Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-31
REALTY AND FINANCE
MR.. @. J. BELLS VIEWS OF DIS
TRICT DEVELOPMENT.

MIR. c. ]. Bell, president of the American
Security and Trust Company, speaking of
District development along commercial
lines, says:
Much of the local realty, financial and
commercial development during the last fif-
teen years has been due to the assistance
extended by our trust companies to the
business men OF Washington Prior to the
organization of the American Security and
Trust Company in 1890 the city's growth
was greatly retarded by the want of suffi-
cent banking capital. A careful study will
show that one of our national banks has
now on deposit nearly as much as had ali
the national banks fifteen years ago.
Their facilities Were then so limited both
IN resources and banking restrictions that
little or no help was obtainable for build
ing purposes and general city improve
TentS. With the organization of our trust
companies a gradual improvement was no.
1ceable. For with large means at their
disposal many real estate transactions in
vclving large sums of money were made
possible. These companies have also given
great assistance in various other improve
ments which were absolutely essential for
the city's growth. The fact that our trust
companies were loaning large amounts of
money on local realty, which proved to be
such safe investments. resulted in attract
ing to Washington large sums for invest
ment purposes which would probably not
otherwise have sought the local field.
Previous to their organization most of the
money for building purposes came from
private sources. The result of that method
was that loans We're not easily obtainab.e
and the interest rates and commissions
We're oftentimes eXcessiye. Under the sys-
tenn now prevailing these companies have
gathered together millions of dollars which
are now available for loaning purposes at
reasonable rate of interest. The proba-
bilities are, however. that we will not wit
ness much lower rate of interest for real
estate loans in the immediate future, but
will find on the other hand that funds will
continue to flow into our trust companies
in sums sufficient to meet the rapid de-
velopment of the city. 1t Is gratifying to
know that outside capital has become so
largely interested in the capital city, and
especially In several of our large financial
absolute confidence in the financial and
commercial development of Washington
Since the facilities and safety of these
companies have become better understood
by the community their resources have
largely increased, and consequently we find
them at nearly all times with ample loan
ing funds for all legitimate needs
During the last decennial period there has
been a gradual shifting of loanable funds
to Washington. Notwithstanding the bid
ding for first-class real estate loans by
large out-of-town institutions our trust
companies have been quite able to controi
the local situation. This condition of af-
fairs proves that Washington is not de-
pendent. but to a large extent a growing
independent financial center. l have been
a firm believer in the growth of this city
and my observation since the organization
of this company has thoroughly convinced
me that our city is only In its infancy and
that as local capital becomes more penti-
full it will seek many new outlets, all OF
which must further contribute to the dnan-
cial growth of our national capital.