Evening star., 1932-10-26
STRONGER BANKING |
STRUCTURE SET Up
"Uneconomic Units" Have
Been Eliminated in
Recent Years.
BY EDWARD C. STONE.

ready been developed tnrOugn the
elimination of "uneconomic units" by
suspensions, mergers and voluntary
liquidations with greater thoroughness
and effectiveness than could be accom-
plished by any of the sweeping plans
proposed for reform through legislation,
the Economic Policy Commission of the
American Bankers Association declares
in a study made public today In IL
years. the report finds, the number of
American banking institutions has been
reduced by these means from over
10000 to under 10000 and their average
financial resources doubled. Although
many good banks and bankers were
ruined by conditions in the depression
for which they were not to blame the
institutions eliminated during the past
decade, it says, were mainly among
banks that should never have been
granted charters, that were improperly
conducted or for which sufficient buSi-
ness to support them no longer existed
in their localities.
There has been salutary elinina
ton of undesirable elements and causes
of weakness that reacted against all
banking, strengthening OF the banks
that are left and raising of the now
prevailing standards of character and
SOundneSs as measured in terms of
average capital, resources, available
volume of business and qualities of
management" the report says. The
average bank in 1921 had the activities
of only $500 persons as the basis of its
business, while today there are more
than 5000 persons per bank, it brings
out, adding that the capital funds per
bank then averaged S205,000 and the
deposits S1,250,000, while the averages
for the present structure are $4,000
and S2,500,000, or twice the former
figures.
THE total capital funds for the
10000 banks of 1921 were $500 000-
600 and today they are approximately
$500, 100000 for 1880 banks-a re-
adjustment downward from the high
point of $4,000, 100000 reached in
$780," the report says.
Fifth District Sales Compared.
The Federal Reserve Bank of Rich
mond gives a most interesting report
on sales in September, 1882, and the
first nine months of this year, COM
pared with the corresponding periods
partment stores were off 9 per cent in
SEPTEMBER and Is per cent in the first
nine months Of 1882 compared with
1881. Stocks of goods on hand were
down 126 per cent for September COM
pared with September, 1881, but were
13 per cent higher than in August of
this year. ReceivableS collected during
September amounted to 24.1 per cent.
Total sales in Richmond were off 10.4
per cent in September, II per cent In
Baltimore, 1876 per cent in a group
of other cities, while the average for
the fifth district was 1913 per cent
under September, 1881. For the first
nine months sales were down 20 per
cent in Richmond, 20 in Baltimore, 25
in a group of other cities and 1873 per
cent in the district as whole.
The percentage of September l, 1882,
receivables collected during September
stood at 26 per cent in Richmond, IL
per cent in Baltimore, 81 per cent in
other cities and 21.6 per cent as the
average for the whole district.
The Richmond bank reported that
shoes made the best showing in the
wholesale trade compared with a year
ago Sales of groceries were down 16.5
per cent. Dry goods were down B per
cent, shoes were 5 per cent better
than last year, hardware was down II
per cent and drugs 10 per cent. Com
pared with August, however, there was
a 54 per cent increase in dry goods
sales, "a per cent in shoes, the same
in hardware and per cent in groceries
and drugs.
From January to September, groceries
sales held up the best, although II per
cent under last year. Wholesale COL
lectionS showed marked improvement
during September.
North American Reports Years Net.
The North American Co. today re-
ported for the u months ended Sep
tember 80, net income after all charges
OF S17177217 equal to $2.42 share on
the outstanding common stock. This
compares with S23 3,390,l87, or 1884
share for the II months ended Sep
tember 80, 1881. Gross earnings for the
period totaled S109,416,318 compared
with S120,684,597 in the preceding II
months.
For the first nine months this year
Norfolk g. Western Railway had net
income of S9,702, 1882, equal, after pre-
ferred dividends, to S6.40 a share on the
common stock. This competed with
S15.6O9 $50, or S1060 a share, in the
first nine months of 1881.
The Investment Bankers Associa-
items Committee on Government Bonds
and Farm Loan Bonds presented an
analysis of the situation with respect
to Federal Land Bank and Joint Stock
Land Bank issues. The bankers recog-
nizo the trend in administration and
congressional circles for legislation this
Winter on these two banking systems
and procured the adoption of resolu-
ton insisting that the holders of Joint
Stock Land Bank bonds be accorded
equality of treatment with Federal
Land Bank bondholders.
Local Bonds in Good Demand.
Local bonds were in good demand on
the Washington Stock Exchange today.
The market opened with two $500 sales
in Washington Gas Light IS selling at
lOf1a.
Washington Railway 81 Electric IS,
one $4,000 sale at 875s, and one $1,000
sale at 3734. Washington Gas 6s. series
A bond came out at 997s in $1,000
transfer.
In the stock division Washington
Railway & Electric preferred came out
at 88I2, and Potomac Electric Power
512 per cent preferred registered
small sale at 1852.
Norman E. Towsen. chairman of the
Forum Committee of Washington Chap
ter. American Insti ute of Banking, an
ticipated a record attendance at to-
nights meeting at the Hay-Adams
House, starting with a dinner at $50.
Two speakers are on the program. Rev.
Joseph r. SiZoo, pastor of the New York
Avenue Presbyterian Church, and Gros-
venor NJ. Jones of the Department of
Commerce. 1t will be the first forum
meeting of the year.
Financial District Notes.
A. E. Henze of W. B. Hibbs & Co.,
who is editor of Dollars and Sense this
year, announces that the first issue of
the year will be off the press in a few
days It will contain all the latest news
on Washington Chapter, American In
stitute Of Banking.
More than 10 per cent of the coun-
try's banks and trust companies having
deposits of 100000 900, or over, re-
corded deposit gains in the quarter end
ed September 80 There were ~ insti-
tutions in the grouping whose aggregate
deposits exceeded $4,000, ,000,0 900, rep
resenting about 81 per cent of deposits