Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-10-31
LAW PERMITS MERGERS
Of NATIONAL BANKS.
BY I. A. FLEMING.

Under the recent amendment to the
federal reserve law. mergers between
national banking associations are now
permissible. Before the passage OF
this amendment said Senator Owen
of the banking and currency commit
tee of the Senate, for one association
to absorb the other, when consoiida-
ton was considered necessary, it has
happened that banks that might have
been advantageously brought to-
gether were kept apart from pride or
unwillingness of one or the other to
being absorbed. The bill recently
passed will make these consultations
easy and will facilitate banking"
John Shelton Williams. controller of
the currency, who fathered the
consultations to result as direct
effect of the new legisla ton.
Not only in large cities but in
many small towns there are numer-
Gus instances where CONSULTATIONS
would unquestionably make for
There are many banks In the
larger cities that might merge in the
interest of business, and Washington
is no exception to the rule.
The chief difficulty has not been
the fact that absorption has hereto
fore been necessary, but the more
personal fact that bank has but
one president, while consolidation
must care for two or more presi-
dents. frequently of men who might
he more successful in other business
lines than in banking.
Started Some Criticism.
At the recent convention of the
American Bankers Association consid-
cradle more or less critical language
was INDUCED in. in the state bank sec
ton, because of the statement of the
controller of the currency that there
had been no national bank failures for
a certain length of time, matter in
which he felt "A close personal pride.
The controller in correspondence re-
sulting from that criticism has taken
the laudable ground that the great ma
jority of state banks were working In
harmony with the national institutions
for the good of the nation ana the
government work, and that no slur was
intended on state banking by the re-
port made by him on exemption of
national banks from failure.
While there have been few very i'm
portant state bank failures since the
suspension of the Lorimer institution
in Chicago, there have been a number
of failures among state banks and:
unfortunately. Chicago has suffered
in this respect severely.
Neither state nor national banks
have lost dollar of depositors' money
in Washington for many years-all
are under the direct supervision of
the controller and his corps of exam
iners.
James D. F. Schneider. late assist
ant cashier Of the District National
Bank. spent the larger part of the day
in saying goodbye to scores of friends.
He has been with the District Ma
tioral Bank since its organization.
MIR. Schneider will go to New York
in day or two. He has several open
ings under consideration and will
make a new connection in the near
future.
Another District National Bank
boy, Lieut.. William TODD Ashby, shook
hands with friends yesterday for an
indefinite period, but before going
gave an exhibition of his skill as an
air pilot, doing a number of stunts
and showing familiarity with the ma
chine and confidence in his own abil-
ity to manage it. Young Ashby, late
private secretary to r. n. Harper, left
last night for Miami, where he will
train in airboat flying.
Traction Shares Lower.
On today's session of the local ex-
change there was 81 broader market
with Capital Traction shares featur-
ing the trading in stocks and at lower
figures. % shares being sold, in all, on
a declining scale from an opening at
IS down to Is. This is on top of the
increase to straight five-cent fares
and with an inauguration crowd"
every day in the week. Today's low
was two points off from yesterdays
closing quotation.
Lanston shares were steady at So q
and American Security and Trust at
210.
Potomac General Mortgage SIS were
active in the bond section, ten one
thousand6ollar bonds selling at 96,
an advance of "a over recent lows
Washington Gas IS. steady at 95 to
IS Is.