Evening star., 1933-08-07
BANKS TAKE LEAD
REPAY|NG R. E..C.
Favorable Report Attracts
Merest-D. C. Loans
Made Recently.

AL NACW VA t1iC ACSCiie AooAA Ny viz AeS
construction Finance Corporation Of
S., ,455 900 to the eight member banks
of the Hamilton National Bank merger
here IN Washington. there was much
interest expressed in financial circles
here today in the report OF the Recon-
struction Finance Corporation showing
the substantial repayments made al
ready by banks and trust companies
throughout the country on their loans.
The banks and trust companies are
shown by the Reconstruction Finance
Corporation to be the largest private
borrowers, having been loaned total
of $1,22l ,878, ,l64, but they have already
repaid As per cent of this, or $685.
072, 1863.
This places the financial institutions
at the top of the list of those making
repayments, as they have paid oil a
larger percentage of their debts to the
Reconstruction Finance Corporation
than any other single group. A month
ago the banks already had repaid 38
per cent.
Details Unavailable.
While details of what the Washington
banks borrowed from the Reconstruc-
ton Finance Corporation have not been
made public as yet, it Is known that>
some of the member banks OF the HAM
ilton National Bank merger had de-
creased their loans. The loan recently
of about five and half million to mem,
bers of the Hamilton really constituted
a refunding of old loans. with a re-
organization of the security back OF IT,
in order to enable the Hamilton to take
over enough prime assets of the merger
banks to assume SO per cent OF oeposlI
liability.
Further details of the r. F. G. loans
during the last month here and through
ont the country will be made public,
nrobably this week, in the monthly re-
port of the r. F. c. to Congress MuGn
interest will center on whether tne n:
F. c. shows in its report the details OF
loans to the Hamilton Bank members,
or only in cne lump to the member
banks as a group.
Stock Not Purchased.
The R. F. c. has purchased no pre-,
ferred stock in the Hamilton Natlonal
Rank merger. so that the Hamilton It
self owes nothing to the r. r. T.
The Reconstruction Finance Corpo-
ration authorized total loans throughout
the country. including Washington, OF
ST 469 ,O73. .488 to 6.278 banks. OF the
total advances 1882 500 was can
celed or withdrawn, $89,6l2,723 re-
ma1neO 10 IQ6 VI IllC wa
and S1,221 ,878,164 was dlsbursed IN
cash.
Since passage of the emergency
banking act the r. F. c. has agreed to
make loans aggregating Sl4,34o, ,oOO on
preferred stock of banks and to pur-
chase s47.33O,5O of preferred stock or
capital notes and debentures to aid IN
organizing or recognizing banks. Pur-
suant to these agreements the corpo-
ration has disbursed S50,083, 900 IN
cash. In addition. the corporation has
$56. 900, 900 of preferred stock or capital
notes and debentures and to lend ST.
100000 upon preferred stock.
Trade Marks Time.
In its weekly summary of the general
business situation the Standard Sta
tistics Co. of New York currently COM
ments as follows:
Business, while holding large por-
tion OF the gains of the last few months,
is generally marking time, awaiting
tangible evidence of success in the Ma
tion-wide drive to mobilize industry
under the blanket recovery code.
1T is too early to attempt to gauge
the detailed effects of this huge expert
men upon subsequent industrial opera
tions. If successful, however, 1t could
not help but result in sharp gain in
the aggregate of business activity. The
fact that there has been no marked
slowing down as the codes take effect
is encouraging evidence of the inherent
strength of the present revival.
The increase in total industrial pro-
duction during July, as estimated from
preliminary data, is being well sustained
by actual results. The Standard Statls-
tics Co. index of such activity now
stands at 946 for July, as compared
with 889 for June and $50 for July,
1882
With the completion of preliminary
adjustments, the Fall months un-
doubtedly will be marked by a broad
and substantial trade and price re-
covery. Manufacture and Distribution
will be sustained by the probable addl-
ton of several millions OF workers,
while purchasing power of the agricul-
tural regions will be enhanced by higher
farm prices and by the Government
bounty, guaranteeing cash receipts to
the farmers despite the condition OF
their crops"
Fidelity Fund Report.
Fidelity Fund, Inc, in its quarterly
report to stockholders states that the
fund is now upon basis of 8812 per
cent common stocks and 1112 cash and
accruals. Its portfolio consists of Al
common stocks with current market
values we'll in excess of cost. The re-
port comments in part upon the ad-
ministration plan as follows:
IF the employment plan of the ad-
ministration becomes truly operative
several million of the now unemployed
will be in position to spend money
by the end of the year, and many others
will have greater amounts to spend
than at present 1t cannot now be
determined whether the greater
amounts available for spending will
buy more or less than they will now
The administration, of course, hopes
that real as well as nominal wages will