The Washington herald., 1922-06-24
CRISSINCER STOPS
BANK PROMOTIONS
in DISTRICT FIELD
Will Not Approve Per-
mits Where Fees Are
Involved.

will refuse to approve any application
for the organization of a national
bank that contemplates or provides
for any promotion fees. and the comp
troller will not approve or permit the
opening or starting of any bank in the
District OF Columbia organized under
the laws of any State of the United
States that sets apart or applies any
part of the money collected from sub
scribers for the payment of promot-
ers' fees. for the sale of stock. or for
service in starting and opening any
such bank. whether the same is pro-
vided for by contract with proposed
bank or by contract with the sub
scribers to the stock of the proposed
bank. THIS announcement was made
by Comptroller Crissinger last night.
The organization division Of the
Comptroller's bureau is ordered and
directed to see that the foregoing reg
ulation Is rigidly enforced.
The chief national bank examiners
OF the various FEDERAL Reserve dts
tricts will before the opening "f any
new bank in their respective Districts
or within the District of Columbia at
tent in person. OF have a cJmpetent
bank examiner present to see that
this regulation Is strictly complied
with before said bank shal' be per-
mitIed to open fer business and tnere-
after TO see u at no promotion fees
shall lie paid from the resources of
tie Oank
This order shall be in force and ef-
feet Immediately. and shall apply to
all pending applications for national
banks and all State banks in the Dis
trIct of Columbia requiring the ap-
proval OF the Comptroller OF the Cur
rency before opening for business.
\ further increase of $4,000. 900
in loans secured by stocks and
bonds. together with increases of
sS7.OOO.OOO in commercial and in
dustrial loans and discounts. main
ly in New York City. and of $751;
100000 in investments in United
States bonds and notes. as against
reductions of s2O. 200. 900 in Treasury
certificates. and of s4,OO0,O0O in
loans secured by government obli-
cations. are shown in the Federal
Reserve Boards weekly statement
of condition on June IA of 500 men,
ber banks In leading cities.
Total leans and investments show
an increase of s91. .OOO, 900. of which
sT5,0O0.oO0 represents an increase
in New York City. OF the
total of s15.213.0 100000 of loans
and investments reported as of June
ii OF the present year, the share of
other" loans was 46.7 per cent, as
against 53.1 per cent about a year
ago. On the other hand. the share
OF investments in government Sc
curities shows an increase for the
same period from 9.5 to 1871 per
cent. and the share of corporate Sc
curities owned and loans thereon
an increase from 33.1 to 3s.1 per
cent
Government deposits show re-
duction for the week of S3S.0O0, 900.
other demand deposits (net) in
creased by S1S3,0O0.O 900, mainly in
anticipation of the income tax pay
ments due on ISe following day and
customers subscriptions to the
June Is issues OF government Sc
curities- Time dep Dsits show a de-
cline for the week If s24.0OO.oOo.
ONLY a nominal change, from
s1l7.000.000 to S116.y00. 900, is shown
in the total borrowings from Fed
eral Reserve ban'Ss. the ratio of
these borrowings to the reporting
banks combined loans and invest
ments continuing unchanged at O8
per cent.
Reserve balances of the reporting
banks decline about $4,000. 900.
while their cash in vault increased
by S2.OOO.OO0.
Dividend Declared.
The board Of directors of the
Washington Mechanics Savings
Fank have declared the regular
quarterly dividend of 2 per cent
and 1 per cent extra, payable July
l to stockholders of record June 80
At the same time, A. S. Offutt,
brother of Hilleary L. Offutt, jr.
CT the District National Bank. was
elected assistant cashier of the In
stitutiOn.
Local Securities.
Stability of Washington Railway
and Electric common stock. at a
s!i"htlv lower figure than the re-
cent high, was the outstanding fea-
;"re Hf trading on the Washington
S'Ork Exchange yesterday. This
issue held firm throughout the ses-
son at 491s. being traded in exclu-
stvely in ten-share lots. aggregat~
Tng 1f0 shares. Three shares OF
MerGenthaler were sold at 1904.
Potomac Electric debenturs IS
also held firm at 99A. with the first
SIS Of the company selling at 9GI.
WASHINGTON Gas 714s brought los.