Evening star., 1924-08-17
BY 1. A, FLEMING.

Banks. finance corporationS-ln6e
practically every one in the monev
'"nd'ng business With the single eX-
ception of pawnbro&lers-are having
a hard time these late August days
in placing their funds to advantage.
Federal Reserve banks are no eX-
ception to the rule indeed-they are
even In n worse position than banks.
~ about their only chance to make
profits is from rediscounting inter-
est charges, and the banks not being
able to make all the loans desired
are doing very little rediSCounting.
True, the reserve banks have in
vestments and when money is not
in free demand they may en- arge
their bond holdings. just as the
banks are doing.
The recent issue of Washington
Railway 6s of 1884 was taken al
most entirely by the banks of this
city for the employment of surplus
funds, giving them a sos rate for
their money. Some few spectators.
seeing no reason why these bonds
should not sell as high as gas Us,
placed moderately large orders but
have been disappointed so tar In
rea iZing any advance.
Finance companies have felt Sc
verely the strain of dullneSS. There
that the banks can not handle. so
abundant is the supply OF cash.
Bankers, however. are not making
concessions in rates to induce any
better inquiry for money. as tEey do
rot eblieve that concessions are nee
risary. Moreover. the slarkneSs In
business doesn't reduce expenses
salaries from the president to the
runners so right along and all other
overhead as well. taxes OF various
kinds. grcss profits, capital stock.
income. etc, etc.
To Keep on Fighting.
That great American traveller in
foreign lands. Francis ". Savage.
rreSident of the Northwest Savings
Bank recently announced that he
nronosed to keep on fighting ut the
session of the American bankers As
sociation in c h icago tins ia
Ia gainSt that great evil, branch
banking"
The chances are that the fight. II
it reaches that stage, will be much
harder this year than II was last
when the a. Il. a. went on record as
against branch banking.
\ little later. at a meeting OF the
council of administration held at
White sulphur, Va. the matter was
again broached.
The McFadden measure was up for
Consideration and a motion was mace
to give the measure Endorsement IN
toto.
The presiding officer ruled the mo-
tion pat of order. as the \. Is. A had
gone on record as against branch
banking.
\ countermotion was made to give
the McFadGcn bill Endorsement, sans
the branch bank features. This the
friends of the measure promptly
table,. so that neither friend nor foe
was able to debate the proposition.
After all is said and done, the A.
E. 4. is a poor pace to tight any
thing. The a. +. A. makes no laws
and has no power beyond recon-
mending; it cannot discipline one OF
its own members. other than by
suspension or expulsion.
Kirmet. What is is, and what Will
/ he will be. Fate. Branch banking
is and probably will continue to
exist for years to come. So tar as
! Washington is concerned. branch
banking has not seriously intertered
with other institutions and. accord
ing to reports. with one or two eN-
ceptions has not been very protita-
BILE to those engaged in II.
Bankers in Defense Plans.
Inquiry was made of the District
Bankers Association as to the part
it would play in Defense day celebra-
ton.
AS assurance of their part in the
Nations need, the association may
point with pride" to its wonderful
record made in the great Liberty and
Victory loan campaigns, which Will
| ever be a source Of satisfaction and
pride to the bankers of Washington.
/ to its merchants, its professional men
and the army of workers within its
| corporate limits.
By tremendous effort of the Lib
erty loan committee, John Poole, Iu-
gene T.. Thompson, Corcoran Ihom
| and Eugene Allies, ably assisted by
the public-spir men, women and
children of the city, by the clergy
lnewsIaper-in fact, by every one
| there was sold in this city Sl4I, 'os,-
| 500 face value of the various Lib
erty issues Many men and women
bought until 1t hurt" Others took
large losses in order that they might
continue to buy and buy again.
The District of Columbia went
"over the top" with bands playing
| and with an enthusiasm that would
not be denied.
The Federal Reserve Bank OF