Evening star., 1924-06-15
BY I. A. FLEMING.

District or IOlumDia bdnherS ASSo-
citation has passed into history. but
so recently that a little comment by
an onlooker is still pertinent.
From many viewpoints the conv-n-
tion was more interesting. more in
structive. more largely attended and
a greater success than any of its pre-
decesSors.
There never have been quite so
many presidents of banks in attend
ance while the number of bank dire; t
ors present far exceeded that OF any
previous convention. Moreover. young
people predominated and made the
lively, while in the entertainment
features they gave a new life TO the
various functions.
Speeches Highly Enjoyabic.
Speeches at the sessions of the con-
vention were neither numerous no'
tiresome. George +. Roberts. wee
president of the National city Bani
Of New York city and well known
writer on c, onomic questions. AM
George j Say, governor ~ the fgu-
eral Reserve Bank of Richmond de-
Glering the principal addresses. Both
claimed close attention from the
delegates and were loudly acclaimed.
Mr.. Roberts literally dissected the
reparations question and the Dawes
plan. making all matters pertaining
thereto plainly understandable.
Two very interesting reports were
furnished-one a dissection of the de-
posit accounts of twenty-five oahhs
in Washington, in the aggregate pA
W. J. Waller and the other an eA-
planation of various forms OF oonds
in use in the same institutions, by r.
q. Addison. 49,,
Mr.. Walters review again demon
deposit account like the poor. is ai-
ways on hand. 1t was somewhat
startling to hear the array OF n"l-
productive accounts-hundredS yrs
thousands of them-that cost no,eE
to keep on bank records and mat
never will reach the paying stag"
700 Accounts Total $500.
One bank official admitted that
there were 700 deposit accounts IN
mis- bank that showed a total deposlt
of but $4,000. somewhat mitisated 0!
the fact that many OF them were
dormant.
Others called attention to the fact
that these small accounts rarely be
came important enough TO be paylne.
When a small percentage reach ralr
proportions-Say few hundreds OF
dollars-the depositors Immediately
begin talking about interest and very
frequently shift from the cnecklns
to savings account for the ) per cent
interest. so that there Is llttle none!
resulting to the bank for the nursing
period.
Education was suggested as the
best method of bringing the deposltor
to a realization of the accommodations
and service rendered by banks IN
connection with handling of small ac-
counts. literally keeping books Tor
many of their depositors; IN MAKING
out income tax returns, Tor Whicn
purpose many banks hire experts at
facbinrr collect
ing interest, giving drafts, to say
nothing of the giving of advice.
which frequently takes up much OF
the bank officials time.
Service will not be curtailed. SAID
one speaker. but the time has come
when the laborer is worthy of his
hire, and those who take so much
Of our time should really offer some
recompense."
5o-Cent Charge still Maintained.
In the meantime at least two ma
tional banks are still maintaining
the 50-cents-a-month charge on de-
posit accounts of less than s10o-that
Is on deposits allowed to fall below
the required 800.
Just why bankers will permit the
opening of checking accounts with
original deposits of SO is a mystery.
The fixing of a decent minimum
would do much to avoid worthless ac-
counts that are always more less
trnu lesome, frequently overdrawn
and otherwise annoying.
One large bank in making an anal
rsis of its deposits discovered that 36
per cent of the deposits paid 96 per
leading officials stopped to think. A
reduction of deposits to the 36 per
cent would wipe out but 4 per cent
of the profits while il would enable
the bank to do it's business with ma
terially less than half of the number
of employees; the official staff would
have much more time for recreation:
other expenses would be slashed in
half and less office space would be
required But all this was theoreti-
cal and business goes on in the same
oil dway with 81 per cent of the de-
posits paying per cent Of the
paving accounts will intrude itself
with more persistency in the future.
These are days when banks paying
interest on checking accounts-and
practically every bank does to d
greater or lesser extent-are finding
II difficult to make both ends meet.
Banks Buying Liberty Bonds.
Money is accommodating in banks;
indeed 1t has been practically ever
since the buyers strike of some years
ago. There is no question but what
there is haze in the future, that 1t
ahead of the business interests of the
country. Merchants have been stung
again and again when carrying large
stocks, and they just will not do it
again-not now. They buy as they
need. the unreasonable weather be-
ing continual threat or worse. and
presaging clearing sales that will eat
up profits. So they are not borrow
ing; the public is not buying securi-
ties freely and where they are in the
market safety is unquestionably the
first consideration, with yield or re-
turn on investment secondary.
Under this stimulus Liberty bonds
have come into their own. Banks are
free buyers. They can not get their
money out to better advantage. Their
usual market for surplus cash, the
New York call loan field, is practically
closed to them by rates of ! "a per cent.
HINTS on to Secretary Mellon.
Every one is doffing his hat to Secre-
tary Mellon these days. At Cleveland
ne received a great ovation and every
where the bankers are giving him cred
IT for marvellous astuteness in his read
ing of the money market conditions and
possibilities.
succeeding issue Of Treasury certifi-
Gates, in that he has so beautifully
sensed the prevailing conditions in the
money market. His latest venture, the
2& per cent interest bearing certificates
Of Indebtedness, surprised bankers but
they knew the secretary was right, and
the entire sale of the issue confirmed
his judgment
And bankers have subscribed to this
issue. It's better than the call loan
has been responsible for renewed buy
ing in large blocks of Liberty bonds
Of the various issues, all selling at bet
te1 than par.
The Chapter at the Convention.