Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-08
MANY BANKS SHOW
READINESS TO HELP
SMALL CUSTOMERS
FinanCierS Meeting Here Are
Told of Advantages of
Personal Loans.
PAYMENTS ARE ON TIME;
FEW LOSSES REPORTED
Local Trust Company Distributes
Interesting Treatise on Bank
ing in Canada.
BY EDWARD C. STONE.


Many banks all over the country are
extending the glad hand much more
freely to the smaller customers, accord
ing to facts revealed at the recent
Central States Bank Management Con-
ference held in this city, An, 'ad-
dress by D. j. Leopold, cashier of the
First National Bank, Lebanon, Pa, on
'Liquidity of Small Loans, Through q
Plan OF Systematic Payments" is still
being widely discussed by Washington
bankers. That small loans more than
pay for the extra trouble they cause
wss the contention of the speaker who
presented convincing evidence to back
UP his claims.
Mr.. Leopold asserted that 100 &C
counts with a balance of $1,000, are
more desirable than one account OF
100000, as there is likely to be less
fiuctuation in the average balance OF
the 100 accounts than in the one &C
count. Further, the speaker said that
100 loans of 81 900 each are more de-
sirable to the average bank than one
loan Of 100000 on account of the risk
being distributed and the chances OF
losses being smaller. Concerning his
systematic payment plan for loans, Mr.
Leopold said:
Losses Are Insignificant.
: Elm determining the amount Of the
payments to be made, the applicant
Is asked how much he is able to pay
monthly. If we think his estimate Is
too liberal, we often suggest q smaller
amount, but try to impress upon him
the fact that We expect him to keep
his promise and for this reason sug-
geSt the smaller minimum monthly
payment. We make it point to in
quire particularly when payday &C.
ours and make the due date of the
note on payday or a day thereafter
In interviewing the applicant for q
new loan. We ascertain his actual
needs. The loan must be made for
some real constructive purpose"
The speaker maintained that small
loans do pay and also produce in
tangible compensation In the mature
of good will. He also quoted Stats
tics showing that q bank with 800
small, or so-called personal loans Of
$500 or less. amounting to $4,000,
had losses on those loans, in 1929, Of
only $47.I0 and in 1880 of $35. The
bank is located in Lebanon, Pa, in q
city of $4,000 inhabitants with SUBJ
urban population of another 5000 in
habitaIts. The loans were made prin-
cipally TO wage earners, many Of whom
are known to one or more Of the banks
employees.
"0Id Men" Again in Demand.
c. z. Talman, vice president Of thu
American National Bank & Trust Co
of Richmond, Va, made one Of the mos
Interesting addresses at the same con-
ference. His subject was THE I'm.
portance Of Proper Selection and De.
velopment OF Personnel" Among othel
things, Mr.. Talman said that during tht
wild 1929 speculation in Wall Street q
man over 40 years old could hardly FIND
q job. Only young men we're given the
new positions, brokers who were out X
get rich in a year or two, even II they
violated every principle of sound finance
Along came the break. 1t caused q
complete reversal of Wall Streets est.
mate Of the man over 30 years old. Ir
everybody's estimation he advanced 10(
per cent. Wall Street decided that, after
all, the financial district could not gel
along without the sounder Judgment
broader experience and needed conserv-
Atism of the older men.
The younger men also changed thetl
views, the Richmond banker said, and
decided it was unwise to try to make Q
fortune in one or two years, only to lose
tt all when q break came. The past yeal
has made men under 40 only too GLAD
TO take the advice of men above that
age. 1t has put conservatism and ex-
perience back on the throne.
Only IL Banks in Canada.
The Washington Loan 81 Trust Co. il
putting out an unusually interesting
booklet on Banking In Canada" writ
ten by Norman e. Towson, assistant
treasurer. OF special note Is the fact
that there are but IL chartered banks ir
Canada, which operate 1000 branches
OF which over $500 are in the Dominion
the rest foreign.
There Is no central bank of issue and
there are but two kinds Of currency
Dominion notes and bank notes, the
latter being general obligations of thu
Issuing banks but not specifically sc.
cured. The Canadian Bankers ASso.
citation Is quasi instrument Of Law
and possesses legal means of enforcing
its acts. Banks are not allowed TO en-
gage In business other than banking anC
are not allowed to make loans on rea
estate other than to take q mortgage
on real estate as additional security 70
a loan already made. Mortgage com
panies and trust companies, organized
70 serve these special fields, do not d
q general banking business.
On the other hand, says Mr.. Towson
the use Of the words bank, savings bank
banking company, banking house, asso
citation, institution, banker or prtvat
banker is prohibited unless authorizes
10 institutions incorporated and char
tered and subject TO the regulations o
the bank act. Banks are required u
furnish a statement of any "controlle'
corporation" or subsidiary.
The bank act leaves in the discretion
OF the management Of the bank tn
matter of its reserves, specifying onl
that 30 per cent OF such reserves a
the bank shall keep must be in Domin
ion notes. Because of the small numbe
OF banks it Is customary for bushes
men to deal exclusively with one bank
The strength Of the Canadian system
lies in its unity which Is shown by tn
fact that there have been but thre
failures since 1909, the last one beinI
about 10 years ago, Mr.. Towsol
concludes.
Cleaned in Financial District.
On the Washington Stock Exchang
yesterday so shares OF Real Estat
Mortgage B. Guaranty preferred sold q
61z and 20 shares of Mergenthale
Linotype moved at e7k. In the bon,
division $1,000 Washington Gas 8,
series B, sold at los, and $500 Capita
Traction SIS changed hands at 81 a.
Sales of the O. c. Murphy Co. chat
stores in February showed gain Of 2
per cent over February, 1880, and 10
the first two months Of the present yea
y gain Of rs per cent over the sam
N me p w d-siIver stoYas Yenor