Evening star., 1933-06-01
OFFSET PRINCIPLE
PLANNED TO CLEAR
BANK SITUATION.
Conservators Expected to
Receive Official Instructions
to Apply System.
PROCEDURE is DESIGNED
FOR MUTUAL Benefit
Campaign to Sell Stock in New
Hamilton National Moving
Forward Rapidly.

The principle of "off-set" will be
used in clearing up accounts Of creditors
and debtors Of the unlicensed banks of
the District Of Columbia, it was learned
from reliable quarters today.
While bank conservators have not yet :,
received their official instructions, it
was believed that details would be avail
able shortly, so that banks may apply
this important procedure to the complex
situation.
The offset" Is used in cases where
the same person or corporation is both
a creditor and debtor of a bank. For
instance to take simple and small ex-
ample, suppose that an individual owes
one OF the unlicensed banks S100 and
he has on deposit in the same un-
licensed bank $50. Under the proceed
ure he will be able to get credit for his
complete $50 in the payment Of his
debt of S100, provided he pays the other
remaining $50 in cash to the bank.
Expect Mutual Benefit.
This example is not official. and the
procedure may involve some details or
qualifications not explained above, but
the general principle will be used, and
is expected to be Of great help not only
to those who hold dual relationship
to the banks, but also to the banks
themselves.
This mutual relationship between the
bank and the creditor and debtor has
been worked out successfully in many
cases in the past, and it is believed
that full authority soon will be forth
coming for the local unlicensed banks
to begin action in this direction.
Stock Campaign Progresses.
The campaign to sell stock In the new
Hamilton National Bank moved forward
rapidly today, following the most out
standing development of the past "a
hours, an important meeting Of stock
holders Of the Federal-American Ma
tional Bank g. Trust Co. at the bank
building last night. The meeting was
addressed by w. Irving Shuman of the
Treasury Department, who has been
actively representing the Government
in the reorganization Of unlicensed
banks; John Poole, president and con-
servator, of the Federal-American DIR.
Charles G. Abbott, a director of the
Federal-American; Joseph P. Tumulty,
director of the District National Bank,
and Capt. Chester Wells, chairman Of
the General Subscription Committee for
the Hamilton National.
Many Subscriptions Reported.
Lie uICCI444S was pICSlQCQ OfcI Wy
William John Eynon, chairman of the
subscription committee of the Federal
American, who said this morning that
many subscriptions were made last
night Immediately after the meeting,
and many more were expected to be
forthcoming today, as result. The
meeting was described by MIR. Eynon
as enthusiastic" and very helpful, in
the movement to organize the new
Hamilton National Bank.
This new consolidated institution,
comprising now seven member banks,
is raising a capital structure of 81 .250,-
900 through sale Of stock at $25
share, of par value Of $40.
The Franklin National Bank today
was understood to have obtained agree
ments from stockholders and depositors
totaiing more than $4,000, 900 to reopen
that bank individually.