Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-01-09
EXTENSION PLAN
BY RIGGS NATIONAL
me-Honored Bank to Adopt
Elaborate Program-0ther
Financial News.

elaborate frOgrdMl-UtneT
Financial News.
That the Riggs National Bank, one
of the oldest and best known finan-
cial institutions in the city, will
adopt an elaborate program for ex-
tension at the final meeting of the
old directors to be held today is the
| forecast of those intimate with bank
ing activities of the District of Co
lumba.
! 1t is freely predicted that the in
stitution will open the recently &C
lquired Hamilton Savings Bank on a
portion of the old Stewart Castle
property, abutting the proposed
| building to be erected on the corner
| by the Semmes Motor Company, and
that another savings bank in the
northern section of the city will soon
be under the direction Of the same
| corporation. The regular annual stock
holders meeting OF the bank will be
| held tomorrow when full details OF the
rumored changes will be made.
Limitation on Rediscounting.
! Limitation of privilege of redis-
| counting bank paper as means OF
extending credit was recommended
singer. controller of the currency, IN
| his report for year ending last DC
! tober 81 Rediscounting OF one
banks paper by another bank is, AT
cedure" and is liable to become
menace when "a bank pyramids its
credit" through misuse Of the priv
ilege.
! Il feel that recent experience admon-
iShes us of the need for limitations and
! I'd ap.ipSt tho possibility oil
| excuses" Mr.. CriSSinger said. III the
law had placed wise and proper nm
| itation upon the extent of these resls-
counts. very few national banks. in my
; opinion, would have failed or even been
gravely embarrassed.
| Records Opposition.
! The controller recorded his emphatic
opposition to the tax exemption pro
posed by Congress of $500 Of income
received from money invested in build
/ ing and loan associations. declaring
; that II offers new method for the
taxdodger. is undesirable and class leg
| islation." He reiterated sundry recon-
mendations to meet changed condi-
| tons in methods of banking" all OF
which. he said. already have been EN-.
bodied in resolutions presented TO Con-
greSs.
1 Mr.. CriSsenger devoted considerable
! space in his report to an econium OF
the national banks of the country.
| which, he said, throughout the trying
period of last year demonstrated
most impressive stability. strength and
isoundnesS of management
! National banks chartered during the
year totaled 169, the report showed.
with aggregate capitalization of $40
| 100000. In the same period thirty
| four banks were reported to have failed
and ninety-three to have gone into vol
untary liquidation.
/ State commercial banks showed the
greatest increase for any single class
! of banking institution. the controller
| reported. growing from 1875 to 1870.
with aggregate resources increasing 10y
| slsn. 600. 900 Loan and trust compan-
les increased sixty in number, but de-
fcreased s13s.oo0,0O0 in resources.
High Price Causes.
| Declaring that the cost of living
! has not declined in proper proportion
| to the fall in basic commodities. J. H
| Tregoe. executive secretary National
| Association of Credit Men. in a letter
| just sent his $4,000 members. points
i out that high store rents prevent the
| retailer from selling at proper prices.
; The high cost of housing accommoda-
| tions is also responsible for the
! failure of labor to liquidate. Labor
! and excessive rentals are the chief
stumbling blocks in the way of lower
| prices today, according to Mr.. Tregoe,
! VINO writes:
THE cost of living has not declined
| in proper proportion to the decline in
i basic commodities nor to a degree
| that gives confidence that one of the
| chief costs of the finished product
! labor-is to be promptly liquidated.
! One Menncing Condition.
I'VE easily discover one condition
; that makes the gap wide between the
price of the basic commodity and the
| price of the finished commodity. In
the heyday of our prosperity. when
; business was easy and people were
| spending freely. number of enter
! priSes were started, especially in the
! larger cities. under increased rentals
for desirable store sites. many of them
contracting leases all out of reason
| and thus forcing up general rental
! levels. This fact is weighing heavily
| on many retailer, preventing him
from selling at proper prices.
F, I'VE are therefore led to suggest
that credit managers in scanning
! financial statements for the new year
note the matter of rentals carefully
and insist upon having this informa-
ton in the statement The high cost
| of shelter is now seen as one of the
hindrances to lowering cost of
living.
should Have a Heart.
when so many enterprises in diff
ferent lines have been forced to meet
the situation by large liquidation il
is right that landlords do their part
and not force enterprises into unsafe
position or insolvency by maintain
ling rentals entirely out of proper
ton to present conditions.
at is difficult in summary to reach
the end of the list of foolish things
done in the immediate postwar
!perfod. Evidences OF reckIessness and
lack of foresight are found every
where Men went at their work like
iblind folded children seeking to tag
each other. 1t was hit-andmiss
process.
Rentals must be pared else prices
cannot be brought down nor living
costs Rental advances. of course.
were necessitated by increased taxes
and overhead. but overhead has now
declined and taxes give promise of de-
1 clining. Rentals. then, must quickly
follow, else those who keep them up
will suffer directly and seriously from
a continuing depression"
Local Exchange Active.
Considerable activity marked the
opening of the local stock exchange
| today. Several blocks of public utili-
ty stocks changed hands. while Sc
| curities in two of the local banks,
Mergenthaler Linotype and Lanston
n Monotype also found buyers. The bond
| market was fairly active also.
| Thirty-two shares of Capital Trac-
ton in odd lots, sold at prices rang
ing from 81 to 97A. Seven shares OF
Washington Railway and Electric
preferred brought 65. while seventeen
! shares of Washington Gaslight were
disposed of at 49N and so. The bank
stocks sold included twenty shares OF