Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-31
CITY BANK DEPOSITS
REVIEW OF FINANCIAL CONDI-
TONS THE PAST YEAR.
Growth of Business and Increase in
Investments - The Savings
Institu tons.

The changes of the past twelve months in
financial Washington are of such a char
acter as to be scarcely realized or appre-
ciated. There has been nothing striking Or
unusual in the developments of that pc
Rod. What has taken place in the way
of expansion and increase has been in the
ordinary course of things, and so gradual
shat particular attention has at no time
been drawn to the subject. Those in charge
OF the banks and trust companies have, of
course been aware of the ready market
for money and the improved conditions
that exist here in that respect.
In fact this latter condition has led to
the increase that has been made from time
to time in the capitalization of the banks.
1t was found that the requirements of bus
mess in this city have outgrown the pro-
vision of the national banking law which
limits the loaning of the banks money to
one individual in excess of 10 per cent of
the capital stock of the loaning bank. In
the case of banks having capital of
S200,000 the largest sum that could be OBJ
tanned by any one individual, if the law
was not evaded, was $50, 900. The CONNER
cial needs OF tine city nave evidently out
grown such limitation upon its activities,
and hence the movement which took place
to a considerable extent during the year
that resulted in the increase in the capital
stock of several banks.
Growth in Deposits.
The growth in the banking deposits Of
the city continued to be one of the ele-
ments in the banking business during the
past year, and in addition to that a very
successful effort was made to bring money
where it would be available for the use Of
the community, funds that had to a large
extent heretofore not been placed in in
stitutionS of deposit. This was brought
n in ha1a ly-
and by adding to some of the existing
banks a savings department The increase
in the number of savings banks and also
IN the amount of money that is placed with
such institutions is a feature of the years
business that may be looked upon as no.
table in development of financial Wash
ington.
In thus adding to the banking funds of
the city, as the figures show has been
done, the question naturally arises, How
has this money been employed? The answer
to such a question brings out what is per-
bapS the important phase of the entire
years history in the local financial world.
The enlarged capital has been in use, and
to larger degree than ever before in the
business of the city. There has been no
need Cor bankers to loan their money TO
New York banks, getting from them
merely nominal rate of interest because of
lack of use here.
Needs of Business.
The needs of local business men to meet
the increasing demands of their customers
has made it necessary for them TO employ
more capital and they have secured their
accommodations from the local banks The
various enterprises which have been car
led on, notably in the way of new build
ings which has resulted in the expenditure
of more money for such purposes during
the past year than for any previous year,
nave been financed by local capital
The day OF getting money elsewhere has
practically gone anc the number of loans
placed here by outside corporations and In
diyiduals is not what 1t used to be, and in
fact such transactions are very unusual
At the same time the low rate of interest
has shown the influence of the rise In value
of realty and and AZ per cent money has
not been uncommon, although during the
latter portion of the year, owing to causes
which were general, the money rate on real
estate loans stiffened somewhat.
Another source of increasing business on
the part of institutions that have money to
loan was found in the dealing in local Sc
curities that has come to interest a larger
number of people than ever before. The
investment character of this class of Sc
curities has been recognized and not only
that, has been acted upon SO that to a
considerable extent the result has been the
withdrawal of a large proportion of the is
sues from the active market.
Future Of the City.
STILL as the belief In the future of the city
and the steady growth of Its resources has
come to be realized more and more clearly.