Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-17
INCREASE NLOAN
TOTALS IS NOTED
Morris Plan Corporation
Finds Hope in Expansion
of Credit.
Dispatch 70 N. star.

Special Dispatch TO The star.
NEW YORK. August i7.-n mass
psychology with its reluctance 20 spend
or to utilize the channels of consumer
credit has contributed toi the business
recession, then there is q decided shift
for the better apparent in industrial
banking statistics for the second quarter
OF 1881. It was announced today by
the Morris Plan Corporation of AM
erica, holding company of many large
Morris Plan Banks and companies
Loans made by 1Ol leading Morris
Plan banks for the three months end
ing June 80. increased 81, $50, 322 TO a
total of S47,I45. 6ss for the Quarter
bringing the first six months aggregate
to $50 ,66l 044 This increase was re-
garded by company oflcials as indi-
eating healthier state of confidence
on the part of the individual who
eustomarily uses industrial banking
facilities not only for the liquidating
OF old obligations but for the purchase
OF new products and commodities. This
Is also true Of the smaller merchants
and business men who have found il
necessary TO buy requirements and new
stocks during recent weeks after many
months OF cleaning out old suTpluses,
1t was stated.
Position Strengthened.
The Morris Plan banks continue to
strengthen their own positions as In
oicated by increases during the second
quarter over the first quarter in paid
In capital, surplus and undivided profits
and In greater reserves. Paid-in can
ltal in these l01 banks increased 3
per cent to q total OF $l7.545,s7s; sur
plus and undivided profits gained / per
cent to total of $l1,746,5l5 and re-
serves were increased Ia per cent TO
$o,o6S,S46. Aggregate net earnings In
creased from $488,679 during the first
three months of 1891 to S636.647 IN
the second quarter, a total Of SI,I25,326
for the six-month period
Inr1It accumulations on the part of
the public increased 5000, lOS in these
institutions TO current total of S92.-
92S,54S. This sum represents the sale
70 the public OF both installment and
1lH-paid Morris Plan certificates. IN
the II years Of Morris plan operation
no owner of these certificates has ever
lost dollar Of principal or interest.
IL was said, striking tribute to the
security OF character and earning power
as collateral, especially during unsettIed
economic periods
Requirements Cited.
That an increase in industrial bank
ing loan volume does not necessarily
imply greater distress" but to the con-
trary indicates an Improvement in cor,-
ditions, was explained by citing the re-
qurements of these banks which base
credit on character and earning power
/ Not only does such an increase mean
mat employment Is better in some Sec
lions, creating a greater number Of
i eligible borrowers, but 1t also indicates
| That these who have been steadily en-
| ployed are once again using their earn
ing capacity and productive ability to
| greater degree to secure IonQ-term
| credits
It was pointed out that during the
earlier periods of the recession MANY
| people were reluctant to employ bank
ing credit with its subsequent benefits
to both producers and consumers In the
fear that their future income might be
jeopardized by loss of work or that
actual unemployment made them in
! eligible as borrowers.