Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-09
may ASK STATEMENTS
WHEN MAKING LOANS
Local Bankers Consider Proposition
for Unity in Obtaining Fiscal
Showing From Borrowers.
Necessary to Meet Reserve Law In
Observation-Disclosures Sc
curities Quiet, Steady.


At the regular meeting Of the WASH
ington Clearing House Association yes
terday afternoon the question OF
adopting . rule requiring all applicants
for loans to file a sworn statement OF
their financial condition was consider
ed. Some Of the clearing house associa-
lions in other cities have adopted this
measure.
In order that bankers may take ad-
vantage of the rediscount privileges of
the federal reserve system. 1t Is neces-
sary that they file a statement OF tho
fiscal condition of the borrower. bor-
rowers, corporation or firm, whose pa
per they are offering for rediscount.
The association decided that the time
was not ripe for radical action on this
matter, although the members OF the
association. each national bank being
represented. gave Endorsement to the
plan as probability of the near future,
and agreed to obtain statements wher-
ever possible.
Statements are generally required OF
borrowers before obtaining much OF a
line of credit. it being nothing put
reasonable that the borrower VINO
would use a banks funds should give
Information as to his business affairs.
This Information is not necessary nor
IL IL exacted of borrowers on collateral.
the security being always OF prime
standing Of the borrower close sec
ond.
Before adopting any hard and fast
rule in the matter of statements the
bankers hope to educate borrowers TO
the wisdom and benefits OF sworn
statements of condition.
Currency Association to Dissolve.
The Washington Currency Associa-
ton, the first of it's kind in the United
States, organized shortly after the pas
sage of the Vreeland-Aldrich emer-
gency currency act. June 8, 1908, to en-
able Washington bankers to take ad-
vantage of the emergency currency is
sue, in times of stress or panic. IS TO
dissolve Following Washington other
cities organized currency ASSOCIATIONS
although at this time there was noun
ing beyond the normal in the outlook
But the outbreak of the war brought
millions of the emergency currency
into use. The law was the vehicle by
which the stormiest outlook in Amer
lean financial conditions for years was
readily and easily bridged. while
the federal reserve law was on the
statute books but not in force. 1t was
the emergency currency act that saved
the day and not the reserve law.
All emergency currency having been
retired, the law. by limitation of time.
out of force. there is nothing for the
currency association to do but wind
up its affairs. which will not require
much clerical effort.
To Stay in Present ouarters-
The Washington Clearing House As
ISOLATION voted unanimously at Its
meeting yesterday afternoon to remain
In its present quarters in the National
Metropolitan building. declining to join
with other financial organizations In
union headquarters.
Local Securities.
Business on the stock exchange was
not active, most of the trades being of
odd lots taken by investors. While
prices were very steady. there was no
change from the figures dominant
earlier in the week. The business was
entirely in the public utilities, and
therein Is some encouragement for the
future. Whatever activity there has
been IN the past has nearly always
been In this group or some one OF the
stocks In II.
Transactions were at STU for Capital
+ fer ssaTss and 7a% to-
for Warrington Gas.
Local war shares nominal; 1855 bid
and 1870 asked for Mergenthaler and 80
bid and 81 asked for Lanston.
The record for the week ended today
was 647 shares of stock and $33.50O
bonds, face value. Potomac Electric
consolidated 5s furnished $4,000 of the
bond sales and Washington Railway
common 23s shares of the stock sales.
the balance being distributed through
out the list.
Condition Of Treasury.
The condition of the United States
Treasury at the close of business yes
terday was:
Net balance in general fund. $124,-
1886.
Total receipts. 31.956.271.
Total payments. 33,581.s1S.
The deficit this fiscal year Is $33.962,-
174. against a dehcit of $26.S87.s 07 last
year, exclusive Of Panama canal and
public debt transactions.