The Washington times., 1912-06-09

city In the Union, of any Importance
as banking center-Philadelphia, Cal
Paul, San Francisco-everywhere where
three or four or more banks are doing
business. ..
There is no let or hindrapce to any
save the Comptroller Of the Currency
and the State officials whose duty IL IL
to look after financial matters. when
granted the charter the bank may
panies or any Of our savings banks are
members of the local clearing house
association.
And they are not worrying about
their treatment So long as they car
ry sufficient balance to assure prompt
taking up of checks drawn against them
they can obtain the services OF a menu
per- bank to clear for them just as they
Sommlttee cannot prevent bank clear
iing for ANOTHER unless there is sorfie-
tnlng morally or financially wrong.
When a member of the clearing house
association is found derelict It may be
expelled and that is Just as good as
putting putting up the shutters: Usually, the
called In before this stage is reached
AND the clearing house committee Is a
mighty useful entity. The distinguish
hollow of whose hands the business OF
the. first business city In the United
states reposes. Is a committee strong
rhouBn 10 meet the 1OfN ~ of a
panic, to stand the ueIiiS
assail. to raise the : ions
TO stop IT,
Like many 1911 and nal
i!nMxestig !MeSag ations.. tons. the Il. -.t!se1
Mohey trust probc ~. vy dis
covering simply an old. o.. Dry.
,n",;ss Washington is certainly in line for
enough and plenty of banks. The
bank on the corner Of Seventh and N
northwest, probably the North Liberty
bank, Will reach the completion stage.
The North Capitol Bank is sure to be a
the Fideil ilty Banking Company, under the
RsnE horEis PPii,, Plaiin, on Twelfth and g. old Ohio
where the credit of Integrity and honor
may be capitalized into cash loans. The
story OF this organization is published
elsewhere.
The Fidelity Banking Company, where
loans can be made, repayable in week
~ installments, at uniform interest
ra.e OF per cent, on credit backed by
reputation. ability to make payments as
agreed and the confidence OF two In
dorsers, Will be opened for business on
and Twelfth streets northwest be-
teen June Is and 20.
Frank s. Bright. a prominent lawyer,
is looking after the organization. Henry
T. Blair. member Of the Board of
Education and leading legal light,
will be the first president of the organ
lzation, and the first board of directors
will be chosen from the stockhoiders'
who include former Senator Nathan b.
Scott, South Trimble, James NJ Trimble.
w; g: Garter, Bates Warren, F. s.
Bright. DR. Sprigg, Arthur j. Morris, of
Norfolk, and others.
The carital stock will be Si0l, 600, whfcn
has been subscribed. y
The Fidelity Banking Company will
operate on what is known as the Nor
ris plan"
The theory is that 80 per cent of the
many are savers. but only 20 per cent
are welcome borrowers at the banks
OF their respective home cities. The
other 80 per cent is composed Of people
who must sometimes borrow. either to
tide themselves or some relative or
friend through emergency.
That they have a right to capitalize
their credit. their integrity, and their
honesty. also their standing in a com
munity. and on this basis borrow an
amount Of money which they can afford
to pay back. not at one time, but in
weekly installments, paying little
better than usual banking rates for the
accommodation and furnishing indorsers
as additional surety.
Such banks are in operation in Balti'
more. Cleveland. Norfolk. Atlanta. etc,
and they have been very successful.
They, In meas ire, solve the loan
shark problem, although they ,2ave to
that fraternity such would-be borrow
crs as have not the reputation for hon.
esty and industry, as we'll as those
who are lacking in earning power to
make payments
The bank will have three classes OF
stock. The first 100000, common. going
to the Shareholders. Glass b certif
Gates will be given to depositorc of
amounts of $50, and multiples thereof.
and these will draw per cent. Class
c certificates are sold to would-be and
installment savers, and the certificates
hypothecated for the loans, and pay
ments accredited on purchase price
When the full loan has been repaid the
borrower may. II he so pleases. continue
to pay In his weekly installments and
purchase another certificate, which,
when II totals $50. may be converted
into class b certificate. Glass e poys
per cent per annum interest. Class
certificates. when not used to boz
row on earn per cent after twenty
five payments have been made.
Cash may be obtained at face value
and interest to date of surrender for
either B or c certificates. although the
directors may, in their judgment, use
the thirty days notice clause as pru-
vided in savings banks charters. in
The holder of a fully paid certificate
may either obtain the cash or make a
loan of any amount. A depositor may
pay in on the r class as a means of
accumulation. per cent interest being
paid even on part payments. the sixth
starting when $50 has been accuntu-
lated.
In some or the cltleS Where theSe cont
panes operate the merchants have
made use of them in securing the pay
ment of obligations due them. In MOI
folk one day, a few weeks ago. the larg-
est department store there indorsed az
plications for s., 800 loans made on tho
part Of it's own customers, and they
were thus enabled to collect $3.50, while
the creditors were given the chance to
square their debts at a dollar or two "A
week.
\ The Fidelity Company will he subject
to the same laws as govern savings
hanks in the District and will have to
make reports to the Comptroller of the
Currency.
The institution dose not pose in any
way as philanthropic Institution; It
expects to be a big money maker, like
all successfully managed financial or
ganizations.
Notes of borrowers will be discount
ed-interest deducted in adVance-just
as banks do In most cities; the bor-
rover pays 6 per cent and because Of
the partial payments he loses about 2
a-1o per cent annually, so that ha paws
about per cent, and the company re-
ceives this, enabling II to make the 5
and per cent payments to- certificate
holders; the balance going to the COM
mon shareholders.