Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-15
BY the Associated Press.
BY I. A. FLEMING.

BY /. A. FLEMING.
In all probability the controller Of
the CURRENCY will issue call for state
rnent of condition of national banks
as of December 81 of this year. This
has long been the custom Of the con-
troller and also of superintendent OF
banking in the several States as well,
in order that a concise and correct
analysis of the banking condition OF
the Nation may be made at the close
of the calendar year.
It is also almost certain that the i'm
portant items Of demand deposits and
savings deposits will both show a Sc
we're loss. if not one of the most serious
losses on record.
OF course the crash in New York
stocks may be charged as the cause OF
losses directly. although the taking out
of $500, 000,0 900 Christmas savings from
the various banks that "clubbed" IN that
line of business and the heavy pay
mentS of dividend and interest &C
counts will help swell the total decrease
Borrowing on Insurance.
Borrowing on life insurance policies,
in MANY cases giving them up at sur
render value during the period when
traders were making frantic efforts TO
meet margin calls of excited and scared
brokers and endeavoring, in many cases,
to take their securities away from
brokers entirely, was enormous.
Borrowing Of this character also took
millions out Of the banks. So heavy were
the drafts that life insurance companies
had to go into the borrowing field to
care for the wants of their embarrassed
policy holders.
When the number of great life insur-
ance companies are considered the enor-
NOUS amounts of this class OF borrow
ing may be the better understood, out
ali attempted estimates would be Iool-
ish in the extreme.
II NAV readily be imagined that be-
fore borrowing on ones life insurance
the cash in bank would suffer severe
drains. Brokers had been calling for
almost prohibitive margins for some
DAYS, another cause for reduction IN
Today bankers are analysing all
loans" very carefully and accommodat-
ing requests that they consider con-
sentative and not speculative. Many
are also analyzing their investment &C
counts with varying degrees OF regret
or satisfaction as the case may be.
Roasting Bears.
Said Representative SABBATH. the Chi
caUo man. accredited to Illinois: Il
ASK of what possible good or aid are
these men that are permitted every
few years to destroy millions OF men;
ruin industry. destroy STABILITY, ano
bring about destruction, not Only %
millions Of dollars, but even scores OF
lives?" -. l.
He was referring to the recent de-
bacle in stocks, and promised 10 ao-
vocate a tax on bears short sales. Here
a proposition!
Code Of Business Ethics.
r pierce Riddle director of the per-
sonnet of the American Security d
Trust Co, is the author of neat little
pamphlet in the form of a small book
setting forth the duties OF each en-
ploye of the institution, In the plalnest
Of English, consise-and simple. with
the use of this code the employe fnds
his duties outlined so definitely that
there is little need for asking questions.
Two sections have to do with the
treatment of customers" and tine teie-
phone" which are especially instructive
to the employe. ,.,-
pamphlet have been given wide circula-
ton through requests for copies. Re
quests have been received at the trust
company for copies from business nrms
in 81 cities, in Is States and Canada.
one firm asked for so copies, which
were furnished by the trust company
and almost daily requests are being
noted.
Financial Possibilities.
Proposed change in the Federal Re
serve act, plans for the enlargement
of the branch banking systems OF the
States, for the establishment OF laws
providing for holding companies and
bank mergers, with the intent OF giving
greater rights and privileges to national
banks. that they will be induced to re-
main in the system, rather than sur
render their charters and join State
Banks of smaller cities and country
towns are up in arms to fight for their
preservation against being swallowed
bv larger institutions or taken over by
holding companies or yet merged with
a larger institution.
The matter of holding companies,
generally being urged at this time, Is
new TO the lawmakers and Will be dis
cussed in all its phases.
Representative GoldSborough, men,
her of the committee on banks and
banking of the House, in reply to a
question as to his position on the hold
ing scheme had this to say:
I'VE should stop them If we can.
There has never been any olSpoSlClon
on the part of the city banks to take
over the country banks until recently.
"The whole question Of holding COM
panies is so ne what neither the State
legislatures nor Congress has had an
opportunity to enact restrictive legis-
Those advocating an extension of
branch banking privileges base their
argument upon four principal grounds:
First, that national banks are sur
rendering their charters in favor of
State charters in order to get branch
banking privileges; second, that branch
banking would tend to stop group bank
ing; third, that the funds available
in the country bank are not adequate
to take care of the rural business;
fourth, that the personnel at the head
of the country banks are not of a
caliber to so conduct the banks Os
to prevent failures.
"The relative resources Of national
to State banks have been practically
constant since 1922, except that the
merger tendency of last Spring and
Summer, having practically no rela-
ton to branch banking, has caused a