Evening star., 1924-08-24
BY L. A. FLEMING.

Negotiations were opened in this
city within the last few days for
some very large loans secured by real
estate, at the lowest rates reached in
years. 5k per cent or per cent plus
the intangible tax.
The New York Life, Prudential and
Metropolitan Life are offering large
amounts at the low rates and at least
| one of the companies named is seeking
loans on residences. something they
have not been doing since the war.
Naturally the insurance companies
are getting the pink of the loans and
local lenders will have to meet the
| reduction In rates or be satisfied with
second choice of trusts
Naturally the demand for mortgage
money Is nothing like as active as it
was few months ago, and yet there
are some big business properties un-
der negotiation.
Rents on residence property, apart
ments, ETC., are being materially
shaded and many concerns in older
business blocks are shifting their
offices in taking advantage of lower
offers of rent. This has forced some
of the hitherto favorite downtown
structures to reduce their own rent in
the hope of holding old tenants or
inducing new tenants to select loca-
tions.
Local bankers are not looking for
any improvement in the demand for
money in the near future, but they do
look for a better demand with the
advent of the holidays.
Federal Financing.
Federal financing in the near future
will probably be at the lowest rates
since the war started. loans have re-
Gently been made on Wall Street
down to 11a per cent but even at this
low figure demand was inconsider-
able.
Interesting cases have recently
been excited in the lower courts. in
the case of makers of wills appoint
ing national banks with trust COM
pany privileges as trustee. Between
the making of the wills and the death
of the testators. in two cases. the
national bank named was merged
with a trust company, and the court
held that the testator had not named
the merged institution as executor.
The United States Supreme Court will
decide.
Welcome the Passing.
Washington bankers are breathing
easier now that the three savings
banks organized in the District, un-
der declaration of trust have passed
lieved the banking situation Of
numerous annoyances and have un-
doubtedly believed in the "declara-
tion.''
This declaration of trust is said
to relieve the promoters who have
intimated their intention Of starting
bank of all responsibility therefor
Banks so organized do not come
under the supervision of the con-
nf
members Of the clearing house.
There were three of these so-called
banks in operation.
Regular banks are obliged in ac-
commodating their customers to take
checks on these banks for collection.
Runners are sent to the so-called
banks to collect the cash, and they
have been compelled frequently to
return empty handed. On at least one
or two occasions cashiers checks and
certified checks have been given for
checks presented, and they had to
be sent back for collection, and pay
ment was refused with the comment,
Have not the cash; tomorrow
maybe"
No Good Reason.
Just why people should put their
cash into such alleged banks is a
mystery, especially with scores of
sound institutions under Treasury
supervision" which is almost a prac-
tical assurance of safety.
An effort will be made by Washing
ton bankers to secure the enactment
of a law prohibiting any banks be-
ing formed in the District on the
declaration of trust plan, which is
apparently no good plan at all.
There has been a splendid elimina-
tion of weak sisters in the local bank
sy1rr al
expense to depositors-luckily for
them. 1t is probable that one or two
more will find the road too rough.
with small capital tied up in long
time loans, and yield up the fight
without loss to depositors.
And the local banking field will be
all the better for it. 1t Is not within
the probabilities that with the ex-
amples of the year before them there
will be any one interested in the
fiotation Of stock for new banks Of
restricted capital.
The District of Columbia Bankers
Association and the Clearing House
Association have watched the situ-
alton closely and have managed mat
ters with consummate skill in purify
ing the atmosphere without serious
consequences to depositors.
Germany's New Bank.
When the total Issue of worthless
currency by Germany had driven the
mark into virtual oblivion so that it
required the elimination of twelve
ciphers to equal one gold mark in
value, it was deemed an overly ripe
time for currency reform.
In November. 1923. the total value of
money in circulation in Germany.
when expressed in gold, was only
100000 gold marks, or about S
per cent of the total pre-war circu-
lation.
A temporary reorganization for the
purpose of supplying the immediate
needs of the country was effected in
November, 1928, through the establish
ment of the Rentenbank, which de-
ENORMOUS SELLING