Evening star., 1925-04-26
" BANKING DEPOSITS
GAIN 27I PER CENT IN DECADE
National Institutions With 3O2 Per Cent, Regain
Average Lost by Trust Firms-ConUention
Plans.

issues which have been issued in in
fated mark and crown denominations
and not In American dollars.
Many of these circulars make much
of the fact that the German govern
ment has issued an order preventing
industries and private enterprises
from retiring certain obligations
with worthless currency. The ruling
holds that If these obligat tions are
retired then the price paid by the
corporation must not be less than Is
per cent of the gold value. In this
connection 1t should be borne in mind
that this does not mean private cor
poratfons are obliged to redeem Sc
curities. 1t is entirely conditional
Attention is also called to the fact
that 1t takes more than law and will
lngness to discharge an obligation.
Another Point Stressed.
Another point stressed in these cir
culars offering municipal bonds is
that 1t is customary for many large
Central European cities to secure
their municipal obligations with
actual property, such as warehouses,
wharves, forest reserves, etc This
is pointed out as a future guarantee
ing greater security behind these
bonds. Property securing a bond can
be claimed by the bond holders only
If the principal and interest is not
paid in accordance with the bond
pledged. The pledge in these in
stances, is to pay principal and in
terest in the old currency now so in
f1ated. 1t is true that many of these
bonds do have specific property
pledged as security which can be
taken by the bond holders in the
event of default, but there is no ques-
ton about the ability of these cities
to comply with the terms of the
bonds.
Interest and principal is being paid
and will undoubtedly be paid-in in
f1ated currency. One circular recently
brought to the attention of the Bet
ter Business Bureau points out how
the municipal bonds of the City of
Vienna are so amply secured by city
owned property, and offers these bonds
Tor sale at prices ranging from $1.50
to $3.50 per 1000 crowns. One thou
sand crowns today is worth about IA
cents and the Vienna government is
retiring their municipal bonds as and
when they mature in inflated crowns.
The purchaser of one of these bonds,
then, at $1.50 or $3.50 could carry il to
maturity and receive 900 crowns from
the Vienna government, which he
may exchange for IA cents.
The Seventh Annual Convention Of
the District of Columbia Bankers AS
sociation will be held at Hot Springs.
Va, June 25, IS, 81 and %.
Many problems of great Importance
to every bank in Washington will be
discussed and acted upon at this con.
vention.
The business sessions have been ar
ranged for Thursday, Friday and Sat
urday, and will close sufficiently early
each day to enable the delegates TO
devote the afternoons and evenings, as
we'll as the entire day Sunday, to the en-
joyment of the wonderful recreationaI
facilities which this famous Virginia
mountain resort has to offer. There will
be abundant opportunity for golf, ten
mis-, motoring, swimming, horseback rid.
ing, card parties, dancing, and Sat
urday night there will be a BANQUET
for the delegates, for which a special
entertainment program is being ar
ranged.
1t is hoped the delegates will brinf
their wives, daughters and other mem.
bers of their families and friends to
participate in and contribute to the
general good time.
A special all-Pullman train Wiz
leave Washington Wednesday eve
ming, June "a, at $50, arriving at
Hot Springs in time for breakfast
Thursday morning. Returning, th9
special will leave Hot Springs at 1888
SuHody evening, June ZS, arriving "
washington by o'clock Monde
morning.
Because of the reduced rates for hotel
accommodations and railroad fares,
which the committee has been able
to obtain, the entire cost of the trip,
Including Pullman, will be only SIS
per person. Compartments both ways.
accommodating two, $6.75 per person
extra. Drawing room both ways, ac-
commodating three, IS per person
extra; two only, 1915 per person extra.
Since accommodations are being pro-
vided for maximum of. 200, 1t is
suggested that reservations be made
early. Reservations and remittances
should be sent to B. A Bowles. chair
man of transportation committee. care
Of Potomac Savings Bank, George
town.