Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-21
State University to Assist in
Study to Benefit Banks and
Their DepoSitors.
LARGER PUBLIC SERVICE
is ALSO HELD POSSIBLE
Trading on Local Exchange Lively
Yesterday-Many Large Concerns
Soon to Pay Dividends.
BY EDWARD C. STONE.

Extended research into banking con-
ditions is planned by the Virginia
Bankers Association during 1881. 1t
is hoped facts will be unearthed that
will be of great value not only to
Virginia but to every other State in
the Union. The search for new bank
ing information is to be conducted by
a special committee, which has already
been offered the closest possible CO.
operation by the economic department
of the University of Virginia.
Thomas C.. BouShall, chairman of
the committee and president of the
Morris Plan Bank of Virginia, has out
lined in the Bankers Magazine what
the committee hopes to accomplish.
The research aims include:
a Research into the history, cause
and results of all bank failures in Vir-
ginia with view of so presenting these
ascertained facts that member banks,
their officers and directors may be able
to recognize within their present or
CARNATIONS such danger signals as ap-
peared in those banks Of the past.
Would Also Aid Customers.
90 Dun reports some 1000 failures
every month occurring in the United
States. Virginia has its proportion of
these failures. Every such failure usu-
ally absorbs part of the profit of some
Virginia bank or even some of its sur
plus and sometimes its capital. 1t is
not enough to stop at the causes Of
failure in banks-research must go on
into the causes of failure among the
banks customers.
IS. The first two items of research
are directed at the elimination of error.
The next item is of like nature and
of equally vital essentialness in bank
operation. This is the subject of
profit bank administration, and here
we seem to come into close proximity
to the American Bankers Association
efforts, but here. perhaps, is an even
better illustration or justification for
q bank research effort limited to a re-
stricted area such as Virginia.
New Legislation Is Possibility.
"a The fourth large subject of bank
research promising benefit to the asso-
citation membership is that of aScer-
tanning from careful study in all parts
of the country. abroad at home and,
possibly, in other fields what new,
profitable services the banks can offer
to their customers. This study would
of course, be related to existing laws
governing State and national banks
with a view to recommending intelli-
gently such necessary statutory changes
as might be required to make possible
such new services. The authority of
able research would very probably in
sure such legislative action promptly by
reason of presenting ascertained facts
as opposed to evolved opinion" Mr..
Boushall says.
Liberty Bond Drives Recalled.
Interpretations of Federal Reserve
Board Policy" by Benjamin Strong, late
governor of the Federal Reserve Bank
of New York, new book, edited by
w. Randolph Burgess, deputy governor
of the same reserve bank, recalls in a
most fascinating way the enormous
financial tasks connected with the va
riouS Liberty loan issues The book,
published by Harper &c Bros, contains
speeches and writings which bear on
the policies and decisions connected
with the actual establishing Of the
system.
In an address to the four-minute
men. Mr. Strong showed an amazing
knowledge of the Liberty loan work
to be done and the way it should be
carried out In New York the Liberty
loan literature had to be printed in Is
different languages. During the third
loan. $4,000 people in that city SUBJ
scribed $4,000. 900 for $50 and 800
bonds, to be paid for at 81 and So a
week.
On one of the drives. Mr.. Strong did
some odd figuring on New York's quota
alone. just to show the immensely Of the
job facing the workers and the banks
He found that the bonds, if placed on
end, would reach from New York to
Chicago and 1000 miles beyond. If
placed one on top of another. they
would have made pile 2 miles high,
weighing 23712 tons.
Mr.. Strong also was one of the first
bankers in the country to stress the
idea that the bonds should be sold in
small denominations to the greatest
number of people possible, rather than
by millions to a small group of very
rich citizens. Every page in the book
shows how lucky the New York Re-
serve Bank was to have man of Ben
jamin Strong's ability and energy at
its head during some of the most siren
uous financial days and years the coun-
try has ever known.
Active Trading on ID. C. Exchange.
Trading on the Washington Stock
! Exchange Saturday was unusually
active, interest being about equally di-
vided between stocks and bonds. Fiji
teen issues on the local board are now
being quoted ex dividends and will
make dividend disbursements in few
days. Yesterdays sales follow:
Washington Gas IS "A"-$2,0OO at
102. $500 at l02.
Potomac Electric 5lz%5 pfd.-l at
1855, 10 at 1878, 5 at 1878.
Washington Rwy. g. Electric pfd.-5
at S7h.
Federal-American Co. COMIC at
28h, 10 at 20.
Lanston Monotype-l0 at l02.
Merchants Transfer g. Storage pfd
loo at 93A.
Peoples Drug Stores pfd.-2 at 90.
Real Estate Mtge. g. Guar. pfd.-l00
at ga, 100 at 6i2.
Merchants Transfer 81 Storage pfd-
100 at SO, 100 at 93
Washington Rwy. g. Elec. pfd-$2 00C
at 81, $1,000 at 81. 81 900 at 86%
1000 at 8634, $1,000 at 86%.
Washington Gas 4l2s-$1 900 at 98$4
Business Law Still Working.
Supply and demand, the old patient
who Is found ailing badly in every
crisis with which we meet, is experience
ing the same treatment, says the
Financial World, that he has had tc
undergo in similar periods in the past
Numerous doctors spring up with
especially designed panaceaS to cure
hin speedily of his anemia. The pa
tieht simply has been oyerfed by over
production at a time when under
consumption would not permit his di'
gestive organs to function properly. HI
will get over this indisposition without
any dosing, and probably long before