Evening star., 1932-02-06

use Of credit and encourage the investor
to re-enter the security markets.
The proposed Reconstruction Finance
Corporation affords the most promising
channel through which the needed
credit may flow. Under this plan,
credit will be brought directly to the
point of need. BY saving emergency
situations and preventing unnecessary
breakdownS. Mr.. Mitchell asserts,
gradual elimination of exaggerated fears
and revival Of confidence may be hoped
for, which should reflect itself. among
other ways, in cessation of boarding
and return Of currency to the banks
throughout the country, thus enabling
: the latter to perform once more their
functions in assisting and encouraging
industrial revival.
The recovery of American prosperity
will be materially hastened by holding
to a constructive program. There can
be no doubt but that the unSatSfled
wants of the people will provide the
basis for such recovery as soon as the
elimination Of fear and progress OF re-
adjustment will permit the flow OF sat
isfactionS from one person to another
on an equitable basis Of exchange.
No weight need be attached to the
theory prOpOunded so often OF late that
industrial development has reached the
SdIuTdI4OI DOlllJ, anu ILIdL IlClINS SAOA W al ~
opportunities for the employment of
capital and labor will be more limited
than in the past. Such doctrine Is q
regular and familiar accompaniment OF
every industrial depression, and is regu-
larly disproved in every succeeding re-
COvery. Until human nature is changed
and people are satisfied with what they
have. there need be no fear OF an emu
to the possibilities for growth and eX-
pension in production and distribution,
the New York banker concludes.
Hogan to Address Institute.
Plans for the annual banquet of
Washington Chapter, American Insti-
tute of Banking, to be held at the
willard on Saturday, February l3, are
progressing rapidly and it is now eX-
rccted that the attendance will reach
Geo.
Attorney Frank J. Hogan, who has
sucn a brilliant reputation as an after
dinner speaker, has delighted the
Junior bankers by agreeing to speak at
the banquet. He is counsel for the
District Bankers Association and much
interested in the success OF all lnstl-
tute affairs.
Tha Committee on Publicity and
Printing, consisting Of Robert H. Lacey,
chairman. Columbia National Bank;
Norman E. Towson, Washington Loan
&, Trust Co.; A. w. Sherman Ameri-
can Security & Trust Co.; Robert G.
Whitton, First National Bank, Alex
andr!a, Va, and S. Winifred BurWell,
National Metropolitan Bank, is work
Ing with Walton Sanderson, Federal
. American National Bank & Trust Co.,
who has charge Of the decorations
with a view to working out a general
hn ho
The table decorations, stage setting,
programs, place cards, etc, will all bear
Tout this idea, and it is expected that
sdt will be effective and particularly ap-
spropriate as the following day Is st.
Valentine day.
Paying Unearned Dividends.
1t is widely agreed that corporations
which have built up fat surpluSeS in
boom times, and which retain this
2fnancial gain in liquid form, are fol-
Blowing a justified and helpful course
yin continuing to pay out reasonable
fdividendS, although not currently earned.
FSuch distributions to stockholders, says
gthe Magazine Of Wall Street, have
glayed an important part in maintain
bng our general purchasing power.
At present, however, it begins to
hDpear that the widespread inSiStence.
upon dividend maintenance Is reach
ing an unSound, even dangerous, point
and that more and more corporations
will be forced to a more frank and
prompt recognition of the inevitability
OF dividend revisions or omissions, the
Hnajority Of which changes are already
>1Orcast if not discounted. by low stock
BriceS and abnormally high yield.
Only relatively few companies have
she liquid resources to pay unearned
dividends without incurring grave risk
ain cases where virtually the entire pay
'mpnt must come out of surplus. There |
are altogether too many such instances,
the magazine asserts.
Bankers Offer Essay Subjects.
: Several most interesting subjects for |
lThe essay contest offered the members |
IDS Washington Chapter. American In |
Stitute Of Banking, were presented at |
ihe meeting Of the District Bankers |
sASSociation Council of Administration |
.Rt yesterdays meeting. These subjects |
sTill be submitted to the institute Off |
GERS for the expression of preferences. |
'The final decision will be made by the |
council at an early date.
The committee named by President |
c. H. Pope to suggest the subjects con-
biSts Of Harry @. Meem, president Wash
ington Loan & Trust Co.; Howard |
Moran, vice president American Sc |
Curity & Trust Co.. and George E. |
Fleming vice president Union Trust Co. |
After the subject has been selected !!
President Pope will appoint the judges |
to decide the winners. the three leaders |
being given trips to the June conven- |
ton Of the District Bankers Associa-
ton.
Maryland Banks Are ReOpened.
The Provident State Bank of Pres |
ton, Caroline County, Md. which has !
been closed since October 8, 1881, has |
TeOpened to resume business under a |
depoSitors' limited withdrawal plan. |
The Queenstown Bank of Maryland, in |
Queen Anne's County also reopened.
Sidney P. Prince of Washington was |
authorized by the Interstate Commerce |
Commission yesterday to hold the posi-
tiOn Of general counsel of the South |
srn Railway and its subsidiary roads. |
1ie will succeed the late L. E. JeffrieS |
Construction of engineering work in |
solving more than S55000000 is re-
ported by the Manufacturers Record !
as awarded and proposed in the South |
and Southwest during January. Oil re-
Ening plants were leading in present |
Rnd contemplated industrial construc- |
tion, it. was said.
Notes In Financial District.
Bank clearings in Washington this |
week totaled 19,547 900 against $19,- |
353O00 in the previous week, but |
decrease Of 20 per cent compared with |
the same week year ago. Bradstreet's |
report that every city in the United |
States showed a decrease.
Mabel " Royce, Rose L. Royce, T. |
I'untOn Leith / j Roberts, Frank M |
Serley, Aubrey O. Dooley and S. Wini-
fred Burwell will attend the annual
banquet tonight Of Baltimore Chapter,
american Institute Of Banking.