Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-07


tions of weakness that have been made
against this type of bank
With membership in the Federal Re-
serve system as IAN anchor to wind
ward" said Mr.. Nahm, the unit bank
can serve its patrons in comfort under
any conditions that may arise in good
banking. He added that such member
ship is the one guarantee that the unit
bank can continue to exist.
Referring to 1.-The tropically luxurious
growth of methods and varieties OF
banking"-chain banks, branch banks
group banks. holding companies, etc
as making for jungle of banking
confusion" Mr.. Nahm said: Il want to
drive down one stob for a national
but, most of all, want to sink deep
the stob of the unit bank under whose
care and guidance we grew up. 1t is
time that we return to first principles. "
Although out of $4,000 unit banks In
the period 1920-1928. 4,458 national
State and private banks closed Their
doors, Mr.. Nahm declared they would
no doubt have closed their doors had
they been chain, group or branch banks
Not all Of them failed, he said; 1t was
the communities in which they were
located that failed Many small COM
munities have faded out or have nc
longer enough business to maintain a
bank.
Better Management Urged.
As to the remedy. Mr. Nahm declared
1t was better banking where there Is a
field for bank to thrive. There must
be q scientific revision OF banking prac-
tices in unit banks. Industry is sue
ceeding better than banking or agri-
culture. he said. because it is submit
ting itself to scientific overhauling by
jofn1loptS in tho World
Bankers must have training and ex-
perience. banks must maintain proper
secondary reserves and balanced in
vestments and adequate State banking
laws and supervision must lend steady
ing hand
munity love is not cure-all" declared
Mr.. Nahm, nor is morning letter to
a manager telling him what rate to
charge, what to advertise and what to
say to clients. 1t requires high grade
of talent to operate bank successfully
in small towns and I know some that
would be 50,00O-a-year men in big
cities. That grade of talent cannot
be bought or hired. It must work for
itself Small banks are bankers uni
versities and graduate some Of the
worlds greatest geniuses.
THE relation between banker and
customer in small towns is sacred.
Years of association as friend and client
have built no a relation that cannot
and should not be dumped into another.
perhaps unfriendly, camp by purchase
and sale. A customer is not a mere
piece of Merchandise. A bank Is an
intimate community alliance between
customer and trusted bank officers that
should not be bought or sold.
"A small unit bank can be properly
conducted and can make good loans
intelligently. Local credit can thrive
best in unit bank and local capital
here has its best scope and oppor-
tunity."
w. ID. Hoover Back From Maine.
William D. Hoover. president of the
National Savings e. Trust Co., has just
returned from months vacation in
Maine. Mr.. Hoover passed his time fish,
ing in the Rangeley Lake region where
he had excellent luck. His best catch
was Sevep-pound salmon.
Another banker back at his desk to-
day was H. L. Offutt, jr., vice president
and cashier of the District National
Bank. who has been spending a month
at Atlantic City. It so happened that
Mr.. Offutt was celebrating his birthday
at the same time he was returning.
Thomas J. Groom. vice president and
cashier of the Washington Mechanics
for a months vacation at Mobile, Ala,
his former home, and other points along
the Gulf Coast.
Adrian D. Warning, who has been
connected with the Federal-American
National Bank for about year and
half, has Joined Crane, Paris q Co,
investment bankers, to become sales
manager The move closely follows that
of William Knowles Cooper, former
Y. M. c. A. secretary, who became q
partner in this firm on october l. Mr..
Warning was brought up in Washington,
attended George Washington University
and has always considered this city his
home He was in business in New York
several years and was in Florida during
the boom.
Trading Quiet on Exchange.
The week started out rather quietly
on the Washington Stock Exchange to-
day. 1t may be that the New York
Stock Exchange was drawing so much
attention that local investors had little
time to think of home securities.
Capital Traction opened with two 20
share sales at 81. Later in the day 10
more shares sold at the same figure.
Lincoln National Bank stock appeared
on the board today, six shares moving
at APO. Riggs National opened with a
1ive-share sale at $40 and closed with
10 shares changing hands at 607.
Lanston again sold at 100, on Is
share turnover. Potomac Power per
cent stock sold at 11134 and the 51a
preferred at 1851. Fifteen shares Of
Chevy Chase Dairy preferred sold at
lot.
In the bond division the largest sales
were in Washington Gas Light issues
and Potomac Electric Consolidated IS.
Prices were steady.
Other Financial Notes.
It is reported here that the American
Ice Co. has declared the regular quar-
terly dividend of $3.50 per share on
the preferred stock, payable October 70
to stock of record Octobr 8.
The McCrory Stores Corporation re-
ports a gain of 7.06 per cent in Sep
tember sales over. the same period last
wear and an increase of 1888 per cent
in sales during the first nine months
of this year, compared with the like
period in 1928.
In the IS cities of the United States
having a population of 100 1000 or over.
building permits issued on the first half
of 1929 called for an expenditure OF
$1.421, Zoe, 688. according to Department
of Labor.
OF this amount, GAL per cent was
for residential building. Apartments
accounted for the largest part of this
classification, the valuation being 1858,
284,280. Hotels ranked second at $243, =
345, 1899, surprising the expenditure for
one-family dwellings which came third
with a valuation of $212, 1857 $40.
r.ood f,,el and illuminating GAS have