Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-21
Observation-Disclosures.
AID CREDIT PLAN
Ten More Local Institutions
Vote to Subscribe in
National Pool.
BY EDWARD c. STONE.


Ten more Washington banks have
voted their quota subscriptions to the
big fund being raised by the National
Credit Association to strengthen me
banking situation all over the country
by freeing frozen loans and placing more
money in circulation. The pool Is
being built up at an amazing rate IN
everv section of the United States. SO
far as Washington is concerned, 1t is
expected that the banks Will turn IN a
100 per cent report at the special joint
meeting of the Washington Clearing
House Association and the DlStrlcC
BANKERS Association, to be held next
Friday afternoon.
Local banks which have voted their
subscriptions, reported since yesterday,
include the National Bank of Wash
ington, Columbia National, Commercial
National, National Metropolitan. Amer
lean Security & Trust Co., Washlng-
ton Loan & Trust Co., Security Saw
ings g. Commercial, Second National:
Anacostia Bank and the Bank OF
Brightwood
Banks which have previously voted
their full share include Riggs National,
Franklin Liberty National Capital,
Departmental. District. National Saw
ings & Trust, McLachlen and WASH
ington Mechanics. The Bank Of Com
merce e. Savings is expected to JOIN
the procession late this afternoon and
the Lincoln National will subscribe to
the big bank pool at meeting OF the
directors tomorrow Several other
meetings are scheduled in the very
near future.
President Robert v. Fleming of
Riggs, organizer of the washington
unit, is delighted with the splendid
response.
d, C. Insurance Sales Lower.
New insurance sold in Washington in
September was per cent lower than
the business done in September, $780,
according to reports from Hartford re-
ceived today Sales for the United
States as a whole were down IL per
cent. Sales, however, continued the up
ward trend noted in August, September
being the second month in succession
that figures for the month had shown
Improvement over the average for the
preceding months of the year.
Maryland made a particularly good
September showing, new life insurance
written being per cent ahead of Sep
TENDER, 1890. Maryland was one of
only five States which did more bust
ness than in the like month last year.
South Carolina headed this list with
per cent rise, the others being Massa-
chusetts, New Hampshire and Maine.
The figures indicate that Eastern
States are experiencing the best con-
ditions for sales. The New England
section was only l per cent below last
year and the Middle Atlantic States
came next with per cent decrease.
1.-TWO Pct. Money; 10 Pct. Stocks"
An anomaly in the present situation
In the securities markets has been
n Z Aofo
of McNeels Financial Service of Bos-
ton. who states in a recent bulletin:
In 1929 we saw investors throughout
this country running to get all the
money they could command. and all
the money they could borrow even at
as high a rate as 10 to Is per cent and
turning it into stocks yielding only l, 2
or per cent. Recently We have had
the other extreme of the cycle-the
Nationwide rush of investors to turn
their securities into cash, when those
securities were selling to give an income
yield of 10, Is or 20 per cent, and when
the cash they were receiving for them
would bring only l or 2 per cent. On
the one side was overconfidence run
riot. Recently we had a Nation in the
grip of unreasoning fear. and that fear
was registered in prices of securities"
Trading on d. c. Exchange.
Strange to relate there was no trad
ing on the Washington Stock Exchange
when the list was first called off by
President Hillyer After CALL however,
business picked up. The first transac-
ton was in Washington Gas 6s, series
A. $500 selling at 1905.
The next bond sale was 81 900 Po-
tomac Electric Consolidated SIS at 1927,
followed by ST 900 Washington Gas SIS
At 1914 and.a transfer of 81 600 Wash
ington Gas IS, series A, at 1909.
In the stock division, small lots of
Potomac Electric Power 512 per cent
preferred came out at 1861, while the
days session wound up with 18 shares
of Mergenthaler Linotype selling at IS,
the same as other recent sales.
Washington clearing house figures for
today, S3,875, 443.01.
Heard in Financial District.
Francis G.. Addison, IT., president Of
the Security Savings & Commercial
Bank, was one of the speakers at the
opening session of the personal finance
convention in this city today.
Bankers here were much interested
In the National City Banks announce
ment that, effective November /, the
rate of per cent per annum on COM
pound interest accounts will be restored.
This is an increase from the 2 per cent
rate which became effective Septem-
Der l. Interest will be compounded IL
times a year.
Bank officials here believe that the
huge banking pool now being formed
has already had beneficial effect in
other parts of the country in improv-
ing conditions. although no money has
yet been loaned One of the best
proofs of this claim is the renewed
strength in New York bank stocks.
1t is certain that the new National
Credit Corporation will scrutinize APP
plications from banks with the great
est discrimination. Frozen loans which
are admittedly bad risks, it is assumed,
will not be accepted Frozen loans
which are considered good in the sense
that they can positively be liquidated