Evening star., 1932-03-02
RESULT OF CREDIT
/ EXTENSIONS SEEN
Frozen Assets ThaWed by
Government Agency Dur
ing Recent Weeks.
BY EDWARD c. STONE.

IIlS lNdblOildI SLCNlI SOI POL dtlOll, 4OlIilCO
to help thaw out temporarily frozen
bank assets, is nearing the end of its
very useful emergency service. Devel-
opments of a constructive nature have
superseded the work carried on by this
national organization.
A most important development has
been the organization of the larger and
more extensive Reconstruction Finance
Corporation, one Of whose functions
virtually duplicates the purpose for
which the National Credit Corporation
was organized The operations of the
latter may ultimately be assumed by
the Reconstruction Finance Corporation.
Demands for loans from the credit
corporation have been subsiding lately,
and financial institutions in need of
assistance have turned to the Recon-
struction Finance Corporation.
Although it was organized last Octo-
ber the demands for loans from the
National Credit Corporation cannot be
considered excessive when the severity
of the business depression Is recog-
n.ccd AS of the close of January It
wes reported that the corporation had
made GA loans to $50 banks, tie total
leans and commitments amounting to
S144 100000.
The Wall Street Journal calls atten-
ton to the fact that the GlasS-Steagall
bill will permit the rediScounting by
banks and trust companies which are
members of the Federal Reserve Sys-
TEN of certain paper at the Federal
Reserve banks, which was not hereto
fore eligible Banks holding such as
sets have been applying to the credit
corporation for temporary loans. This
need is now passing.
Holds Enviable Record.
The Washington Unit of the national
organization was the first one organized
in the entire United States. In the
final organization, H. H. Mckee, presi-
dent of the National Capital Bank and
chairman of the Clearing House ASSocl-
alton, was elected chairman of the EX-
ecutive or Loan Committee; Victor B.
Deyber president of the Second Nation
al Bank and secretary of the Clearing
House Association, was made secretary;
while George 0. Vass, vice president
and cashier of the Riggs National Bank,
was chosen treasurer. Other members
of the committee, which functions as
managers of the local association, in
clude:
Robert v. Fleming, president, Riggs
National Bank: Corcoran Thorn, presi-
dent, American Security & Trust Co.;
George w. White, president, National
Metropolitan; Francis G. Addison, jr.,
president, Security Savings & CONNER
cial; william D. Hoover. president. Ma
tional Savings & Trust: John Poole,
president, Federal-American Bank g.
Trust Co.. Lanier P. McLachlen, preSi-
dent, McLachlen Banking Corporation,
and Frank J. Stryker, president, Colum-
bia National,
John M. Miller of Richmond is
regional director for the Fifth Federal
Reserve district. At his request Mr..
Fleming took the lead in forming the
washington unit. The 80 banks in the
Capital subscribed 100 per cent to the
gold notes, the total subscriptions to the
quota being nearly S4,0000 900.
While the units all over the country
are still functioning yet financiers are
much pleased that the banking situa-
ton has recently shown marked i'm
provement, that failures have shown a
striking decrease and that the immense
Reconstruction Finance Corporation is
already making loans where temporary
.elp is needed.
Better Sentiment Is Noted.
The improvement in business senti-
ment noted in the first few weeks CT
the year has proceeded further, states
the Guaranty Trust Co. in its monthly
review. The better tone probably is
due in part to greater confidence aris~
ing from the decisive measures taken
by the Government to strengthen the
financial situation, and, in part, to q
natural reaction from the overdrawn
pecsiYnism that resulted from the series
CT false starts and subsequent disap-
pointments in 1881
"A distinct improvement has also
occurred IN banking conditions. Some
signs of a decrease in boarding have
been noted. There is ground for the
hope that bank failures will soon cease
to be major factor in the business Sit
uation
Today's Trading on Exchange.
Mergenthaler Linotype opened trad
ing on the Washington Stock Exchange
today selling at 42a4 Two sales were
then made at 42ia and the stock closed
where it opened the turnover being 29
shares.
Woodward & Lothrop preferred ap-
peared on the board for the first time
in several weeks, IS shares selling at
107 Potomac Electric 5i2 per cent pre-
lots, closing at 104A.
Bond trading was confined to one
sale $1,000 Potomac Electric consoli-
dated IS moving at l001s.
Credit Executives to Meet
President C. w. Clayton of the Wash
ingtcn Association of Credit Men an
nounced today that a session of credit
executives of the fifth district of the
National Association of Credit Men,
composed of representatives from Mary
land, TIE District of Columbia, Virginia
and Ncrth Carolina, will be he'd at
-Sy,aa Hotel ENridov
F. w White, national councillor and
general chairman of the Committee on
Arrangements, has appointed the fo,-
lowing committee chairmen for the
event: F. 1. Williams, Publicity: F. w.
Harper, Printing; Louis M. Hewlett,
Hotels; Miss F. E. Thompson, registra-
ton; Mrs E. J. Hess, reception; John
A. Reilly, Speakers and Subjects; w.
j. Tastet, Finance; A. E. Kostulski,
Entertainment.
Heard in Financial District.
Maurice Otterback, president of the
Anacostia Bank. reached home today
from a three-week vacation at Miami
and other points in Florida.
National City Bank has declared a
quarterly dividend of rs cents. pay
able April l to stock of record March
S, placing stock on SO annual basis
against 81 previously.
Bankers Trust Co. of New York has
declared the regular quarterly dividend
of rs cents, payable April l to stock
of record March II.
Alexander Kueller. who for the past
is years has been first vice president
of the Brookmire Economic Service,
Inc, has been elected president of the
organization.
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