Evening star., 1925-11-22
EXCELLENT FINANCIAL RECORD
MADE HERE SINCE JULY l, 1907
Many New Banks Formed-Some Consultations
Practical Failures Without Loss to Depositors.
Large Gains in Deposits.
BY 1. 4. FLEMING.

y uiN -. l3oi. was Il not, SullTN udN
The kind Washington usually enjoys
during the summer months.
Around the banks there was a feel
ing of uneaSineSS. not unmiXed with
he dread of probabilities, for the rich
mans panic was just getting under
way. In other sections of the coun-
try banks We're refusing to pay out
cash over their counters, or endeavor-
-ng through suggestion and urge to
,'educe Withdrawals to actual neces-
ity, diScouraging speculation, every
lew enterprise or enlargement of old
and insisting on a general let-up in
expansion.
1t was case of our non-elastic
currency again bringing disorder.
Nth a serious slump on Wall Street
and the passing of many banks in
yarious sections of the country.
Currency was at a premium in
,learly all the large cities. bonds We're
still selling on low-interest basis
With a disastrous slump at hand.
1t was anything but a pleasant
condition for the banking and security
interests and was reflected to a
greater or lesser degree throughout
industry generally. although not at
.ecting the general public as greatly
as did previous panics.
Record of the Interim.
In the interim a period of prac-
tically Is years and months has
passed. 1t marks my connection with
financial Washington.
Consideration is given to the hap
penings in financial Washington dur
ing this interim. with a record that
has given this city position and pre-
aD,inanrn n financial fa -
greater than even its most enthusi-
astic Well-wisher every dreamed pos
siblc.
Records of deposits in local fiscal
institutions of July /, 1907, are not
available. but two years previous
banks of the city held si7,97S,000 de
posits; We're capitalized at Sl0,977 900,
with surplus and undivided profits of
St, 44S 900. with loans of S37 100000.
on September 2S last, the date of
the latest call by the controller of the
currency. deposits stood at 1925. .5S7.-
900. a record in the steady, rapid
growth that has been most marked
in the days since 1917. Surplus and
profits will appear later.
Larger Number of Banks.
During the interim under Consid-
GRAFTON many new banks have been
organized, some to grow in impor-
tanCe in their service TO the com
munity, others to serve a brief period,
longer or shorter. as the case may be,
and then to be "A matter of memory,
absorbed .hy other financial institu-
tionS or, facing failure, have arranged
for liquidation for the benefit of de-
poSitors, with shareholders left to
shift more or less for themselves.
Banks that have weathered the
storms. that were organized on sound
principles. that safely passed through
the strenuous days of 1907 and again
in 1913 and 1914-l6. and survived the
war. have reached a stage where they
may be expected to continue TO func-
tion and maintain their splendid rec
ords indefinitely.
Outstanding Happenings.
Outsta nding happenings during the
period considered included the merger
of the Home Savings Bank with the
American Security and Trust Com
pany, which occurred in 1919.
The former was "A savings bank IN
the central district. organized by B. r.
Saul and a few friends in 1899, and
enjoyed the distinction of being the
first bank to make a contract for ad'
vertising space in The Evening and
Sunday Morning Star, fact that Is
accredited by its founders with being
largely responsible for obtaining SlO.-
900 900 deposits during its 20 years of
existence on a capital at the close OF
it's career of 100000.
1t operated a number of branches
in good sections of the city and was
sufficiently attraCtiv TO bring the
equivalent of S400 a share in the
merger with the big trust company
Federal and Federal-American.
The Federal National Bank was
organized one night and nearly all
the stock was subscribed for when
books were opened the next morning.
1t was an otfshot in a literal sense
from the Commercial National Bank
when a large number of infiuentlal
directors objecting to the policy Of
control walked out and at once
organized the Federal, with John
Poole. former cashier of the Com
mercial, as president. The blow
temporarily Jared the Commercial,
but it bravely faced the music and
recouped steadily to its present
enviable position.
The United States Trust Co. was
orga nized in 1907, faced a varied
career. bought up under Mr.. Jordan's
presidency the Merchants & Me-
chanics Bank and branches and sew
eral minor institutions and operated
them as branches. In 1913, after
serious runs for three days it was
taken over by the Munsey Trust Co.
New Banks Formed.
The Merchants Bank succeeded the
Washington Southern and developed
into the 81 900, 900 Merchants Bank
x Trust Co.
The Munsey Trust Co. had been
organized a few years before with
a capital stock of S2,000,000, owned
largely by Frank A. Munsey Of New
York City 1t has been under the
management of Mr.. Pope continu
ously and has met with a measure
of success, increasing its deposits
and business greatly by the acquisi-
tion of the United States Trust Co.
Mr.. Munsey Immediately disposed of
the various branches of the United
States Trust Co.
The Franklin National and Dupont
National We're organized and later
the Exchange Savings occupying
quarters formerly occupied by the
United States Trust branches while
the main office of the latter operated
for some years by the Munsey Trust
Co. as a branch.
The Franklin National Bank has
grown steadily in Importance: the Ex
change was absorbed by the Mer
chants Bank and Trust Co. and also
the Dupont National. of which w
w. Spaid was president.
More Banks Started.
The Security Savings and CONNER
cial Bank; the District National Bank
successor to Harper & Co., and the