Evening star., 1932-04-09
NEW BANKS NEEDED.
IN MANY PLACES.
Survey Shows Several Good
Sized Cities Without Finan-
ciaI Service.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
In the April issue of Rand McNally's
Bankers Monthly, the claim is made
that analysis shows there is room for
more banks in the country and that
more are needed Such a view is di-
yergent from that held by many Wash
ington bankers who say there are too
many banks in the Capital and that
during good times unnecessary financial
institutions were granted charters in
other places. However, Rand MCNally
is bringing out another directory and
the statement that there lis room for
more banks" is based on facts assembled
in this book. The directory says there
are now 1928 banks in the United
States.
The 1928 banks are made up of
6,276 national banks, $4,000 State banks
and trust companies, and 452 private
banks.
There are also listed lat industrial
and Morris Plan banks, which to-
gether have 81 branches; IL Federal
Reserve banks, with 26 branches; IL
Federal Ian dbanks, II Federal inter-
mediate credit banks. and 81 joint stock
land banks, one of which has a branch.
In arriving at the conclusion that
there is room for more new banks in
the United States. a study was made
of the non bank towns as listed in the
January directory. This list was
checked with the latest commercial
atlas for population and it was dis
covered that there are 1925 cities with
q population of 1000 or more which
have no banks.
Examples of some cities without banks
are these: Harvey. Ill. 1894 popula-
TpI
an. Mich, 1922; Gulfport, Miss, H.
SAT; Vandalia, Mo, 2,450; Medina,
N. Y, 6,071.
Price Drop More Moderate.
From 1929 through the first half of
1881 declines in commodity prices be-
came progressively more severe. Each
month prices we're less than a year
earlier by a greater amount. A spe-
cial study of commodity prices just is
sued by the United Business Service
of Boston shows that beginning with
the middle of 1881 the declines began
to moderate and this favorable trend
continues up to the present. The
survey concludes that the commodity
price decline is spending its force, and
that during the present year definite
stability should be evident.
Noteworthy Banking Record.
The effects of the existence of the
Reconstruction Finance Corporation on
the bank failure situation in the Min
neapolis district have been noteworthy.
The Reconstruction Finance Corpora
ton act was signed on February and
the agency for the Northwest COM
pleted organization and began making
loans to banks about the middle of
February The effects on the bank
failure situation were immediate. In
January, before the Reconstruction
Finance Corporation act was passed,
there were nine non-member bank
failures in the ninth district, involv
ing S2,256,000 of deposits and four
member bank failures involving ST.
922 900 of deposits. In the first half
of February there were only four nom
member bank failures, involving
$729,000 of deposits. In the last half
of February there was only one bank
failure in the district, a non-member
bank with S572 900 of deposits In the
first 20 days of March there was only
one non-member bank failure involv-
ing $685. 900 of deposits. There were
no member bank failures after the be-
ginning of February.
The Southern Railway Co. in its re-
port for year ended December 81, 1881,
shows net loss of SIS, 5,922, ,842 after taxes
and charges. This compares with net
income Of $9,126512, equivalent. after
5 per cent preferred dividends, to 81 72
a share on 1928, 200 shares of common
stock in 1880.
Total assets on December 81 last
amounted to 1868, ,755, ,703, comparing
with $681 ,354873 on December 81, 1880,
and profit and loss surplus was $99,-
36l .904, against s105, ,891 ,069. Current
assets were s20,553,227 and current
liabilities were $18, ,665, ,667. as compared
with $36075610 and S29264, $40, re-
spectively, at end of preceding year.
Surplus account follows: Profit and
loss surplus December 81. 1880, S105,-
S9l 069, add: net miscellaneous credits,
S100626; total, Sl05 ,991 $685. deduct:
net loss for 1881 year, S5.922.8 .842; COM
mon dividends, S454,370; property re-
tired, 1882, ,579; balance of profit and
loss surplus December 81, 1881, $99,-
361 ,904.
Heard in Financial District.
National Dairy Products Corporation,
which has two subsidiaries in Wash
ington, reports that earnings for the
first two months Of 1882 have held up
to 1881 levels.
Washington and Richmond chapters,
American Institute of Banking, are to
engage in heated debate here this
evening.
Henry L. Heilman executive man.
ager of the National Credit Associa-
ton, has reported to the local asso-
citation that there has been no great
change in the business situation in the
past month. However, there has been
some improvement in certain lines of
retail trade Manufacturing still drags
Merchants who look for better trade
as Summer approaches base the eX-
pectancy on three reasons. During the
Winter mild weather hurt the sale of
heavy clothing and other goods Cold
weather in rart O. March slowed up
buying in early Spring merchandise,
but hot weather is certain to come
and make a demand for Summer goods
Local board rooms were crowded
again today as traders and investors
anxiously awaited some signs of a
turn in the market. The ticker has
never been followed much more closely
than it is right now. Many are watch
ing stocks they already hold. while
others are ready to buy at the bottom" 4"