Evening star., 1915-03-27
TRUST COMPANIES PLEA
may NOT Be GRANTED
Reserve Board Has Expressed Views
on Rights of Member Banks
in District.
National Metropolitan to Install
Savings Department April /.
Treasury Deficit Is Larger.
BY I. A. FLEMING.

u is scarcely probable that the fed
eral reserve board will take any action
in the application of the local trust
companies of the District for hearing
on the question of national banks be-
ing given the privilege of acting as
executor. administrator, trustee or
registrar Of stocks and bonds.
Some weeks ago. as stated at that
time, chosen representative of the
local trust companies called on the fed
eral reserve board and protested the
granting of trust company functions to
national banks in the District, on the
ground that the local laws required a
capital Of at least s1.ooo,00o before an
institution could exercise the rights
mentioned.
The answer Of the board was to the
eject that the laws of the District,
being made by Congress. 1t did not
have any local laws, hence the action
Of Congress in passing the federal re-
serve act gave to the board the right
to grant such privileges to national
banks,
The federal reserve board is natur-
ally more concerned with the prosper
ity of national banks than 1t is with
trust companies, but few of which are
ants, but one of the six is member.
This question Is attracting great at
tention In many states. In some states
the law Is imperative against national
banks assuming trust company func-
tions. and legislatures of other states
are now considering the various fea-
lures Of the proposition.
The federal reserve board, to date,
has not shown much disposition to re-
verse it's opinions on anything.
In all about sixty national banks
have obtained permission to exercise
the functions which have heretofore
panieS.
To Open Savings Department.
The National Metropolitan Bank. one
OF the Oldest institutions in the city.
the first to apply for the permission
to assume trust company privileges
under the federal reserve act, has de-
cided to install a special department
for the handling Of savings deposits.
The Metropolitan Bank has held out
longer than the majority of national
banks against paying interest. but
finds the competition sufficiently keen
and the desire for interest on the part
of the savers SO general that 1t has
recognized the situation. and after
April will pay per cent interest on
strictly savings deposits.
By the provisions of the federal re-
serve act member banks are only re-
Qufred to carry per cent reserves on
savings deposits, which enables banks
in the system to make larger use of
their funds in savings than Of those in
the commercial department.
Extra space has been taken by the
Rank IN its building for other work.
ers Of tho Institution in order to make
room for the savings department.
wnich win be a separate and distinct
branch of the banking business.
Local Securities.
There was very little interest in the
market for local securities on the ex-
change this afternoon. Sales were gen.
eraliy of small lots and prices showed
no important changes.
Washington Gas was steady at 70,
being the only stock that showed on
the sales record.
Quite a number of $500 bonds, Der
cents. of the Capital Traction Com
i95h. Potomac Consolidated 5s were
sold at s9A.
Treasury Deficit.
Disbursements by the Treasury De-
partment exceeded receipts for March
25 by s5ss.s24os, Increasing the excess
of disbursements for the fiscal year
1915 to that date to s109.17s,13197, as
compared with S51.s17.0s1.42f for the rs
cal year 1914 to the corresponding date
the excess of receipts over payments
for March rs in the general fund was
sll2o, l35.o6. leaving a net balance of
s37 7.015. .000.84.