The Washington herald., 1908-03-22

Banking in Washington has had L re-
markabIe expansion within recent years;
in fact. ever since the enactment OF the
national bank law. IN Washington about
30.0O5 regularly paid employees Of The gov
ernment live permanently. Their salaries
amount 70 about S5.500oo0 annually. This
sum Of money poured into the pockets
of the people provides the foundation for
the rapid expansion OF the city in houses
and buildings, or financial operations Of
various sorts. and is now leading to the
development OF industry and commerce.
Early efforts at banking in the Capital
and the success which attended such men
as Mr.. C0rcoran. Mr. Riggs. and others
Of the Old school or fnanciers Is part OF
the history Of the nation. which need not
be recapitulaJed here. The first national
bank was established in lS3. and was
chartered with d capital stock Of 10000.
In years time this bank reported de-
posits OF more than 100000. the govern
ment clerks Of that day and the survivors
Of the war who came 10 Washington to
embark in business pursuits. finding con-
siderable surplus money 10 lay away in
the banks The new institution natur-
ally took some business from the private
banks Of that day, but not so much as 10
embarraSs any OF them.
Four Others Take Charters.
The success of the first national bank
was 50 marked from the day OF its es-
tablishment that most Of the other large
banking houses OF the capital prepared
to take out charters under the national
banking act Before the middle Of the
year, 1855, either by direct change Of or
ganizatiOn or by conversion. five na-
tions4 banks were operating in Washing
ton.
From that time the number of national
banks has increased from fve 10 twelve.
In the intervening ysars a number OF na-
uonal banks have been organized. have
won a strong business standing. and have
been swallowed up or merged with other
institutions. The Central National Bank
last year met that fate. and by 4 SIN
gular coincidence was absorbed by the
original national bank Of Washington.
Perhaps more strictly speaking IL might
be said that the Central Bank absorbed
the older institution and took over its
assets and hOnored name. as the title OF
the new Bank OF Washington Negctia-
tons are now under way by which the
Merchants and Mechanics Savings Bank
viii absorb the Traders National Bank.
and lis charter viii be surrendered.
Banks stand Panic Well.
At the present time there are twelve
national banks. all Of which have stood
the period Of the recent financial stress
without damage or much depreciation OF
outstanding stock. Besides the national
banks. the city has I've trust companies
and thirteen private and savings institu-
tions
The resources OF all these banks are ap-
pTOximately SI7.00o0oo. The capital IN
vested in them is SlI.sOo.o0o the surplus
and undivided profits is a trihe under
S6,0oo00o, and the check deposits al the
last published bank statement were, in
round numbers. s449oGo08 Savings ac-
counts in the various institutions amount
10 S25.ooo.000.
Banking in Washington is no less profit
able than in other cities. The old and
well-established banks pay large divi-
( dends upon the capital stock. and the
earnings Of the banks here compare IA
vorably with similar institutions else
where.
some Have Built New Homes.
Several of the banks and trust COM
panies have in recent years erected large
and costly banking houses, two Of which
have occupied their new homes within a
year. One OF the notable features Of the
banking business has been the concentra-
ton Of financial institutions in Fifteenth
street northwest. near the Treasury.
where FIVE Of the national banks and
trust companies are established. with one
savings bank, two national banks. one
| private bank. and one trust company only
a square away
This gathering Of the banking houses
at the uper end Of the business section
I has given 10 Fifteenth street. between
F and II streets. a distinctively financial
aspect. while the neV bank buildings and
Office structures have given rise TO the
expression. The Wall street OF Wash
I inSton-"
The national banks OF the city maintain
the Washington Clearing House AssOcia-
tiOn. which is open on business days Its
headquarters is in the new building OF the
National Metropolitan Bank. in Fifteenth
street. special facilities for its operation
having been provided when the building
was erected Here al the banks OF the
civ cledr Entlr CneCkS. Here. as else
where. the trust companies. savings
banks and private banks clear through
some national bank belonging 20 the as
sociation. but here. as elsewhere, the
actual practice is for the messenger or
clearing official Of each bank tc so 70 the
clearing house and swap checks II is
only In the bookkeeping where the real
situation appears.
Officers OF Clearing House.
E Southland Parker. president OF the
National Metropolitan Bank is chairman
OF the Clearing House Association, and
the manager is Ezra d. Parker. The
( operations OF the clearing house are in
the control Of the executive committee.
composed OF + 5. Parker. \. B. Ruff. c.
c. Corson. ". J. Flather. and R. r.
/ Lynn.
/ The average daily clearances. at the
present time. are approximately SS500o0.
/ Last year. before the appearance Of the
/ financial furry. the daily cleaTances were
upward of 81. .oo9.00e daily. Last Deem
Der the clearances were reduced 10 about
I SS0oo00. and are now gradually working
/ to a higher figure.
/ Banking in Washington follows the
usual courses Money is loaned by ua-
4 tiOnal banks on approved collateral, and