Evening star., 1922-11-26
BY I. A. FLEMING.

Whether in favor Of branch bank
ing or opposed to It. the fact remains
that the law. as interpreted by d. R..
crissinger. controller of the currency.
permits national banks to establish
branches.
And SO long as state banks are per-
mitted to do branch business 1t
cannot be claimed in justice that ma
tional banks should be deprived Of
equal rights.
Sentiment has always been strong
against chain banking. as represented
by numerous banks in as many diff
feTent cities under one control. Such
system permits Of juggling Of
funds. particularly in emergencies.
and actual conditions Of the banks in
the chain can only be obtained by an
examination of oil the links at the
same time.
Moreover, there is always the added
danger of defalcation Of such a seri-
GUS character that the chain itself
would be in danger. One after an
other banks in such a chain have
been known to explode, with serious
losses to many.
Illinois and Its chief city have
memories Of banker named Zimri
chain Of banks.
The last week has given Washing
ton a novelty In branch banking. in
the diversion from the usual method
Of opening a branch in a promising
neighborhood outside the business
center.
The Second National 'branched" un-
expectedly right "in the center Of the
financial district" starting an in
novation.
business will end here in Washington
cannot be stated with any certainty
Of realization.
Preachment against It is like holler-
ing into the teeth Of a gale of wind
Sentiment is divided. but at the
II 1t Is fair for one 1t is just as fair
for the other.
Until some legislation is enacted In
the matter branch banking is per-
missible. unless prohibited by the
laws Of the state. and even then there
banks are concerned.
A Short-Term Investment.
Any ono desiring a safe and sane
short-term investment, one that pos
sesses advantages that have rarely. II
ever. been offered in connection with
bond issue. can find 1t in United
States Realty & Improvement per
cent Cebenture bonds.
AS an investment for Christmas
savings clubs they form an ideal Sc
curity. il the bank Is satisfied with
8 per cent on its cash.
The United States Realty 4 I'M
provement Company Is a New York
corporation. owning and operating
much heart Of New York property
Trinity Building. United States Real
ty Building. the Plaza Hotel. Hippo
dro.ne and numerous other pieces of
property and the George H. Fuller
Construction Company, one Of the
greatest building organizations in the
United States.
Cni.ed States Realty Company has
retired over $5.000.00o Of its bonds,
and there are today $s.3Si.0O3 out
standing.
The company has made plans to re-
deem these bonds having authorized
an issue of preferred stock to be sold
for this purpose.
The bonds are due July 1, 1924 and
are callable at 1o5.
The company has announced that
1t VIII not call its bonds, but will
retire at par and accrued interss:
any bonds that may be offered for
1922.
Therefore. from. January I, 1929,
until July I. 1924, these bonds are
practically cash. may be exchanged
for cash at any time and pay per
cent until exchanged plus per cent
on income taxes.
A most desirable bond :or speedy
exchange into cash at par plus in
terest on demand.
1t is unique.
Bond Methods Change.
There has been a decided improve
ment in modern methods of market
ing bonds Of late years. Time was
when bond Issues were made for fifty
years, more or less. with no certainty.
no effort to meet payment at ma
turity. Perpetual refunding opera
tions were considered legitimate. al
though they eventually brought trou.
BILE in their wake-that is, in many
instances.
The sinking fund provision did away
with this handicap to sometime re-
demption and has become SO neces-
sary that the proviso Is considered
important to successful flotation.
Investors should pay some atten-
tion to this feature Of the bonds they
would purchase.
Retirement Of a certain amount each
year promises the retirement Of the
entire issue at a stated period. This