The Washington times., 1928-04-13
BANKER FIGHTS.
INTEREST
GUT

nv RICHARD HATTON

Nv RICHAtD kAAAAUN
Onnosition to reduction Of In
terest paid depositors, as proposed
~ some bankers to meet the situa'
ton caused BY diminishing margins
81 hank earnings, is expressed by J.
r. Sartori, president Of the Security
Trust and Savings Bank, Los
Angeles, In an article in the cur
rent issue Of the American Bank
.-ers' Association Journal.
Something Of the same view y
taken bv many washington bank.
ers who believe that in spite OF
strong reasons why q reduction o.
interest would be justified, these
are outwelghed by the Importance
Of increasing savings accounts ano
that everything possible should pe
done to encourage the SAVINGS ue'
positor. In fact, this very matter
was one OF the topics discussed at
the recent regional savings con-
ference at Richmond where the
conclusion reached was that condi.
fions in this section were so sound
that there would be no justification
for 4 reduction OF interest rates On
savings deposits at the present
time.
One Of the easiest ways to meet
the problem of diminishing earnings
BY banks, according to Mr.. Sartori,
Z would be to reduce interest paid
depositors, but it might prove the
most inopportune. for reduction
would challenge depositors to trans
Ter their savings to some financial
institution not affected by the re-
duction. where they would find e
cordial welcome.
In concluding his statement. Mr..
Eartori says:
"If interest is to be lowered, a
good place to begin would be COM
I. mercia1 depositors, for il any ac-
count has been misused since the
war It is the commercial account,
on which liberal interest is paid.
Commercial depositors are receiving
interest on temporary and fluctuat-
ing balances which prior to the war
were left In banks without interest.
In this case q reduction can be par
TALLY justified BY the low rate on
commercial loans.
Credit Service
The credit department of the
National Association Of Credit Men
has Just issued q pamphlet explain
ing the method Of. procedure to be
followed in filing formal requests
for investigation which states that
: it is imperative that the complain
ant understand the geographic
structure Of the department. The
( information contained IN the
pamphlet shows where resident
operators are stationed and where
the divisional headquarters are
located. and under whose super
/ vision these operators function.
It further states: There Is APP
parently great deal Of confusion
Ia the minds Of those wishing to
use the department in the matter
of procedure and this information is
for the benefit Of our subscribers
and members who wish to place
before the credit protection depart
ment matters in which they are in
terested for advice and service"
Investment Trusts
Despite the expansion which has
taken place In investment trusts
IN the United States during re-
cent years a great future is ahead
of these companies, b. Aubrey
Harris, Of Harris, Mooney and
Company, investment bankers, said
before the Advertising Club Of
Baltimore. The numerous invest.
ment trusts, Mr.. Harris said, now
are raising new capital at the rate
OF 81 ,00O, 900, 900 annually. and there
il reason that this total will in.
crease in the future. The local
offices OF Harris, Mooney and Com
pany are in the Southern Building.
Underwriters Meet
An important meeting of the Dis.
trict Of Columbia Underwriters AS.
ISOLATION was held in the assem-.
bly, room of the 7. M. C. A. last
night at which Alan Maphis spoke
on Meeting Objections. Morn
nations also were made to fill
three vacancies on the board of
directors which viii occur by rea.
son of expiration Of terms in May.
Members Of the Washington Stock
Exchange yesterday pre- 8 e mt e
Charles J. Bell with handsome
silver punch bowl in commemora-
ton Of the popular bankers 10th
birthday and the conclusion Of As
years az a member Of the ex-
change. There was large attend
ance Of active members of the
exchange and many visitors present
when Eugene z. Thompson and
C. J.. Gockeler, as a committee
representing the exchange, made the
presentation.