Evening star., 1915-12-19
FINANCIAL-LOCAL AND OTHERWISE.
BY I. A, FLEMING.

BY I. A. FLEMING.
The executive committee Of the national
bank section of the American Bankers
Association made a number of recon-
mendations to the federal reserve board
and the council of governors of the fed
eral reserve banks during the past week
These recommendations should receive
consideration as coming from men OF
great experience. representing every
member bank in the reserve system.
A large number of topics have been put
before the members of the executive COM
mittee.
They considered and it is under
stood, have recommended change in the
system of examination of national banks ::
a form of domestic acceptances similar to
the foreign acceptances which have proved
80 successful; a change in reserve re-
ouirements-a matter which seems to be
reasonably liberal. unless the committee
desired that less reserves on which no
income is paid be carried IN the 1ederal
reserve regional bank.
When il, is understood that six-fifteenths
of the reserves of all member banks are
N
understood readily enough why the
change is desired. Reserves in central re-
serve cities yield per cent
branches for national banks in the same
city with the parent bank were con-
sidered, although whether recommended
or not was not made public The ques-
ton is open to discussion, both ways, but
savings banks and trust companies are
permitted to have branches, and it may
place national institutions at disadvan-
tage, particularly in large cities. In
Vulnerable failures Of small state banks
in large cities would seem to be an argu-
meut in favor of the proposition.
Naturally the severe criticism by the
controller of the currency on usurious
rates of interest charged by many
banks suggests a law on rates of in
terest to be charged by members OF
the federal reserve system.
The Clayton law prevents bankers
from forming stock banks. organized
for foreign trade, with several banks
holding stock. An amendment to this
law is urgently requested. 1t is
claimed that the law today is IA
vorable only to the largest banks in
the country.
Taxation, an amendment to the Clay
ton act on interlocking directories. etc.
also were considered.
Local Securities Active.
There was a decided revival during
the last week in local securities
especially in public utility stock. The
demand for bonds was also excellent
bankers competing with investors, with
the bulk of the weeks sales in bonds
under par value, Railway As and Po-
tomac Consolidated 5s leading.
During the year investors have re-
ceived several millions of dollars in
terest and dividend returns from local
reinvestment of these funds been in
evidence on the local market.
Probably the more tempting action or
Wall street attracted some of the
money, but attention there has become
restricted again and it may be that
our local market is to benefit thereby
No such investments are offered or
Wall street, except perspective. and
the talk is always of big profits that
have not been realized. Selling stock
to pay notes. increasing stock to pay
back dividends and putting bonds
ahead of stocks for this and that pur.
pose are not real bull factors.
Washington offers many s and Z pei
cent Investments with the pledge OF
the prosperity of Washington back o1
them.
There was encouragement in the fact
that the weeks sales for six days ended
with yesterday were the largest for the
year-1,368 shares.
These stocks ought to hold their owr
and perhaps improve in the near future
When the full effect of the regula.
tions to be put in force by the utility
will be more activity in the utilit,
shares, which are really the backbone
Of the market.
To Push for Thrift.
All over the United States during TIL,
coming year there will be strenuou.
efforts to promote thrift and to secure
savings deposits.
The first savings bank was estab-
lished in the United States 100 year.
ago. 1t was founded during a year o.
commercial and trade expansion-wher
the population of the nation was bu
$500. 900 and when there were but 24l
banks in the country.
BY 1920 ten savings banks had beer
esta blished with S.635 depositors ane
savings of sl.13s.576.
The savings bank section of the
American Bankers Association will
nush the new campaign in sixty-twt
American cities with population o.
over 250,o0 each, through the loca
chapters of the American Institute o.
Banking; in many smaller cities by the
association itself and in states througf
the secretaries of state associations. ir
cooperation with the Young Mems
Christian Association. by the aid of the
National Civic Federation OF the in
dustrial workers of the United States
aided by the national postal savings
system and in cooperation with the
bureau of commercial economies in this
city.
A great thrift commission has beer
appointed and thrift will be the tex,
for the year National banks with saw
ings branches may be depended upon te
push for more business in this agsres'
sive campaign.
The suggestion is made that the
thrift campaign be devoid of selfish
motives on the part of bankers and
that they go out of their way to aid In
encouraging thrift-preparedness for the