The Washington herald., 1912-10-30
Local Financial Matters.
rLA a. rLEyaGNa.


~ I. a. yLE1k1N0.
writing under the name 81. t." .
correspondent asks whefher there v z
provision for the Incorporation OF sav-
ings banks in the District. and then ad-
mits that he knows of such hw' ~
there il one hank. the East Washington
Savings Bank. that 10 Incorporated un-
der It.
Continuing. ~. T." seeks information
A to why savings banks should incof-
porate under the charters OF vanons
States, West Virginia. Virginia. Afisons.
&c, with the added information tnat
New England promoters must organixe
under the laws Of their state or oSA'es'
no matter how drastic.
He asks: "In the event OF failure.
would the liquidation have to Dc maae
. in the State giving the Charter!
there any law as to the kind OF bonds
they buy?"
These questions came at an opportune
time, Immediately following long ana
interesting debate at the Bankers AZ
sociatiop on q proposed measure to oe
introduced into Congress for q Feoefsi
incorporation act.
BY the action of the District law saw
inEs banks are not permitted to. do
commercial business. Many OF the pres
ent savings banks combine commercial
and savings business. although generally
Keeping the two separate. The Distr1ct
Code does not provide for q reserve
fund, nor does Il specify as to invest
ments that may be purchased with a
banks deposits.
There is another provision, the double
liability Of shareholders to depositors
The Limitation of the board Of direct
ors to fifteen members was the kernel
in the nut that drove the new North
Capitol Savings Bank to Arizona Tor q
charter With young and growing banks
the stronger the board Of directors,
financially and numerically. the bettetr
the prospects Of the institution.
Virginia has revised her bank fncor-
poration laws and will not give a char
ter unless the institution chartered does
business In the State Of Virginia West
Virginia has also made bank charters
harder to obtain by inserting a provision
that at least one-hah Of the directing
tody shall reside in West Virginia.
New Jersey and Delaware are making
It less easy, and the enactment Of
Federal Incorporation law would fnd
many banks ready to take out charters.
In DAYS that are gone. savings banks
have failed in.the District and have been
taken under the Comptroller Of the Cur
rency's gentle and careful control for
LIQUIDATION to the best of the assets.
Real estate MORTGAGES form Tone of the
savings banks chiefest assets, and. II
taken carefully, at proper appraisement,
and not in too great quantities. IL just
about as good as anything else WASH
ington real estate mortgages are always
salable.
rha r-n,o.ad v,,eo Suro discuaaed Mon-
day night by the District Bankers found
some keen opposition by some careful
and conservative bankers. who were sat
isfied with what they had, and preferred
to hold fast thereto. rather than take
chances with a bill that might be framed
by the lawyers and bankers in Congress.
Still. they were almost unanimously in
favor of Federal incorporation. which
would put the entire banking system OF
the Capital under Federal charter.
At the present time the savings banks
of the District, whether chartered in
Virginia, Arizona, or elsewhere, are
under close espionage by the Comptrol-
Ter Of the Currency. They make five
reports a year. sworn to as to their
condition. &C., and are examined In ro-
tation by the District Bank Examiner
with more frequent examinations II
anything approaching Questionable is
way they are subjected to the espionage
of the Comptroller exactly as are ma
tional banks and trust companies.
The trust companies Of Washington
in existence at the time the matter of
Federal incorporafions for trust COM
panies was settled. took advantage Of
the opportunity within six months-the
time limit given by the>law.
While some of the bankers do not
iplr he nndar consider
alton Monday night should be made
retroactive, yet the opinion is hazarded
that within a few months every savings
banks in the District would seek Federal
ncorporation-other banks would be
using 1t as an advertising medium. and
it would be a forceful argument for the
State banks to come in.
The proposed measure provides for 10
per cent reserve on savings deposits
and 20 per cent on commercial accounts.
1t would seem as IL difficulties might
be lessened by making 1t a Is per cent
on all funds.
Washington ought to be a par city
it would have been long ago but for
the fact that there Is much money made
on collections for New York correspond
entA
-. T" closed with the statement that
nv hSPe me ihShSs Al 4NS" vi duo DOS-
ton.
Better bring 1t back to Washington
There are no stronger banks, as a group
than the fiscal institutions Of Washing
ten. and the Comptroller Of the Currency
will tell you the same thing.
And now the question is whether WASH
iheton Gas Company gas percolated
through the pipes Of CHASING George
towns own gas corporation:
Moreover some Of the GEORGETOWN Gas
Ccmpany's shareholders declare that the
paternal care heretofore exercised by the
Washington Gas Company over the
Gas Company was that Of a
cruel and reckless parent who cared not
for his child's prosperity.
little Railway common sold at 50 3-4.
Capital Traction was a bit firmer; 123
bid: none offered below 123 7-S A few
shares sold at 124
Action in the stock market, Washing
ton, yesterday was centered largely in
Washington Railway preferred. When
the stock was reached a bid Of 80 came
from the broker who mas been on the
buying side for months. This was quick
THE TTI