The Washington times., 1905-01-01
BANK SITUATION
IN The DISTRICT
Changes and Progress III the
Year Just Closed.
NEW BANKS ORGANIZED
Prosperity Evidenced by Increased De-
posits-Large and Handsome Build
ings in Course of Erection.

tPrepared by Member of the Washington
bankers Association)
The national banks of Washington
have been conspicuous in the years
progress TO an extent not equaled in the
last decade Resources have been sub
stantially increased; more than three
quarters of a million dollars have been
added to the capital employed, and sur
plus funds have grown gingly
Prosperity is recorded and the proven
biai conservatism OF the communit5
maintained.
Increase of Deposits.
The Withdrawal of Government de-
posits left no gap. since individual de-
posifs increased in slightly larger ra-
tic than was necessary to offset the
Treasury's needs
The total loans have decreased during
the year, but this item owes its decrease
to the fact that While money was stub
bornly held at ~ per cent on call in
Washington similar accommodations
were to be had in the larger cities at .
to S1s per cent. Brokers especially
availed themselves of this opportunity
| to establish banking connections else
where, New York in particular.
New Confidence Inspired.
| The banks have numerous reasons in
support of their position, and the de-
| fiection OF business has not materially
reduced their income. The net result d
| the years business must inspire renewed
confidence IN the soul-dness of The hnan-
cial situation and in the correctness of
! local methods.
| The Waggaman failure has left Il
scar here and there. but fortunately for
deposittrs and stockholders ample pro-
vision met the emergency and no hank
ing institution was inconrenienced.
Invasion of Foreign Capital.
| The most radical changes of the year
were due TO the midsummer invasion of
the BostoE- Buffalo interests and their
purchases of banking control, their
| trGnsitory tenure, ard the final profit
making transactions at local expense
! The dignity cf banking was forgotten
| and the barter and sale tactics of the
old-elothes merchant neld brief sway
! 1r October the Citizens National Bank
was given over 10 the control of the
Boston interests at SZ70 per share, and
| a merger with the National Metropoli-
tan Bank followed within a brief pc
| riod- The new stock sold around $3.50
| per share for few days and later the
] Boston interests sold their holdings to a
1 few gentlemen connected with the Ma
/ tionat Safe Deposit. Savings and Trust
Company at sSs5 per share
Returned to Local Control.
| The last transaction brought the
merged bank back into local control.
and gave 1t an alliance with a trust
| company, in imitation of the Riggs Ma
| .ional Banks profitable rela tionshin
with the American Security and Trust
Company. The advantages of having a
rational bank and a trust company under
/ the same management may consequent
| ly be accepted as having been demon
strated during the year
| The MetropCntan-Citizens Bank will
| build a handsome office building on the
| site OF the old Metropolitan Bank. oc-
| cupying the first floor for its counting
rooms. and equipping the balance of the
nuilding for general office needs.
/ The Traders National Bank was
! bought and sold by the Boston interests
ana closes the year under its old man
| agement A savings bank department
| has been added TO this institution which
| viii serve 70 mark its second start as n
! local enterprise.
Origin Of Commercial Bank.
| AS a direct result of the Sudden
| changes in ownership mentioned a feel
| Ing of pronounced uncertainty was in
| spircd among clerks and depositors in
| the old banks. The lack of anv knowI-
! edge as to the intentions and plans of
! the new interests resulted in arousinp.
| an aggressive hcme-ruIe spirit. Two
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