Evening star., 1923-04-26
BANKS TAKING Up
SCHEME
See Chance to Gain Many
New Depositors In Plan for
Buying Automobiles.
BY }. G. ROYLE.

:, NEW YORK. April 26.-Possibilities
of the financial influence with the
banks of the country which will accrue
to Henry Ford as a result Of his lat
est partial payment selling plan are
receiving serious consideration from
flnanciefs and other automobile manu-
facturers today.
Under the terms OF this plan. pro-
spective purchasers Of Ford cars. trac-
tors or Lincoln cars. can make an ipi-
the acquisition OF a car in any bank
agreeing to the arrangement and con-
tinue payments at the same rate week.
~ When enough has accumulated
through deposits and interests to:
amount to one-third Of the purchase
llVered Then the remaining two-thtrds
payments may be made through
weekly bank deposits as before.
Banks Taking Up Plan.
This scheme Is regarded In automo-
pile circles as the last word in OBJ
tanning all the benefits of compre-
paign. Ford himself denies that he is
the originator Of the idea. but other
oHlclals OF the company do likewise
and the head OF the Ford company.
ffherefore. is generally given credit for
80 RSSptfofl
'Alreaa- scores of banks in various
sections. especially in and around De-
trolt, are advertising themselves as
repositories under the Ford S. plan.
a Few bankers for while looked
tance. but the feeling is growing in
bank circles that the benefits OF the
plan are mutual Ford sells q ma
chine, but the bank has use Of the
purchasers money for a considerable
IN
toner who in manv instances has
never been a bank dspositor before.
AS result. an increasing number
or bankers are going into the propo-
sition.
Other Companies Fail to Follow.
The possibilities Of influence among
the hanks for Ford are plain to be
seen II other automobile companies do
nor nor ioiiow. There is slight indica-
Chevrolet. Overland and Gray have
made no moves which would show a pur-
pose to parallel or duplicate the Ford
scheme. Durant has scheme for a
oank OF Eis own. but SO far as an
nounced the plans for his institution
have not included the financing OF
purchases OF Durant cars on a part
payment plan.
There are supposed to be few bank
r nrs mo NOWADAYS who are hostile to arto-
moplle credits. but the gradual
of the Ford IS deposit plan
cannot help but bring bankers as a.
whole In closer touch with the auto
moblIe business, particularly IL the
scheme results in the maintenance Of
savings accounts by people who here.
tofore have not been bank depositors.
Bankers Deprecate Ford Influence.
The suggestion that the Ford
scheme will add greatly to the
nnanctal power and influence Of
Henry. Ford throughout the country
generally. is deprecated by many
. bankers. nix They admit. however. that
II Ford adopts the policy of spreading
his huge cash reserves which al pres
ent amount TO we'll over 5000 o0o. 900
through the banks which encourage
his 50 deposit plan. the scheme would
assume considerable pro-
portions.
Moreover. no savings bank objects
to being presented with even one new
depositor who has acquired the habit
OF adding to his account at least IS
weekly.
Blanks Working for Him.,
The seriousness with which some
fnanciers regard the situation is
plainly shown by the answer OF the
president of one of the largest banks
OF Detroit today when questioned on
the plan.
Ford has for some years had a lot
7
looks now as II ne Will soon have all
the banks working for him as we'll"
Bank Deposits Jump.
NEW ORLEANS. April IS Especially.
to local bank deposits. 4
generally accurate barometer Of
trade. have increased about II per
cent since January l as compared
with last year and savings accounts
in this city have increased $s25,0oe.
Building contracts for the same
period aggregate over $4,000. 900. a
new record. Only I per cent Of this
was for residences, but building and
loan associations in the last week
have loaned 100000 for the erection
of new dwellings.
Cleveland Banks Booming.
CLEVELAND, Ohio. April 2s tSpe-
ciaD D.-Cleveland bank deposits today
are believed to have reached the
highest point in their history. The
latest reports OF sixteen banks. each
with deposits of more than sl.ooo.ooo.
crease of sa1.722 600 since December
20 last. This increase Is regarded by
bankers as a direct reflection Of the
prosperous condition which exists in
this section today.
New Industries for st. Paul.
ST. PAUL Mimi. April 26 (Spe-
gauge Of industrial ac-
tivity here Is measured to some ex-
tent in the increase of bank clear
ings, which SO far this year are more
than 20 per cent above the similar
period of 1929. The new High Dam
factor. for preparations are being
made to house a score Of industrial
enterprises in the district besides the
Ford factory.