Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-27
REGIONAL BANKS
SHOW BIG PROFITS
Gross Earnings First Six
Months of Calendar Year
1912 Per Cent.

claims that have been made by
bankers concerning the very large
profits made by the regional banks
OF the federal reserve system have
been confirmed in the report of the
twelve institutions for the last hall
of the governments fiscal year, ended
June 80. 1920.
Total earnings of these banks fol
the six months were ss1,77S.352, as
compared with S4669O517 for the
corresponding period of 1919, while
the current expenses of the banks
during the same months increased
from S9,Ohl,145 for the 1919 months
TO $l3,l95,a4' during the first sia
months of the calendar year.
Net earnings of the banks over cur
rent expenses for the six-month pc
ROD referred to. s6S.5S3,11l, were at
the rate OF l5l-2 per cent per annum
on pald-ln capital of s91. 49,. 000 as
compared with % per cent for the six
month period in 1919 and $50 per
cent for the same period of 1918
In all probability the money strin-
Eency existing during the period COW
cred, the first six months of the CAL
ondar year, and the going high rates
OF discount established by the Federal
reserve Board in its efforts at secur-
ing defation, a heavy curtailins of
credits and limitation of credit only
TO meet essential demands were re-
SponS1b bic in part for the big earnings
Then again. the opportunities for
using the available assets of the re-
Eiona1 banks to the best ADVANTAGE
were decidedly more numerous. The
bankers were unable to extend their
Usual credit accommodations and
many concerns were forced to market
commercial paper. eligible to redis-
count which have not been in the
habit of seeking credit via that
method.
Decreasing deposits have forced the
banks IN the system to rediscount
more heavily, as collections were
slow and the demands of depositorS
subject TO immediate attention.
While indications from various CEN
tiers would seem to indicate easier
monetary conditions as a possibility
of the near future. Washington bank
ers are still complaining of with
drawals.
Important Meeting Called.
r n. Harper. chairman of the ex-
ecutive committee of the District
Bankers Association. for the Ameri-
can Bankers Association convention,
10 be held here October 1926, has
called a meeting of the entire COM
mittee to be held next Thursday at
headquarters in the Gridiron room of
the New Willard. for the purpose of
e,
the approval of a budget and the final
authorization of the various commit
tee to go ahead with their arrange
mentS.
l. b. A. Convention.
The annual convention of the In
vestment Bankers Association Will
be held at Boston October 5. 6 and Z.
A number of special trains will be
run from New York, Chicago and
H.
be a second section of the Twentieth
Century special and will bring dele
gates from tie west, northwest and
southwest
Nominations have been made for the
official ticket 10 be elected at the
convention. a nomination being equiv
alent to an election Roy c. Osgood. a
vice president of the First Trust and
Savings Bank of Chicago has been
named for president and Eugene E.
Thompson of Crane. Paris & Co. Of
hits city has been honored with nom
ination as a member of the board of
governors
Railway Preferred Firm.
On today's session of the local stock
exchange Railway preferred opened
at Al and, after call, sale was re-
ported at Az.
Washington Gas was steady at 42h
and small lot of Capital Traction
stock brought s5N
Railway As were in fair request at
So Other bond issues were entirely
neglected s~-.-
Opens ONCE in Richmond.
John L Edwards & Co. of this city.
m emberS of the New York Stock Ex-
change and of the Washington and
Richmond stock exchanges, have OPEN
ed an Office in Richmond at 923 East
Main street. under the MANAGEMENT