar year 1927 and 746 returned In
comes in excess of 800 900 annually.
"Of these it is probable that in case
tates other than the proceeds from In
surance policies, and over one-haf Of
them would be residents Of New York"
New York State probably has the
largest number of estates where life
insurance constitutes the largest asset.
Many New York business men who
command large salaries spend most Of
it with the exception Of the amount
they put into life insurance. This
tendency has been growing for many
years.
Currency Issue Monopoly.
The Bank of England, unlike the
Federal Reserve Bank of New York and
other central banks of issue, Is private
bank, with a monopoly on currency
issue Many British investors are stock
holders in the Bank of England and
receive from 1t regular dividends. Many
Americans are, too. Edward Lane, pres
ident of the Atlantic National Bank OF
jacksonville (Florida's largest bank,
once told me he bought few shares
just to say that he was a stakeholder
in the Oldest bank in Europe.
OF recent years the Bank OF England
has rarely entered into the field of pri-
vate financing, although in earlier days
it did considerable amount of 1t.
Recently the Bank of England pur-
chased 250,0 shares of class B stock
of a certain partial-payment financing
company owned by the Commercial
Credit Co. of England.
This B stock has q par value of 81
and a paid-in value of 81, but 1t has
no voting rights. and the bank agreed
not to sell its stock without first offer
ing it to the directors who control the
A stock.
The London Economist, learning
with surprise" of the arrangement, says:
This new partnership is so novel an
arrangement and, If 1t is to be prece-
dent, opens up such remarkable pos
sibilities, that fuller statement Of the
relations of the bank toward this enter
prise is very desirable"
No such business relationship be-
tween commercial business and semi
governmental institution, like the Fed
eral Reserve system, would be possible
in the United States.
Banks as Administrators.
1t was not many years ago that the
family attorney usually became the adj
or executor of his clients
estate. The bank serving as such was
In the past seven years the appoint
ment of banks and trust companies as
administrators of estates has grown
with astonishing rapidity AS against
G, 900 estates so handled in this way in
1923 there were $4,000 so handled in
1929.
At the end Of June, 1929, there were
l ,734 national banks actively operating
trust departmentS-an increase of 81
per cent in three years.
In the matter of personal trusts be-
ing administered by national banks in
1929, the total was rs, 1888. an increase of
40 1886, or 191 per cent, since 1925. And
the assets of these trusts at the
end of 1929 amounted to more than
81 ,000, 100000.
Most of the larger estates in the Ma
ton are being handled in this manner
now and many of the smaller ones.
Copyright. 1890. by North American News