The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-12-26
Several Institutions Increase
Annual Rare Following
Prosperous Year.
S747,O25 IN DIVIDENDS
TO BE DISTRIBUTED
Beginning of New Year Will Find
Big Gains Made in Prices
of Stock.
By I. A. FLEMING.

l. n j.
Washington banks and bankers have
enjoyed most prosperous year. Dur
ing the first six months Of 1909 the
banks were not able to lend their funds
20 as good advantage as they would
have liked, but the last six months Of
the year found a material Improvement
in the demand, and an appreciable ad-
vance in rates on loans, so that the
year averaged we'll
A number of the fiscal institutions
have increased their capital stock or
will do so at the January meeting Of
shareholders. Three new banks have
entered the field, and all appear to
be making good headway. This list
includes the District National. the
Fark Savings, and the Provident Saw
ings.
Some banks have decided TO pay
their shareholders larger annual dis
tributions, and others will follow
Probably the best commentary on the
successful banking industry in Wash
ington 's found In the steadily in
creasing demand for bank shares and
the sharp advances in prices. The
average was about SO a share. while
in the case of the American Security
and True there was a S45 a share ad-
vance The Commercial National ad-
vanced SIS, and the Union Trust S19.
the Riggs National s25, the National
City $50, and the United States Trust
$50 a share.
The Merchants and Mechanics gain
ed F15. These figures are based on
the bid prices or a year ago and last
Friday on the local Exchange.
Reasons For Gains.
Where the big gains have been
made there was a special reason. The
American Security and Trust Com
pany have increased their dividend
from an to 10 per cent basis. The
United States Trust has gone on
per cert basis. The Riggs National
has almost reached the mark set for
surplus limit, and thereafter the div-
dend payments will be materially
increased.
All bank shares. without exception.
are selling far above their book value.
and in this respect the confidence Of
investors IS emphatica,!y shown. The
dividend, plus confidence and an as
surance Of safety makes the national
banks. savings banks. and trust com
panies shares attractive Investments
yield or return on investment being
made Of secondary consideration TO
safety and prospective Increases in val
ues- Tbs is also true Of other invest
ments in public utilities. etc.
Washington is n peculiar city in r-.7re
ways than one. Il IS a city Of the very
poor, a city Of wage earners, a cfcv of
very rich and Of medium well-to-do. II
Is city where the people who can
leave their business and those who have
no business to leave usually 20 out Of
town two or three months I'm every
year, spending their money elsewhere.
IL is city where 100000 a month IS
paid out to wage earners by the United
States Government, and this vast SUM
coming out Of the Treasury adds to the
deposits or fhe banks materially. and
TO the prosperity and buying power OF
the people.
Washington Capital
The banking capital OF Was. ington is
about $l5.OO0.0Oo; according TO the re-
ports OF the Comptroller Of the Cur
rency, the deposits Of individuals, group
ed with payments to building and loan
associations, 81, 45l,152, and the assets
S113. .7OiO6S
IL II d Eoou nome loF savings oankSs
despite the fact that 1T is an expensive
city to live in-despite the number Of
the city's poor
II Is a good city for trust COMPARES
largely because Of the enOTmaus ac,lv-
ity in real estate and investments, and
because they also get their share Of
general deposits.
tt is a fine city for national banks
because of the ,,nusfiaIIy larra nun, her
OF mercantile houses, commercial inter-
Continued Oh Paee Thirteen)