Evening star., 1924-10-02
REPORT ON PROFITS
IN BANK ACCOUNTS
Experts Give Figures on
Point Where Small Bal
anCes Render Return.
BY CHAS. p. SHAEEEER.

/ Inc american Bankers Association
convention, just closed in Chicago
/ mas been productive of developments
pertinent to much mooted local
prooiem-that of the proportions of A
prontable commercial account and of
| improbable.
The convention was told that Sion
| is considered profitable average bal
ance for commercial account by
large majority of 241 bnaks located in
communities ranging in population
! from $500 to 10000. according to
figures quoted by Frank Roberts.
Louisiana State vice president of the
| national bank division of the national
body.
Where the population ranged up
to 1850, Mr.. Roberts inquiry showed
that of 120 banks 40 considered $50
profitable average and 81 required
800. In cities of $4,000 to 10000, Of
% banks furnishing information. only
ii made any profit on $50 average
balance, 10 required 800 and -
needed 5000. A considerable number
of banks reported from so to 50 per
cent of their commercial accounts
improbable.
AS populations increase the neces-
sary balance for profit making. Of
course, also increases. Therefore, in.
a city of Washington's population, il
would appear that sum in excess
of 800 would be necessary to present
profitable balance, the argument
being based on the above figures
Then, too. the situation here which is
undoubtedly more congested than in
any other city in the country, ire
spective of size, counts heavily
against profit making on small ac-
counts.
Tha +ot ietia
Roberts seem TO bear out the asser-
ton of great number of Washing
ton bankers that required sum
should be rigidly demanded and in
default of such a service charge of
not less than 81 d month should b.
exacted to carry the account. Ther.
is some agitation locally that even
this charge would not be sufficient
1t is extremely doubtful if the Ioca!
problem will arrive at happy solu-
ton At the moment there is no Set
sum which must be maintained as Il
balance and there is no rigid enforce
ment of a nominal service charge ex-
cept in a few Institutions. On thc
other hand, there are bankers, and
powerful ones, too, who have f1atl>
refused either to require set amour
or to make a service charge.
Courses in Banking Arranged.
the one on credits installed last yea
in the curriculum of the local chapter.
American Institute of Banking, viii
be opened at joint forum dinner {"
be held in the City Club next Tues
day night, at $50 O'Clock. Tuition
of SO per class will be charged all
students except those from non-mem-
ber banks. who will be required I"
pay SIS per subject. Enrolment is
restricted to graduates of the stand
and course, bank officers and senior
bank clerks. according to James c
Dulin, jr., chairman of the forum
committee
Joseph K. Meyer, chairman of the
special appeals committee of the In
ternal Revenue Bureau, and a mem
ber of the faculty of the Washington
School of Accountancy, will instruct
In accounting, and r. Gordon Finney.
former bank examiner. will conduct
the credits course.
Status of Railroad Eauipment.
Class l railroads on September l.
had 11,I5S locomotives in reed of re-
pair, 1S.2 per cent of the number on
line, an increase of 794 over Sep
tember l, the American Railway As
sociation reports. There were 6,O23
serviceable locomotives in storage, a
decrease of 729.
Freight cars in need of repair
same date, totaled 212,412, or 9S per
cent of the number on line, an in
crease of 1908 over September /
Heavy repair was needed for 16O492.
an increase of 2,292.
Trading on Local Exchange,
| Heavy selling in preferred stock of
the National Mortgage and Invest
ment Company featured trading on
! the Washington Stock Exchange to-
| day. a total of 220 shares changing
hands at 8, a slight easing off from
previous levels. Five shares of Ma
! tlonal Union Fire Insurance Company
| sold at 10l2 and 10 shares of Riggs
| National Bank brought 500. Capital
| traction was firm at SS as was