Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-18
D. c. BANKERS RUSH.
PLAN FOR RAISING.
POOL FUNDS HERE
Clearing House and district
Association Issue Call for
Joint Meeting Friday.
PROMPT ACTION URGED
BY REGIONAL CHAIRMAN
Seven Local Institr ions Have
Already Voted Full Quota
II Subscriptions.
BY EDWARD c. STONE.

In the calling of special joint meet
ing Of the Washington Clearing House
Association and the District Bankers
Association, set for next Friday, further
steps were taken yesterday toward or
ganiZation of the Washington unit OF
the National Credit Corporation, which
is raising a fund of s5oo,o0O,O 900, or
more. to help banks throughout the
United States utilize their resources and
credit toward the better sterilization OF
financial and economic conditions.
Splendid progress has been made in
the past few days toward forming the
local banking group. The directors OF
seven Washington banks have already
the fund The banks which up to yes
terday had taken this action included
the District National Riggs, Liberty,
Franklin, National Capital, Depart
mental and Washington Mechanics
Savings Bank This is considered a
brilliant showing at least one local
bank having voted support to the
proposal even before any move mad
been made to establish Washington
unit
The call for Fridays joint meeting
was sent out at the request of Robert
v. Fleming. president OF the Riggs
National Bank. who was appointed re-
gional chairman for this city by John
NJ. Millers, jr., of Richmond, who Is the
Fifth Federal Reserve Districts director
in the National Credit Corporation. He
also appointed organizers in the nVe
States in this district.
In his letter Mr.. Fleming referred to
the action taken by President Hoover
in calling upon the banks everywhere
to mobilize their resources back OF a
national movement to improve conf
dence, mentioned the leading New York
bankers on the organization committee,
stated that subscriptions by the banks
of an amount equal to per cent OF
their deposits were requested and re-
ferred to Controller Poles hearty sup
poIt of the whole icea.
Chairman Urges Prompt Action.
Mr.. Fleming referred briefly to the
plan of organization in the fifth DIS
trict, and stressed his belief that the
local banks should do their full share
in the constructive movement to assist
in ending the depression which now
exists. He stated that only subscribing
members Of each group will be entitled
to elect the officers Of their associations,
loan committees. etc. The regional
chairman then urged every bank IN the
city at once to subscribe their proper
tionate amounts to the gold notes OF
the National Credit Corporation.
In his letter asking that the joint
meeting be called, Chairman Fleming
urged that Washington banks call spe-
ciai meeting of their directors, II no
regular meetings are scheduled between
now and next Friday so that the mem
bers of the associations may be pre-
pared to announce their subscriptions
at that time.
The call for the joint meeting was
signed by H. H. Mckee as chairman OF
the Washington Clearing House Asso-
citation, and Edward j. McQuade, presl-
dent Of the District Bankers Assocla-
ton. Both these bankers expressed the
belief yesterday that every bank IN
washington will subscribe to the fund,
this 100 per cent prediction being con-
Cured in by Mr. Fleming.
It Is considered here that the credit
plan is one of the most important
movements in banking circles that has
been instituted since the fall OF the
stock market in 1929. The fund will
make it possible to turn sound bank
assets into cash at any time, and Will
also make it unnecessary for banks
needing cash to sell bonds In de-
pressed market and take a loss on
them.
Treasury Will Accept Notes.
Secretary Mellon announced yesterday
that the gold notes OF the National
Credit Corporation will be accepted by
the Treasury as collateral to secure any
deposits of public moneys in deposit
taries designated by the Secretary OF
the Treasury.
The notes will be accepted at the same
collateral value now accorded by the
Treasury to commercial paper and
bankers acceptances, which, under ex-
isting regulations governing deposits IN
special depoSitaries. are accepted at gu
per cent of face value. The Treasury
regulations with respect to deposits OF
public moneys have been amended &C
cordingly.
cluded in the request for support for
the national credit fund national banks,
savings banks and trust companies. New
York City banks have already pledged
their quota of S150.000,000 toward the
fund and some other cities have al
ready subscribed their full amounts.
Banks Urged to Buy Bonds.
SUGGESTIONS were made at the Amer
lean Bankers Convention at Atlantic
r,itv that some of the banks in different
narts of the country are keeping in toe
liquid a position. For months lqulditI
has been one of the chief watch WORDS
IT is now felt that in some cases banks
are keeping more cash on hand than
Is needed or will be needed. 1t was
hinted at Atlantic City that such insti-
tutions should take some OF this money
and buy bonds. Adoption of such action
in all parts OF the country bankers say,
would give the bond market substantial
boost. raise first-grade bonds to much
higher levels and be an indirect benefit
THE second-grade issues. OF course 1t Is
understood that the banks would con-
tinue to be very conservative on the
question of liquidty, but at the same
time a large amount of idle funds could
he set to work, helping both the bond
market and the banks themselves.
Local Power Bonds in Demand.
Potomac Electric Consolidated SIS led
moderate trading on the Washington
stock Exchange yesterday. The market
onened with 1000 selling at l02, fol-
lowed by $4,000 and $1,000 sales at the
same figure.
washington Gas SIS sold to the extent
of 81 900 at 10l q and Washington Gas
Is. series A, moved at 101 2. The re-
manning trading was in stocks, the first
sale5 being woodward & Lothrop COM
mon at 80.
Potomac Electric Power 6ls per cent