Evening star., 1918-02-19
FINANCIAL
MEASURES INTRODUCED
BY I. A. FLEMING.


noon by Senator Owen, each of the
Esneasures having the approval and be-
fains suggested by John skelton VIII
e'aiams, controller of the currency.
Many of the measures will probably
be enacted and will unquestionab1y
snake for stronger banking institutions
The purposes Of the proposed acts
: follow:
To regulate the allowance of over
drafts by national banking associa-
1fons and to provide penalties for the
violation of regulations.
To require the bonding of all bank Of
8ciaIs of national bank associations,
from the president down. harding
funds OF the bank. and to prevent Of
2cers and employees from making eras-
ures in the books of an institution,
Recent peculations in New York and
Washington were cited in support of
the bonding measure.
An act to enable national banking
associations to maintain branches.
An act to enable national banking &
associations to extend their corporate
existence for other purposes.
Requires building and loan associations
and corporations to maintain with the
controller of the currency in cash or ap-
proved securities. 10 per cent OF its capi-
tai and surplus as security for the de-
poitorsS and creditors
Gives the controller OF the currency the
matter of approval OF savings banks and
building and loan associat ations desiring to
start in business in the District
To provide a penalty for obtaining
credit from national banking associa-
tions and for obtaining credit ON false
statements.
To permit rechartered banks to use
bank note plates of the original bank.
To limit to the amount of actual
capital paid in and surplus-unim--
paired-the amount banns may expend
for Office buildings.
To permit the treasurer of the
United States to sell bonds securing
circulation within thirty days after
bank enters liquidation.
Includes receivers in penalties pro-
vided for embezzlement.
Creates a method of conSolida ting
national banks with each other
Requires that capital and surplus
shall at all times be equal to one-tenth
of the amount of deposits.
Provides guarantee of deposits not
exceeding $1,000 in amount. with ass
sessment of one-tenth of l per cent
against national banking associations.
Provides against usury and permits
national banks to make contributions
to the Red Cross.
Loans made to directors must have
the approval of a majority of the board
of directors.
Requires directors to qualify as such
within thirty days after election or
election is void
Provides for better regula tion of saw
ings banks in the District of Coium bia
Provides for engraved signatures on
national bank notes.
1t is believed that local bankers ia
vor the great majority of these sugges-
tions. The bonding of officials is moth
ing but wisdom: the esta bl:shment of
branches has long been desired by ma
tional banks, but permitted only to
trust companies and savings institu-
f<,- <1N-
tanning credit on false statements the
better the bankers will like it; the re-
striction on building is one that is
needed and approved by the bankers:
methods for consolidation are needed
without going through liquidation: and
other suggestions are likewise in line
with good banking. although there will
be objection to the guarantee of de-
posits of not over $4,000 on the ground
that one class of depositors is favored
against another.
For Action on Bad Checks.
At the meeting of the District Bankers,
Association. held last night a resolution
Was introduced providing for a charge of
- cents against every returned check
marked no funds" the charge to be
made against the account of the depositor
giving out the check against exhausted
or inadequate deposit.
This is one of the greatest evils of the
banking business Of Washington. 1t has
grown from year TO year. until it is esti-
mated that from 900 to 400 n. g." checks
are returned by the banks OF the District
every day.
On Saturdays the number is greater
than on other days. most of these checks
being given out on Friday. the "kiters''
knowing full well that they will have until
Monday to make good their deposits
against these checks as the banks can
va<.fy y,vDfa act a f~a ca I'D
The estimate Of bad checks returned
daily was made high as sos by one
trust official Either eco or SEQ would
eeem to indicate that the limit OF en-
durance had been reached by local
bankers and that the time for stopping
the practice was past due.
There are very few relliy bad checks.
checks drawn banks where the
turned checks are the banc of junior
bank oiBcials.
The resolution will come up for ac-
ton at the next meeting nf the Bank
ers' Association. There should be no
opDosition-
Want Admission to Clearing House.
Another resolution introduced at the
Bankers Association meeting last
night. provided, for the admission OF
trust companies and savings banks to
the local clearing house association,
under suitable rules and regulations.
AS at present constituted. only ma
tfonal banks are members of the clear
fng house association. and an amend
ment to the constitution of the organi-
zation would be necessary to admit
other banks.
It was brought out at the discussion
OF the Improbable accounts last night
that there are nearly so 900 deposit
accounts in the banks of this city car
rving average balances of less than
s100. IL is claimed that these accounts
are handled at a direct loss to the
banks of large amount of money and
that with 80 cents monthly charge
they will yield over s350,0o0 a year to
the banks.
ideas in the matter of forcing the
charge. many admitting that they will
put it into effect with April
.One trust company has notified its
depositors of charge of 81 on ac-
counts where the balance is under $50
and OF so cents a month where the
balance is permitted to fall below 500
On the Local Stock Exchange.
"A SLOW steady improvement is shown
in investment demand for local secur-
tiles Prices for practically everyt hi z
on the local stock list are relatively
low. This fact is tempting investor to
take a chance, further encouraged by
improved conditions in the leading Sc
curity markets of the country and bet
terment in bond circles.
Chesa peake and Potomac Telephone
5s sold on today's session to the extent
- $4,000 at 9sla, new low for this
issue. Potomac Electric first IS
brought 90. also new low Washing
<r>r1 s- yrll