Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-13
BANKS TO DEBATE
CUTS IN INTEREST
Prince Georges Association
Not Expected TO Reach
Uniform Agreement.
By q STAFF Correspondent OF The Star.

| By STAFF Correspondent OF The Star.
UPPER MARLBORO, Md, June u.
Discussion of the proposed reduction
Of the interest rate on savings accounts
in the banks of Prince Georges County
is expected to feature the annual con-
vention of the COUNT Bankers Asso-
citation at Piney Point tonight. Annual
election Of officers will be held.
Change Of united action by the en-
tire county group is regarded es slight,
although all agree that uniform action
by the banks is desirable.
Interest Reduction Sought.
Most Of the banks are in favor OF
reducing the interest rate on savings
accounts from to 3ia or even 3 per
cent. This would be in line with action
being taken elsewhere in the country.
The banks of Washington have long
paid only 3 per cent on savings. while
those of Baltimore recently reduced the
interest rate from to 3i2 per cent.
The bar to united action on the part
OF the association in regard to chang
ing the interest rate is expected to be
furnished by one of the Marlboro banks
which will not agree to a reduction of
interest.
AS bank competition is more keen in
Marlboro than any other place In the
county, there being three banks 1T the
county seat, none is willing TO change
unless the others do.
Others Are Favorable.
In the suburban area the Southern
Maryland Trust Co., at Seat Pleasant
the Prince Georges Bank & Trust Co
at Mount Rainier and HyattsvilIe, and
the CltlZens' Bank of Riverdale are all
reported Is favorably inclined toward
the proposed interest reduction.
Action OF Baltimore banks tn reduc-
ing their interest rate TO 315 per cent
removed the contention, long advanced
In favor OF retaining the 4 per cent
interest rate, that reduction would
reSGIt IN depoS1tors sending their funds
10 Baltimore.
The only competition which the sub
urban banks would face should they
reduce the interest would now be from
building associations. However. build
association shares have been and still
90 pay a larger pcr cent of interest
than savings accounts.
Time Deposits Stopped.
When the banks Of. the country
started paying 4 per cent on savings
some OF them eliminated time deposits
u the interest Is reduced, IL is said
certificates Of deposit will again be
issued TO those who agree to keep their
funds IN the bank for definite periods
The only bank in Prince Georges
not now paying 4 per cent on savings is.
the Citizens Bank of Laurel, which has
no local competition, and has always
paid 3 per cent.
The Prince Georges County Bankers
Association. is not like a clearing housa
In that its action is not binding on
It's members. Hence there is a DOS
Slbinty OF some of the banks taking
individual action.
The proposed. reduction Of interest
on savings is regarded as timely topic
throughout Southern Maryland and was
heatedly debated at meeting Of Group
OF the STATE Bankers Association
at LeonardtoW4l Wednesday night. At
that time one bank, which has several
branches throughout the southern
counties, declined 70 agree to lower
the 4 per cent rate.
State Senator Walter J. Mitchell Of
La Plata is president Of Group 4, while
J. EnoS Ray Of Hyattsville, heads the
Prince Georges County Association.