The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-03-19
BANK CREDITS
DECLINE
BY RICHARD HATTON

banned in the Federal Reserve Bull
letin made public today the volume
pf hank credit outstanding. after
rapid growth during the later
months or 1927, decreased in Janu-
airy and February.
The decline. like the preceding Ad,
vance, was mainly in the banks
aoans on stocks and bonds, and par.
Hicularly in their loans to brokers
and dealers in securities. While,
however. loans to brokers by banks
declined. this decrease was offset in
large part by q growth in loans OF
this character made by other lenders.
30 that the reduction in the total OF
street loans for the two-month pc
riod was relatively small,
The banks commercial loans, after
continuing in January the decline
which had begun in the autumn,
increased somewhat in February. az
il usual at this season Of the year.
in response to increasing activity
in industry and trade. Money rates
in the open market continued to be
relatively firm, owing partly to in
creased indebtedness OF member
banks to the reserve banks caused
by an increase in the demand for
currency and q further decline in
the reserve banks holdings Of
United States securities.
Gold Withdrawals
There were also further withdraw
hls Of gold for export. In general. the
credit situation during recent weeks
has been characterized by the re-
lease from the securities market Of
d large amount Of bank credit, q
small part Of which was absorbed
by increased requirements for credit
by commerce and industry, but
most OF which was reflected IN p
decrease of the total volume OF
bank credit outstanding. ~
Reduction of loans obtained by
brokers and dealers in securities
from the banks amounted during
the last two months to about $dOUs.
OOO. 900. and reflected to the extent
Of 500 600 900 q decline in the re-
quirements OF brokers accompany
ing the recent decline in security
prices. The larger part Of the de-
cline, however, was due to the a1-
dition of about $40, 100000 to the
funds placed in the street by lenders
other than banks.
Educational Courses
washington bankers, and esps-
cfally members OF the washington
chapter, American Institute Ut
Banking. will be interested In q
statement made by President p. r.
williams. of the institute. upon his
return to Los Angeles after tour
of the country which brought him
to this city, to attend the annual
banquet Of the local chapter. Mr.,
williams is quoted BY West Coast
Service as reporting that Of the
81 900 young men and women en-
rolled in the American Institute of
Banking $4,000 are attending the
educational courses, striving for
scientific training.
Within short time, he predicts,
the executive council win proclaim
additional requirements to the stand
ard which will considerably raise
the certificate qualifications.
when we started educational
banking Is years ago we required
two semesters of training Of 30
hours EACH" said President Will
liams.
Now we require AZ hours of pre-
liminary in banking fundamentals
plus an additional four courses Of
~ hours each in commercial law.
negotiable instruments, economics,
standard banking.
by requiring this adherence to
2lO hours OF study, before awarding
our certificates, we believe that a
great service is being given to the
banks Of the country
Dividend Declared
The directors OF the United States
Savings Bank have just declared
their regular quarterly dividend of
Ia per cent, payable March 81. 1928.
The United States Savings Bank has
4 capital OF 100000 a surplus of
$780, 900, undivided profits of about
$125, 600, and total resources OF
nearly $4,000. 900.
With its removal over the past
weekend to temporary offices at
81 Wall St., New York, the inter.
national banking firm of Brown
Bros. & Co. leaves its old SO Wall st.
building, which it has occupied con-
tinuously since 1866.
The present visible supply of
securities appears substantially less
than at this season in any recent
year. New capital offerings for
January were 3S per cent lower than
the SAME month last year. February
offerings were also well under Feb
ruary, 1927, in nearly all important
classes. ANY recent hopes or fears
that the trend of interest rates was
about to reverse itself seem quite
unWarranted, and accommodating
funds which were held in allegiance
have now pretty well taken up what
ever surpluses investment dealers
carried over from record breaking
December offerings"
In this way, Halsey. Stuart & Co.
sum up present conditions in the
bond market in their quarterly re-