Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-21
BANKS EXPANSION
PLANS ANNOUNCED
Financial Circles Interested
in Chase Deal With New
Orleans Company.

NEW 1SkSAp 1SOLuaLJ &A.EAhCA
lean banking leaders are interested IN
the announcement that the Chase Ma
tional Bank Of New York has become
actively associated with the Canal
Bank & Trust Co. of New Orleans, and
that Oliver C. Lucas. now vice presi-
dent of the Chase National Bank, will
become president, while George Cham
pion, also Of the Chase National, will
be made a vice president Of the New
Orleans bank
Other New Workers appointed on the
board Of directors are Clarkson Potter
of Hayden, Stone & Co. and z. Carl
ton Granbery Of Harris, Forbes & Co.
While the Chase, which Is the worlds
largest commercial bank, acquired q
subtantial block of stock In the New
pected that 1t would take such a COM
handing position later. The Canal
Bank & Trust Co.. at the present time,
has a capital and surplus Of approx
mately Sill 900, 900. Its capital will be
increased by 100000 making it the
largest banking institution in the
South.
Has the Chase National decided on .
program OF national expansion? This
latest move would indicate that it has.
Often, however, surface news does
not tell the real story. It is well
known that Chase ofiicials have been
opposed to branch banking. But to
control various banks in leading COM
mercial centers of the Nation is some
thing else again.
No one seems to be able to tell what
latest Chase move only puzzles bank
ing leaders the more.
New York City Finances.
Officials in charge of the finances of
New York City have acted cleverly.
Ihey Will of1er Az per cent bonds,
totalling $100,000,00 on March 5 to
complete this years long-term financ-
ing before the Federal Government gets
into action to provide for its current
refunding and the soldiers bonus loans.
This issue Of bonds by New York Is
the largest piece Of long-term financing
ever done by the city. 1t will provide
$60,000,000 for rapid transit purposes.
SIS 100000 for schools, $4,000, 900 for
hospitals and docks, and IS ,O00, 900 for
other purposes.
The city still has a debt limit mar
gin Of about $350,000,0 0o Last July
it borrowed $3.50, 000, 900 for four months
| at ga per cent interest from j. p. Nor
gan & Co., the Chase National Bank,
the National City Bank and Barr Bros.
& Co. But this was short-time fnanc-
ing.
The new issue will mature serially
from l to so years.
Automobile Industry.
No figures are more eagerly watched
week by week than those Of the auto
mobile industry. This young giant in
dustry is the largest in America and
consumes more goods than any other.
The 1880 figures showed that the in
dustry consumed 50 per cent Of the
rubber used in the entire country, IS
per cent of the plate glass output, Is
per cent of the iron and steel. II per
cent of the copper, Is per cent Of the
lumber, "a per cent of the lead and 30
per cent Of the gasoline.
1t is also the biggest purchaser Of
cotton fabrics, about zoe, 0O0, 900 pounds
annually. 1t is the backbone Of the
railroad trade, for 1t shipped 3,0S0,0
carloads Of freight on American rail-
roads last year.
And it is the largest employer of
labor, probably 100000 workers being
employed, directly and indirectly.
While most automobile executives
hope for production of 1000, 900 cars
in 1881, they will be well satisfied with
an output of 100000.
Canadian Tariffs.
Canada is continuing to pile more
action yesterday in raising the tariff on
American automobiles-an average Of
Is per cent-meanS that a car selling
Tor 5000 in the United States will be
increased in price by about $50 in the
Canadian market
The tariff schedule varies with the
price Of the car. A car priced at 81, 900
Is increased by about SIT, while q car
Tor $1,000 is increased by about 1852.
r RVrKN0on mi nf
revenue, however, has assured the
Canadian people that in no event will
the purchase price of Canadian cars
be increased by this latest action, It
is merely another step to protect further
the Canadian home industry.
What effect will 1t have on American
car imports? 1t will have a tendency
to diminish the number of cars going
into Canada directly from the United
States. But it will not affect the larger
companies like General Motors and
Ford, both Of which have large factories
IN Canada, and thus share in any bene-
hts that may accrue from this latest
decision.
New York Tax Rate.
How do New York City taxes compare
with other cities? Controller Berry,s
estimate on New York City's basic tax
rate for 1881 is $2.57 on each $500 Of
assessed valuation.
1t is a very difficult matter to esti-
mate because of the different practices
IN asseing taxable property. For ex-
ample, taxable property is assessed on
the basis of from 80 per cent to 100
per cent of real value. Hence accurate
comparison is impossible.
But on the face of the figures cities
that have higher tax rate than New
York are Boston, with $500 per 500:
Philadelphia. $2.77; Cleveland, $2.73;
Chicago, 1919; st. Louis. $2.7l; San
Francisco, S4O4
Cities that have a lower tax rate
than New York are Baltimore, $2.35;
pittsburgh, $2.55; Cincinnati, 1926, and
Detroit, $2.11.
Mexican Moratorium.
Under the latest arrangement worked
out with the Lamont committee of
bankers, Mexico will get another breath
ing Spell-a moratorium of two years
on the direct foreign debt and the
National Railways debt.
MeXico's adverse trade balance has
helped to aggravate the difficult situa-
ton. This In turn has been very largely
due to the drop in silver prices. The
recent appointment of an Exchange
Control Commission by the Mexican
government Is expected to prevent the
withdrawal of gold from that country.
Latest reports indicate that Mexico's
custom receipts for January were about
40 per cent lower than for December.
(Copyright, 1881 by North American News