Evening star., 1932-01-16
Larger 1882 BANK
1 PROFITS FORECAST
Bankers Journal Expects
Frmer Money Rates to
Lift Earnings.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
Better days are ahead for banks all
over the United States in 1882, accord
ing to the American Bankers AsSocl-
alton Journal. The Journal declares
that bank earnings should be larger
during the coming year, one reason
being the higher interest rates expected
during the u months. ,
Washington banks have had little
cause for complaint during the past
year, some of them covering the fun
years dividend requirements long be-
fore the end of the period. A good
many extra dividends were also voted,
as well as bonuses for the employees.
The banking situation OF the country
as q whole, as viewed by the A. B. A.
publication, has these prospects;
Whereas the year 1881 brought
major crisis to the banking system,
which was faced with level of in
terest rates held abnormally low by
artificial means, losses from the nu-
rnerous commercial failures flight OF
deposits and Withdrawals of currency
and an unprecedented decline in the
market prices of their investment hold
fYgs, the year 1892 will doubtless wit
ness the restoration of some banks TO
their former position of strength and
soundness.
"Highly rated bonds are selling at
prices that are due for marked re-
covery, the only alternative being
widespread insolvency of the country'S
corporations the mere suggestion OF
which is assured to any one who has
taken the trouble to study their finan-
cial, condition as shown by published
balance sheets and income statements.
Bank earnings should be higher In
1892 than in 1881 because OF f1rmer
interest rates and larger yields on In
vestrnents, and the income from loans
would be materially increased II there
Ia a resumption of demand for COM
roercial and secured accommodation.
"The banking troubles during the
past two years have weeded out many
banks and at the same time have en-
HANGED the standing Of the conserva-
lively managed INSTITUTIONS, the
Journal concludes.
Better Trade Year Forecast.
Local bankers today predicted that
there will be an increase in retail trade
In washington during the present year
which will be reflected in both bank
clearings and bank deposits. The TACT
that retail trade in the Capital in 1891
for 1880 is considered highly gratify-
ing. Another cause for moderate re-
Ioicing is the report that retail trade
in the fifth Federal Reserve district
Jas off only 6 per cent for the full
wear. a better record than was scored
by any of the other IL Reserve districts.
It will be easy to wipe out the per
cent decline in trade in 1881 compared
with 1890, bankers say, through the
George Washington C-,ebraton. sup
pose only half, quarter or even one
eighth Of the visitors expected by the
r1anagement actually come here, they
will spend enough money 10 give US
a much higher set Of retail trade flg-
ures in the next IL months" one flnan-
cier declared today.
Quality of Business Is Vital.
-Fhis is the way that Craig B. Halle
wood, former president of the A. B. A,
looks at new business:
Those who manage banking institu-
tions have often been prone also TO- DID
higher for a spectacular increase in
business than the quality Of the new
business warranted. They have so far
focused upon free services as apparent
" to lose sight of the fundamental
things which are expected of bank.
The job of bank management Is to
conduct a safe and liquid bank at a
profit: Unless it is safe and profitable
It cannot be OF maximum service in the
community The volume of business
means nothing if not linked with
safety and profit. A 10 per cent to 10
per cent increase in deposits in given
year has little or no significance If the
net earnings fail to keep pace"
Trust Company Makes Report.
The forty-second annual report of the
Washington Loan g. Trust Co., has just
been printed in pamphlet form. 1t dis
closes that notwithstanding the disturb
ed and uncertain financial and eco
nou1ie conditions which prevailed
throughout the year, the low rates for
money and the large cash reserve which
It was deemed necessary to carry, the
company earned net profit OF SlS.o9
per share for the year. This was more
than sufficient to pay the regular dlVl-
dend of IL per cent and an extra dlVl-
dend of 2 per cent.
The report is the first TO be signed
by the new president, Harry G. Meem,
who was elcted to fill the vacancy
caused by the death of John B. Larner.
The report states that the trust depart
ment had the best business in its his
tory and that all other departments
made records that compared more than
faYorably with the previous year.
Potomac Land Bank Election.
The following have been reelected
officers of the Potomac Joint Stock
Land Bank: George A. Harris, presi-
dent; John I. Cassidy, vice president;
Vernon GOWN, vice president and sec
retary-treasurer.
At the annual meeting OF the F1oenty
Building & Loan Association held yes
terday the following officers and trustees
were reelected: Rufus E. Milor, presi-
dent; Harry j. Miller, vice president;
Marcus Borchardt, secretary; John L.
Fletcher. treasurer; George D. Sullivan,
Leo E. George, @. P. Bickford and Capt.
Charles o. Shaw were elected to the
board Of trustees, to serve with the fore
going six. Fred B. Rhodes was renamed
general counsel.
Announcement was made Of 3l2 per
cent semi-annual, or 7 per cent annual,
dividend on the participating stock and
q 2la per cent semi-annual, or per
cent annual, on the nonparticipating.
Bank President 20 Years.
The reelection this week Of John
Poole as president of the Federal-Amer-
lean National Bank & Trust Co. marks
the twentieth time he has been named
as head of bank He first served with
the old Federal National Bank, later
became president of the Federal-Amer-
lean National Bank and now is the
leading figure in the institution which
he created by taking over the Mer-
chants Bank g. Trust Co. He told his
stockholders at the annual meeting that
the bank increased its net earnings this