Evening star., 1927-09-04
BY I. A. FLEMING.

sure to be realized, they are not as
attractive to the man of moderate
means, who is compelled to buy on
margin and to carry his shares with
brokers or bankers, paying therefore
the usual 6 per cent interest.
This may be costly, for the high
grade shares are usually selling out
Of proportion to return. Most of
the sales Of bank shares are of small
lots, rarely over 10 shares. Riggs
National shares, selling around $500.
pay just 3 per cent, which make on
10 shares an interest charge of $3.50
annually in excess of the dividend
received, and where the purchase of
bank shares is of larger amounts the
interest is proportionately greater,
less interest on the amount of cash
paid down.
Investments in these shares not al
ways are profitable. There have been
instances where bank shares consid-
cred very valuable have slumped
sadly and there are investors in this
town who have suffered through the
aftermath. %
The national banking act makes
holders of NATIONAL bank stocks as
sumo a double liability in the event
of anything going wrong. so that an
assessment may be necessary in
order that the depositors may receive
their money.
Investigate and Ask Questions.
1t is very good time right now
to ask your banker, to investigate
and to ask the Better Business Bu-
reau before buying bank shares
just as it is always a good time to
investigate when contemplating buy
ing anything.
If you wish, after investigation, to
buy bank shares, ask your banker for
the loan and indicate the security.
They will place your order, or it
may be given to your broker.
Almost any bank stock on the list
can be carried on 20 to rs per cent
the, less the interest charges.
There have been many reports of
orders being placed in this city by
outside capital-Baltimore and New
York-and it Is just possible that
some shares have been taken by cor
porations for long pull-10 years
but no even fairly large amounts
have been sold.
Elsewhere in this section, under the
caption, "The Year to Date on the
Local Stock Exchange" is a table
giving the sales of all securities on
the local Stock Exchange for the
week ended Friday night and for the
year to date.
A study of these figures will DEM
onstrate the comparative inactivity in
bank shares.
The Tenth Commandment.
Not relating to any affection for
your neighbor on a par with your
self-love, but the tenth of a list of
commandments referred to in this
column as part of a code of West
ern banker.
1t reads, Cooperate with other
making banking a more efficient and
a safer business
Harry V. Haynes, president of the
Farmers & Merchants National Bank,
one of the foremost in pushing for
cooperation and active in the Clear
ing House Association, has this to
say of the great cooperation of the
banking business in the City of Wash
ington:
"Over eight years have passed since
the first convention of the District
of Columbia Bankers Association
was held at Deer Park, Md. That
convention originated at a time when
there was not any apparent CO.
operation among the banks of Wash
lngton and was advanced by John
Poole, president of the Federal
American National Bank, his origi-
nal idea being that representatives of
the bank should go off to some
quiet meeting place. such as Ward.
man Park Hotel, and discuss the cur.
~
acquainted. The idea was taken up
and later discussed; objections were
overruled and the idea magnified to
such an extent, the advantages to be
gained were apparent from a distance.
The elimination of the discussion led
to the holding Of the first convention.
1T is recalled that at the time
preparations were being made for
the holding of the second convention
on the steamer Midland, I was quoted
as saying, after speaking of the origin
OF the first convention, that Lack of
cooperation, if not distrust, existed to
q marked degree, and with the result
that a proposal to bring about a
change in old-established customs
savored in the minds of some of
something that was about to be pulled
over to the advantage of the oriei.
nators of the IDEAS"
what change seems to have been
wrought. Now we have a beautiful
example Of teamwork among the
Washington bankers, each one shar.
ing in the responsibilities and the re.
wards for work well done, without
one 1ota OF feeling or jealousy. Com
petitors, yes, but friends always. Out
or the annual conventions and the
closer contact have developed many
committees of Importance and value.
There is the committee on trade
activities, working without thought of
the time it expends looking to the
gathering of information that will be
of general benefit to the banks in
common. There is the committee on
Treasury relations, which takes up
with Treasury officials and smoothes
out any complications which the mem.
berS encounter.
Best for All.
There is the committee on stand.
ardized banking insurance that has
set for itself task Of examining and
analyzing various forms of insurance
and reporting its findings so that the
member banks, without each using the
same time and effort, could know what
was best for them. There is the COM
mittee on law and legislation, the
duties Of which are very exacting,
looking after the interests of the
members Of the association in a way
that could not be done singly by the
members. There is the committee on
Improbable business, and columns
could be written on the achievements
of this committee through it's work
done for the member banks. With
all the competition there is for bust.
ness, it is marvellous how we'll the
banks share their information with
each other, each benefiting by what
they give and no one losing anything
by what is given. And there is the
protective committee, working actively
and diligently to cut down the anxiety
and responsibility of the members in