Evening star., 1924-01-25
BANK PROTECTION
METHODS IN SHAPE
District Association Will Put
New Plans Into Effect
Monday-Notes.

A definite and concerted mode Of
procedure to combat undesirable
banking methods as practiced locally
has been outlined to the District
Bankers Association. and will be put
into operation on Monday, next, il
was learned this morning.
The plan, which is comprehensive
as to detail. is specifically directed at
worthless and insufficient" or no
account" items. BY the former is
meant accounts that are managed at
an actual loss by the institution.
while the latter terms are self-ex-
planatory. Miss Grace Bromley, new
ly appointed assistant secretary OF
the association. will act as a clearing
house and dispenser of all informa-
tion in the execution of the plan.
Will Fight Worthless Accounts.
In the matter Of worthless ac-
counts standardized method Of clos
Ing such items has been outlined,
consisting of series OF three form
letters, with final action embedded
in the final message. while fraudu-
lent checks drawn on insufficient
funds" or mo account" items will be
treated in the following manner:
The drawer will Immediately notify
the assistant secretary that so and
So," with no account. has drawn a.
check, whereupon Miss Bromley will
Immediately put every member insti-
tuition on guard by imparting this
information to the parties concerned
She will keep card record of all
information coming from the member
banks, and In due time an interesting
record will be built up.
II is assumed that under the first
plan many losing accounts now on
the books Of the various institutions
may and will be turned into satisfac-
tory accounts.
Fraud Detection Sought.
1t is also asked that member banks
communicate to the assistant. secre-
attempted fraud which may come to
the attention Of the institution. No
specified form is provided for this in
formation. At later date. after the
office gets to functioning smoothly.
the information furnished by the
member banks and now in the posses
sion of the protective committee will
be bulletined to the various banks.
In "one week check-up," con-
Quoted a few months ago. it was
found that 1887 insufficient funds"
checks were drawn, while f1fty-three
utterly worthless ones were presented
for payment.
Plans Entirely Legal.
The association promises that what
is here above outlined is only the
forerunner of several things which
will be designed to relieve the mem
Der banks of their burdens, anxieties
and responsibilities.
Legality of the exchange of con-
fidential lists of names of depositors
who draw checks against insufficient
accounts and Of persons drawing
checks upon banks in which theE
have no accounts has been passed
upon by Frank J. Hogan, association
counsel. who finds that it is not only
entirely legal. but would seem to be
dictated by sound business and bank
ing principles"
Moody's Weekly Review.
Moody's Weekly Review of Finan-
cial Conditions in its current issue
says in part:
THE advent of labor ministry in
Great Britain should be taken as &.
striking illustration of the fact that
nothing but imitation can provoke
liquidation. This event, which in al
most any previous age would have
been thought sensational was accom-
panied by nothing worse than re-
action in foreign exchange bills:
"Cheapness of money and capital is
becoming 4 stimulant to general
trade, and trade needs this stimulant.
Unemployment in the manufacturing
industries now exceeds 5 per cent:
and no distinct Improvement is to be
expected prior to March.
The petroleum industry is evi-
IDENTIFY getting back toward a pros
porous condition. Crude prices went
too low last year; production is no.
so excessive as 1t was: and we are
soon to enter the season of expanding
demand for both crude oil and gaso
line"
Trading on Local Exchange.
Well diversified trading at strong
prices ruled on the Washington Stock
Exchange this morning. Lincoln
National Bank stock was bid up to
$50, with no sales.
Trade continues to lean heavily 10
utility issues. Railway preferred
was off slightly to 1914, with Capital
Traction unchanged at 96k. Gas
5s brought 93h, the IS 100k and ",
and railway As sold at TIA. City and
Suburban 5s were in good demand at
1917 with Telephone 6s selling ar
s71e District National Bank changed
hands at 162, Laston at 72 Il and Mer-
genthaler at 157.