The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1927-01-06
BANKS SLOW To
GIVE. VI | LOANS
By RICHARD HATToN


Interest was manifested in local
banking circles today in the state
ment made In New York by Thomas
r. Patton. general counsel OF the
American Bankers Association, to
the effect that legal difficulties SUR
rounding the Identification or per-
sons presenting bonus certificates to
banks for loans as the bona ride
holders are largely responsible 1or
the slowness of banks to respond to
requests for such advances.
s'The law passed by Congress-,
said MIR. Patton, docs not compel
banks to make these loans. II only
provides that they may do so under
conditions set forth in the law anu
regulations, and 1t is natural that
many banks are puzzled In view OF
the many requirements when nave
been promulgated by the veterans
Bureau and the Federal heseFVe
Board and hesitate to make sucn
loans for strangers who are NOT Gus
toners of the bank or introduced
by customers.
The Veterans Bureau has pro
.vided a set of regulations. NO. 1oS'
showing to whom loans may De
made and prescribing a form OF
note and affidavit which must De
used. The affidavit must be by
An officer of the. bank and must
recite among other things that the
person who obtained the loan eVl-
denced by the above note is known
fo be the veteran in the adjusted
service certificate referred 70
therein -.
sPThis makes it necessary that
hanks REQUIRE the possessors OF
such certificates to identify them
selves as the veteran named therein
and such identity is not estaolfsned
simply by the possession OF Ger.
tificate which may have been Ioun0
or stolen. The Federal reserve
Board has also issued q set OF reg
ulations to entitle bank to re-
discount the notes.
s'In. view of all these facts, 1t 10
mot surprising that SO many banks
are refusing to make loans until
thew know . better what they are.
doing The American Bankers AS
ISOLATION has done everything pos
sible to provide information 10 mem
Der banks as to what Is necessary
to make loans on soldiers ponus
certificates. 1t published in the De'
cember American Bankers Assocla-
ton Journal an article by Gen.
Frank r. Hines. Director OF the
Veterans. Bureau, which contains
q general explanation. The saw
ings bank division of the association
has also published pamphlet con-
tanning data for banks showing
what the bank may do and what
It must not do in the making OF
such loans, 49,
Speyer and Company and j. and
W. Seligman and Company are pre-
pairing to exercise today the OPP
ton they hold on controlling In
terest in the Victor Talking Ma
chine Company. This option, OBJ.
tanned from Eldredge r. Johnson.
founder and president of the COM
pany, covers substantial majority
OF the company's capital stock and
provides that an offer be made on
the same basis to minority stock
holders within Is days after the
option has been exercised.
The decision Of the bankers to
exercise their option was revealed
In a call sent out from Camden,
N. j.. for a special meeting of the
board Of directors to be held to-
day.
Representative Frank r. Reid,
president of the Great National In
surance Company, of Washington,
D. c., issin Chicago on business of
the insurance organization. 1t is
expected that he will return to the
city In about a week.
According to officials OF the COM
pany. the newly opened Chicago
branch has been exceedingly active.
with results far beyond expecta-
fions. 1t is further stated that
1927 begins with the organizations
outlook as bright as the local eco
nomic situation Is sound.
Ralph Endicott has been appoint
Cd auditor Of the Washington Loan
and Trust Company by the execu-
tive committee of that Institution.
Mr.. Endicott has been with the
Washington Loan and Trust Com
pany since 1918. For the past year
he has been in charge of the book.
keeping department and. more re.
Gently. has been general book
keeper.
rulNAH0 GPAlMc