Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-02
"a BANKS DECLINE
VETERAN LOAN ON
BONUS CERTIFICATE
Only One Holds Out Hope,
After Regular Customers
Are Taken Care Of.

A reporter for The Star, an ex-
marine with nearly two years over
seas service, vainly went the round
of "a Washington banks for two days
before New Year to see If he could
arrange a $50 loan on an adjusted
service certificate.
Representing himself as friend
less ex-service man temporarily out
of a Job, his purpose was to see IL
it were possible for an unknown vet
eran without bank account to bene-
fit from the bonus to meet an emer-
gency that could not wait. Armed
with what he himself believed was
a bona fide form of collateral secu-
rity, the reporter soon found that the
banks, with one exception, had no
use for his Government-indorsed
security in the hands of one who had
no bank relations, and he never once
got far enough along in his negotia-
tions to be asked to produce his
Identification papers.
Surprise Awaits Veteran.
Turned down by one bank after an
other, like a good marine, who never
knows when he is ''out," he came up
smiling for the seventeenth time. His
faith in mankind was somewhat
bruised by the discovery that banks
generally considered his proffered col
lateral, even in the hands OF an un-
known customer, a scrap OF paper,
a worthless tangie of red tape, unsat-
Z al
Souarinx his shoulders, nevertheless,
he advanced orce more to the assault
or, the second day. His progress on
street car was arrested by the name
of a bank he had never seen or heard
Of before. Alighting, he went into the
bank, and there he received the shock
of his life.
Walking up to a man, who turned
out to be the president OF the bank,
the ex-martne spoke bluntly to the
point:
Seventeen banks have refused me
a loan on a soldiers bonus certincate.
7 reckon there's no use asking here.
I'm not begging for a loan. All
want is a chance to borrow some
money on 4 perfectly legitimate Sc.
curitv. like any other business loan.
The ex-marine had played poker In
his day. but he couldn't read the
bankers face.
lust why did these II banks turn
YOU DOWN. asked the man who sat
across the desk.
Like Liberty Bond.
"Recause I was not a regular custom
ar some because the loan would be
oroftless and others because they con-
sidered the certificates as, next TO
worthless for banking purposes. the
would.be borrower replied.
He forgot to say that one had de-
clared resentfully. Congress just
passed the political buck to the banks
and the banks are not going to stand
for it,
II was then that the veteran, who
had become a little hard-boiled by that
time. received a shock. 1t fell like
"dud" on unbelieving ears.
That certificate Is the best collate-
raj i'm the world" he heard this bank
err saving. "Its backed by the prom
ise of the United States Government
to reimburse the bank in case OF de-
fault. That certificate of yours is as
good and safe a collateral as a Liberty
bond
well, you're the first person I've
met who seems. to think so," said the
more hopeful borrower. Can l get
a loan here?"
"As soon as this bank takes care
of the service men who are its regu-
lar customers" he was told, you can
come back here and we'll lend you
up to 80 per cent of the loan value
of your certificate. All we ask Is
that you be identified as its legal
owner.
Customers Come First.
''It will be the policy Of this bank
after January 1 to loan on bonus
certificates so far as our resources
permit. OF course, we have to look
after our own customers first. But
If can get 1000 service men on our
lists 1t will mean just that many
boosters. It's good business. There
may not be so much profit in handling
these certificates, that is true, bur
the security. is as sound as you will
find anywhere. don't know just
when we will be able to make an
outsider a loan, because we don't
know yet just how many of our own
customers will be applying for loans.
Continued on Page 8. Column So