Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-05

emily trying TO make up tner mlndS
whether to. withdraw.
pulling up in front Of the building,
most OF them occupied by anxious wofTi-
en- who jumped out with deposit books
in hand and Joined the line.
BY o'clock there vas no doubt that
run was on Police from the first
precinct were summoned and tried to
hold the crowd in line. BY 4 O'Clock
the large lobby was filed and the cash
iefs were paying on as fast as they
could handle the money.
It was an orderly gathering, with en-
occasional anxious woman, bordering
on tears, lingering nervously her de.
post book, With the yellow withdrawal
slip protrudinE. Detectives were In the
crowd and from time 10 time cooler
headed persons passed by, reassuring
the assembly Of the financial stability
OF the Institution. Some Of these were
depositors in the association, who evil
denced their faith In the so0roheSs of
the firm by leaving their money undis-
turbed in the vaults Among those who
treasured the crowd was Capt. F. e.
w. Burke of the first precinct, who
said he did not intend to withdraw his
account.
Meanwhile, Edward c. Baltz, secre-
tary of the association, had called on
the controller of the currency and local
bankers for advice. The controller, who
has supervision Of all building and loan
associations in the District, advised Mr..
Baltz not to make a statement, but lat
er when the situation became increas-
ihgly serious there was hurried meet
ing of the bank presidents. John w.
Pole, the controller, attended the meet
ing. accompanied by bank examiner.
When the meeting terminated, they
filed solemnly down the stairway Ac-
cempanied by Mr.. BaltE. After D brief
consultation, Mr.. Addison mounted atop
one of the desks and faced the crowd,
lined up at the counter q few feet away.
II have q certain definite message
for you. I want you to know that we
have just been in q meeting upstairs
and have examined in detail the af-
fairs Of the Perpetual Building Asso-
citation, which, as you know, ID SUPER
vised by the United States Government
and the controller Of the currency. The
controllers examination as Of Saturday,
January 10, less than a month ago.
showed that this institution had 81.
500, 900 in cash on hand.
"rhis morning the association had
that much and more. There has not
been one thing to occasion the loss Of
confidence in the Perpetual Building
Association. We say to you, eandidly,
after afi examination Of the books of
this concern, that there is not one thing
mat 'hIstifles the tpsetting Of public
confidence ia this Institution.
1.-The Perpetual Building Association
confines its investments to two things
Ito cash and to first mortgages orly,
and to those on small homes"
Mr., Addison also squelched one NJ
NOR, that probably was a major cause
for alarm among customers OF the in
stitution, by declaring that positively
and absolutely there had not been any
connection between the Perpetual bust
ness and the affairs Of the bankrupt
mortgage bond house Of Swartzell,
Rheetn q Hensev.
Mr.. Addison cited reports he had re-
ceiyed that false rufnors about the con-
munistic origin and declared that
depositors of the association. whether
they withdraw their savings or not,
would be doing q great public service
II they could furnish any clue As to
the identity Of the person or persons
who started the chain or ftirnors that
resulted in the run
The old saying that money talks"
also was demonstrated when Mr.. Flem-
currency Of large denominations, which
the Riggs bank had placed at the dis
posal Of the building and loan associa-
ton.
THESE bundles of bills constituted
sum of half million dollars, which
was made Immediately available for dis
bursenent to the customers OF the Per-
petual.
This act and announcement that other
large banks OF Washington stood ready,
If needed, to add other huge sums to
nf inhfftltiA1
brought definite indications Of q turn
of sentiment among the crowd, and some
cried, Lets 60 home"
Strive 70 Reopen Accounts.
Some customers of the association
struggled forward through the crowd in
the banking rooms, striving to reopen
their accounts.
Mr.. Fleming said the Perpetual and
the Riggs National Bank had main
tanned very valued" relations over 2
the affairs Of the building association
of current date show mo need for any
concern" 1t was then that he held up
to view the 100000 in currency which
his institution had placed at the dis
posal Of the association.
Mr.. Poole, who was recognized by the
crowd as president of the Federal
American National Bank declared ne
had implicit faith In the integrity OF
the off1eials Of the Perpetual. the sound
ness of its business and added;
II know of no place where investors
could deposit their savings with greater
degree OF safety than in this institQ-
ton. There is no reason for q single
person to have any apprehension"
He pointed out that the building ana
loan organization, the third largest pri-
Vate financial institution in Washlng-
ton, had about 100000 invested in
conservative first trusts on District
proportion privately owned dwellings
ON which the home purchasers were
making regular installnent payments.
Explaining indirectly the reason why
other local banking institutions had
acted to place additional cash sums at
the disposal of the Perpetual, Mr.. Poole
said that such an institution must IN
vest Its funds and therefore does not
have its total capital lying idle IN It's
vaults.
In addition to the $50o,o00 brought
from the Riggs Bank, Mr.. Poole said
he had pledged as available for the use
Of the Perpetual q sum Of approximately
$500, 900 from his bank, this constituting
the full available legal limit placed on
a national bank.
you ought to 20 home with . feel
ing of absolute safety" he concluded.
Mr.. Baltz, the secretary Of the Per-
petual, said he had been receiving calls
from Washington bankers all during the
day. pledging help, If needed. to assure
all the cash that could possibly be re-
quired if all depositors saw fit to with
draw their savings.
Mr.. Fleming, after addressing the
throng in the association building,
climbed to a window ledge outside the
building ana repeated MEASUREMENTS Of
absolute confidence in the Perpetual
to the crowds which blocked the side
walks near the building.
During the addresses, the pay-oh