Evening star., 1925-08-02
Y nLue to District
Accentuated in
Special Report.
SchiuuOne,s Bank
Viii Celebrate Its
Birthday.
BY CHAs. p. sHAEFrER.

or combination of events held hereto
fore.
Mortgage companies In the past
have performed a rather thankless
task here. Several years back they
sprang up here. there and everywhere
almost overnight. and usually were
started by men lacking In experience
and commendable purpose to make
their lot worthwhile mission. AS a
consequence many people, but mainly
the uneducated In matters financial,
lost considerable money. All this is
now history. Intense educational
campaigns conducted for the gullible.
the inception of the Better Business
Bureau and caustic magazine and
newspaper articles brought about an
almost complete determination Of the
menace.
Valuable Help In Building.
In the report OF the committee on
commercial trade activities submitted
at the recent convention by Robert
V. Fleming. vice president OF the
Riggs National Bank, that section of
the report devoted to finance and
mortgage companies and prepared by
Fernand Petit, cashier Of the Citizens
Savings Bank, found 1.-The Companies
are certainly lending a valuable help
toward the development OF building
operations in the District Of Colum-
bia and have made IL possible for the
builder to make turnover. thereby
aiding In a continuity of operations to
meet the evident demand for homes"
Exhaustive inquiry made by the
special committee centered on three,
any one OF whose paid-in capital and
bined total paid-in capital and sur
plus Of the combined total OF twenty.
odd doing business here a few years
ago. These companies, while not
called by name. were the National
Mortgage and Investment Corporation,
the Mortgage, Bond and Guaranty
Corporation and the Real Estate Mort
gage and Guaranty Co.
Methods Very Important.
The principles under which mort.
gage compa MES are operated are
very important part Of the CONNER.
oial banking system Of today. super
seding by scientific operations the
unique position OF the individual
money lender. The committee found
that these companies, organized by
men Of financial standing and having
broad experience In the field OF their
speciality, were in reality the offshoots
OF banks and by virtue of this picked
The prominent District companies
were found to enjoy an excellent
credit rating at the banks. A sur
vey of the principal companies pres
ent BORROWINGS indicated that they
are at this time obtaining additional
capital through the medium OF bank
loans, which means OF obtaining ad-
ditional capital to meet their needs
is undoubtedly more profitable. it
being possible for them to hypothe-
cate their real estate notes and bor-
row against the same on a basis Of
8 per cent. Further report was made
that none of the companies were ex-
tending their borrowings beyond
their reasonable requirements. and
this far below the credit limit al
lowed.
This report, an analysis of a branch
Of one OF the biggest industries in
this city, namely the real estate field,
by acute bankers and business men
who advance the money to carry on.
should 60 long way in restoring the
we'll meaning mortgage company to
the prestige and position 1t really de-
serves.
District Deposits Gain.
Deposits of district banking insti-
tutions gained s28,5s6.461 during the
fiscal year ending June 80 last. ac-
cording to recent reports prepared for
the controller of the currency. Onicial
compilation OF these reports show
that on the last day of June. this
year, there was a total OF $229,632,-
527 deposited in Washington banking
houses as against only $2o1, ,036,066 on
the corresponding day OF last year.
National banks, on June 80, 1924,
had deposits of $i04, ,25l ,065, whereas
this year they had increased to $780,
150,208. showing a gain OF $15,S99,-
142, or 56 per cent Of the total gain
shown. Savings banks. by virtue Of a
gain from $28.s4s.282 in 1924, to $32,-
692 ,e32 this year. were responsible for
13 per cent of the total gain, while
the remainder. 81 per cent, was es-
tablished by the trust company Sec
ton, which grew in deposits from
$s7, ,s3s,71s on June 80, 1924 to s76,-
790,287 at the end of fiscal year 1925.
The number of reporting institu-
tions during the year under discus
sion failed to show material change.
There was a decrease Of one national
bank, the Standard, taken over by the
District. while the Central Savings
made its debut, the latter being offset
by the discontinuance Of the North
west Savings Bank, which was alb
porting on June 80 last consisted of
l3 national banks. % savings institu-
tions and trust companies.
Bank Notes Anniversary.
The fourth anniversary celebration
Of the international Exchange Bank.
begun yesterday morning, will be
eliminated today by street parade
followed by picnic rendered the
banks friends at Riverdale, Md.
1t was on August 1, 1921, the In
ternational Exchange first opened it's
doors, then an obscure vehicle with
only $47 900. Under the able tutelage
Of Joseph Schiavone, who is q real
credit to the city in every respect,
the institution has grown by leaps
and bounds until 1t is now on a def
mite dividend basis of per cent, has
deposits In excess of $750,000, re-
sources Of around $S50.000, and a
sizable surplus and undivided profits
account.
The growth of the institution is all
the more remarkable when consider.
alton is taken of It's location, at Fifth
and III streets northwest, supposedly
a barren sector. and the fact that its
patronage Is drawn mainly from the
local italian colony. although business
Is solicited from every class. In ad-
dition a steamboat ticket agency is
frf