Evening star., 1932-10-10
BANK TRUST FUNDS
1 PROBE EXPLAINED
Examiners Will Make Inquiry
/ Into Assets and Handling
of Accounts.
BY EDWARD c. STONE.

the examination of trust departments
which were recently explained IN oe-
tail by Aubrey B. Carter, national pank
examiner, in charge OF trust department.
supervision, office of the controller OF
the currency. Mr.. Carter states lnat
the examiners are instructed to make
thorough and complete examinations
of cash. securities, accounts and IN.
vestments OF the trust departments OF
the banks furnishing one copy OF tne
report to the controller ana one 10 llie
directors of the examined tankS.
Mr.. Garter adds that the outy placed
upon the examining force in determln-
mo the character of management OF
trust department involves the Verlflca-
tion OF the following items, or aScer-
tanning that the trust department Is
being operated in such manner thaC
complete and detailed checks are un-
necessary:
/. To see that all trust assets turned
over to the trust department are intact.
2. That they are held by the panA III
q fiduciary capacity.
3 That the income has been co.,
lected on income producing assets OF
the various trusts.
4, That it has been properly distrlb-
uted to the benefciarles or otnerWlSe
accounted for.
5. That any distribution OF principal
has been properly made.
6. That the income OF the trust de-
partment has been properly accounted
for.
7. That the assets of the trust de-
partment reflect lawful and efficient
MANAGEMENT of the trusts commltteo
to it.
8. That constructive recommendations
for correction accompany all exceptions
found by the examiner. and set up IN
his report in such manner that the
banks supervisory authorities may be
enabled to correct the exception COM
planned Of.
Business Outlook Held SpOtty.
In its weekly summary of the gen.
eral business situation, the Stanoaro
Statistics Co. currently comments as
follows:
The outlook for business recovery
during the balance of the year IS cloud
ed bv the fact that. in many Industries,
the peak of seasonal activity is reached
about the middle Of October. There
after a declining trend is normally in
evidence, broken. in so far as retail
trade is concerned. by the CHRISTMAS
shopping period. Thus revival at this
time would have to make headway
against a seasonal contraction which
might obscure. in the public mind, the
than calculated normal.
Due. in part. to the revival in light
er industries and in less degree to the
slight gains in steel and other basic
trades. there has been q considerable
pickup in average activity. Recovery
from the July lew level amounts to
about 10 per cent, which represents an
absolute gain. since the seasonal factor
has been eliminated from the calcula-
tion.
The concentration of the improve
ment in consumption lines, as against
the capital equipment industries. has
had one favorable effect. Political un-
certainties have failed to check it in
marked degree for obviously. an indi-
vidual will purchase a suit of clothes
or a pair of shoes with less regard as
to who is to be the next President, than
he will lay cut funds for new plant
facilities under similar uncertain con-
ditions."
Today's Trading on Exchange.
Washington Railway & Electric 4s
drew the most attention when business
was resumed on the Washington Stock
Exchange today. Eight consecutive
$1,000 sales were recorded at 87$i.
Potomac Electric Power per cent
preferred stock was strong. SIS shares
selling in five transactions at ITO. The
corporations per cent preferred stock
moved at 105ls and 1852 in small lots.
washington Gas IS, series A. figured
in 500 sale at SO. Norfolk & WASH
ington Steamboat Co. stock figured in
q 15-share turnover at 100.
Gould Favors Loan Reports.
Ezra Gould, president of the Wash
ington Mechanics Savings Bank, has
come out strongly in favor of publishing
reports on loans made to banks by the
Reconstruction Finance CorpoI alton
declaring that such loans are made
more for the benefit of depositors than
for the banks themselves. On this con-
troversial subject he says:
There seems to be a feeling in the
public mind that banks borrow from
the Reconstruction Finance Corporation
because they need funds when. as a
matter of fact, in majority of cases
the bankers main desire is to pass on
to the public through his institution,
the benefits derived from these loans.
In other words. the bank is merely the
channel through which the Government
may lend assistance to the individual
and, therefore, no harm can be done
through the publication of the name
of the bank engaged in this laudable
work
With thousands of agencies of this
kind throughout the country acting as
Intermediates between the Reconstruc-
tion Finance Corporation and the public
mmeaSurable good can be accomplished.
While my institution has not availed
itself of this source of credit, feel that
1t is laudable thing for bank to DO
rather than to crowd its customers for
payment of good obligations, possibly
causing the sacrifice of property
Cleaned in Financial District.
The local New York Stock Exchange
Offices will be closed Wednesday, Oc-
tober r. Columbus day. All the banks /
will be open, as usual.
Vice President A S. Offutt of the
Washington Mechanics Savings Bank,
is taking a three-Week vacation. plan
ming to return to his desk on Novem-
Der l.
Capt. Isaac R. Bowen, who was in
charge of the American Security G.
Trust Building for many years, cele-
brated his 93d birthday anniversary
yesterday, several local bankers calling
to extend congratulations. He is still
in splendid health. His son. S. Russell
Bowen. is vice president and general
counsel of the Washington Railway &
Electric and Potomac Electric Power
Cos.
The National Credit Corporation has
announced that it will not make final
payments to the banks for year. This
is the organization which was started
before the Reconstruction Finance Cor
poration came into existence and made
many loans to banks with frozen assets.
Washington banks subscribed 100 per
cent to the loan fund and have already
received most of the money back.
Bank Stocks React.
New York City bank stocks again re-
acted sharply during the past week, the
decline in the aggregate value approx
mating 10 per cent. The aggregate value
of 16 leading issues according to rec
ords compiled by Holt, Rose & Troster