Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-31
WASHINGTON BANKS
HAVE AFFAIR YEAR
Net Results Will Not Equal
Those of 1912 for Va
rious Reasons.
LOOK FOR BETTER
PROFITS IN 1914
Local Securities Close Firm-The
Years Sale Record and the
Price Fluctuations.
BY I. A. FLEMING.

During the year just drawing to close
the bankers of Washington have been
fairly successful i'll the conduct of their
business, and yet the net results in most
cases will show a lessening of profits as
compared with the returns of 1912.
Money was kept Well employed until
the early days of October, when the signs
of business depression and the shadows
Of coming events caused the adoption of
conservative methods, the contraction of
loans and the holding of more idle money
In vaults than at any period of the year
The taking of these funds from their
earning capacity has materially reduced
net results, although they are again fully
employed as reserves drawing fair in
terest.
1t is probable that there was more
cash in the vaults of Washington
banks at the beginning of business on
than ever before in the history of the
city. 1t cost considerable in the way of
interest to the banks to withdraw this
money from employment. Then, too,
1912 for the reason that government
bonds have been materially lower, as
well as other bonds and securities
which form a considerable part of the
Investments of banks
Writing off the -osses on these in
vestments. other than government
bonds. has been quite generally at
tended too, and has made quite a cut
In the net earnings Of the year
Reimbursement here as well as in other
centers and cities has been going on
steadily, and with the advent of the
new year the slate will be fairly
clean. Bankers therefore look forward
to better results from their efforts in
1919
The clearings, showing an increase
OF $1O.OO0.o00. show that there has been
a larger volume of trade. even though
less than 1912 in net gains.
The year closed with but the regu-
lation five "calls' from the Office of the
controller of the currency. There was
general belief a while ago that at least
one and possibly two extra calls might
be expected. so close was the depart
ment keeping it's eye on the banks of
the national system.
The general impression in financial
circles is that there will not be a call
before February.
Secretary McAdoo's advice to have the
shareholders of national banks vote on
the Federal Reserve Association meets
with approval of local bankers. At the
annual meeting next month shareholders
Will be asked, very generally. to either
vote on the proposition or to approve the
action of directors taken in the interim
Shareholders, owners of stock in a ma
tional bank. may not want that insti-
tuition to stay out of the system, thereby
losing its charter. and as suggested. they
should be given the privilege of voting.
The Commercial National Bank di-
rectors have set aside $4,000 to surplus
account and declared the regular quar-
terly dividend of $1,000.
This brings the capital of the institution
to $4,000 and the surplus to $4,000.
an immense burglar and fireproof vault
In its banking office. The walls of the
vault are about two feet in thickness,
solid concrete. lined with steel plates. 1t
will, when completed. give the Federal
National one of the best vaults in the
city.
There was decidedly strong tone to
Wall street stocks, following q rather
slow opening. The sensation was Texas
Oil, which moved up several points on
the theory that a 10 per cent dividend
would be declared. Former officials OF
the company were also reported as form
ing pool for the purpose of advancing
the stock.
The closing day of the year was at
tended with rather more activity than
usual of late In the bond department. in
had started. In all $500 bonds were
traded in, but the stock trades We're linn
tied. and to odd lots. 1t is not likely
that there will be much Improvement
until the annual reports have been given
to the Tublic.
The year 1913 has been the largest from
the standpoint of passengers carried and
earnings ever enjoyed by the traction
companies of the city. For the first time
Congress has been in continuous session
between sessions, and the capital has
been more of an attraction to tourists
than ever.
The gas companies have also recorded
record years in natural growth, and util-
tiles generally have prospered-
Tcday's sales were at 1OI't4 for Trac-
ton 5s, 9Sk for Potomac Consolidated 5s,
Jos for Potomac first IS, and these lat
ter appeared to be highly favored.
Stocks sales indicated no change in
prices of Importance