The Washington times., 1912-09-08


seeking to secure unanimity in the mat
ter Of a minimum monthly charge on
small accounts in the banks of the city,
that are an expense rather than bene-
At to the institutions that carry them,
should have been mistaken for an initia-
tive to stop interest payments on check
ing accounts.
Washington bankers are large-hearted
and generous to a fault, they carry the
burdens of many of their customers,
but any attempt to stop interest pay
ments on checking accounts by the
banks that have adopted this plan would
be next door to suicidal.
The great trust companies with their
enormous capital are on record as and
3 per cent payers on minimum monthly
balances For other banks to cut off
interest would be to lose their deposits
in short order.
Interest payment is the advertising
card of the savings banks. While all
discourage checking accounts, yet they
are frequently obliged to honor them
when presented, frequently with
warning, unless the pass book Is pre-
sented with the check. The handling
of million in savings deposits is ac-
So'hplioleu dl tltHe Oh the cost OF
handling miliio2 In commercial ac-
counts. There is but a fraction of the
bookkeeping and stationery cost.
One national bank has stood strongly
In the gap against the payment of in
terest on anything but Government de-
posits. Another, an uptown bank, will
consider the payment of interest on
checking accounts If the account has
an average balance way up in the tens
OF thousands-under no other circum-
stances. Still two more make excep-
tlonal the payment of interest but
eral.
Business man of Importance is not so
keen after interest. He frequently uses
borrowed capital and he wants the ac-
commodation more than interest. This
class of merchants understand that the
trust companies want collateral loans
The commercial banks being required
TO carry larger reserves are not in a
position TO be as generous in their in
terest as the trust and savings insttu-
tons, while more liberal in the matter
OF accommodations.
OF the SIC. .0O0, 900 individual funds in
the banks of Washington on June Il
tdate of call by the Comptroller prior
to one just made), probably $i6 900 900
draws interest from the banks in which
II is deposited.
About $26, 100000 trust company depos-
its draws per cent interest and 81
10000 tabout draws 3 per cent. Savings
bank interest varies from 3d319 and
in the case of dormant funds. as high
as per cent and national banks prob
ably pay interest on a 2a212 per cent
basis on nearly 100000
Minimum monthly balances" reduce
the aggregate payments materially, but
not far from $500 900 is paid annually
IN Washington on account of interest
on individual deposits.
In no other city in the Union of like
SIZE are the bankers as generous in
the matter of interest or in the treat
ment of small depoSitOrS; in no other
city would the bankers stand the things
that local bankers are compelled to, for
the simple reason that It is almost i'm
possible to secure unanimous action on
anything. The moment anyone starts
on reform movement of any kind
hostility is engendered.
The discussion has brought to light
| the fact that there are many men in
Washington who recognize the favors
/ or the banks in keeping their accounts
| for them and who are willing that a
small charge, say 80 cents a month
| shall he made against their accounts
| Hundreds have expressed their willing
| ness to stand this assessment, know ing
! that their accounts cannot accrue in
| any way to the revenues of the banks
| and Vet desiring the convenience of a
checking account.
Practically necessary. advisable plaus-
| tble. easily maintained in argument
the minimum monthly charge on small
accounts ought to be unanimously
adopted by the Clearing House Asso-
| Ciation-but if not. then the individual
bank will have to handle the matter
for itself. Either this or eliminate
| scores of worthless accounts.
And war has also been declared on
forgers. check raisers and impostors