Evening star., 1933-04-04
NEW CHECKS DELAY
PAYMENT OF FUNDS|
Banks Are Urged to Cooper
II ate in Clearing BaiIee
/ Paper.
BY EDWARD c. STONE.


open on 100 per cent basis and are per
forming all banking operations hav,
been urged to cooperate TO the fulles
extent possible in facilitating the han
ding OF checks drawn on bailee fund
in local banks which have not yet re-
ceived Government licenses to resume
unrestricted business.
Several of the local banks which have
not been reopened since the Nation
wide bank holiday are handling these
bailee funds as convenience to theil
regular customers, This method was
adopted to give these former depositors
as much banking service as possible
while efforts are being made to clear UP
the present situation.
In other words, the banks now under
conservators are doing what they can tC
help their patrons and at the same time
hold as much business as they can
The bailee accounts bring in no income
to the banks, as the money has to be
kept liquid at all times and cannot be
loaned out. It has to be kept separate
from all other funds.
This money can be drawn upon at
any time by the depositors. A great
many checks have been drawn on such
accounts during the past two weeks but
there has been a lack of uniformity
among some banks and certain business
houses which have received them. Al
though clearly marked as conservator
checks, which meant that they were
negotiable, many have been returned
to the persons or corporations which
made them out, and other checks or
cash requested.
The banks which have not yet OBJ
tanned Treasury licenses cannot use
Clearing House privileges This means
that such checks must be collected at
the banks on which they are issued.
It Is to meet this situation that the
Washington Clearing House Association
has asked all member banks to make
the handling of these checks as easy as
possible for those who draw them.
Cashing such checks takes time and
involves messenger expense. In many
cases, however, both the banks ana
business houses have shown an unusual
spirit of cooperation in meeting pres
ent conditions and assisting the de-
positors in the banks which are open
under restrictions.
Mortgage Plans Explained.
To clear up a misunderstanding as
to what actually was agreed upon in
Washington between the surety COM
panies and the Reconstruction Finance
Corporation with respect to the guar
anteed mortgage situation, William B.
joyce chairman of the National Surety
Co, states:
1.-The plan ccntemplates the furnish
ing of sufficient cash by the Recon-
struction Finance Corporation to the
mortgage loan companies so that they
NAV offer to all their security holders
a substantial amount of cash and
new debenture for the unpaid balance
running over long period OF time with
a low rate of interest
"All the assets of the mortgage loan
companies underlying the outstanding
bonds will be pledged as security Tor
the advance from the r. F. C. The
plan will give relief to the mortgage
holders in placing half their invest
ment in liquid form and will protect
the balance of their investment with
a guarantee by the surety company.
The relief to the mortgage loan COM
panies at a time when real estate Is
frozen is obvious, while the borrowers
will benefit from a lower interest rate
and suspension of foreclosures.
Today's Trading on ID. c. Exchange.
Business was good on the Washing
ton Stock Exchange again today. The
market started off with 81 600 Wash
ington Gas Light 6s, series B, selling at
1929. The next sale was $1,000 more
at 1929.
Capital Traction stock again sold at
on the exchange today. Potomac Elec-
trio Power 51a per cent preferred came
out at 10534 and advanced during the
session to LOG on small-lot sales
After call, $4,000 Washington Rail-
way 81 Electric IS came out at 883s.
Washington Gas Light SIS, 1858, recorded
two 81 900 sales at 8012 and $1,000 at
81, substantial gain over yesterdays
close.
- At the annual meeting of the stock
holders of the Investment Corporation
of North America, held yesterday in the
Mills Building, the following directors
were reelected:
Rowland G. Ringgold, Sharp & Dohme,
Baltimore, Md: Rolfe E. Boiling, presi-
dent Liberty National Bank; William
M. Jardine, United States Minister to
Egypt, Cairo, Egypt; w. Jett Lauck,
economist, Washington; C. V. Maudlin
managing director, Bureau of Applied
Economics, washington.
The corporation reported a satisfac-
tory year, in spite of the disturbing
business conditions.
Financial District Comment.
The New York City bank stock mar
ket dropped to a new low for 1888 dur
ing the past week, the result being
that the average yield is now more than
712 per cent. The aggregate value of
the 16 leading issues as compiled by
Holt, Rose & Troster ended the week
at SllOO,852 900, against an aggregate
value of Sl,2l2, 1864, 900 at the close of
the previous week, decline of Sl12,-
012,000 or 90 per cent. The 1888 high
was Sl,853 $4,000 on January 10 and
the low point of the depression was
1929, ,395 900, recorded on May 81, 1892
Tenders for the latest $100, 900 900
offering of 9l-day Treasury bills totaled
1888, $4,000 Secretary Woodin an
nounces. The total amount accepted
was s10O,096,00o.
Local bankers today expressed high
commendation of Secretary Woodin's
radio talk on the present banking sit
uation. He stated that over $4,000 of
the country's 10000 banking institu-
tions are now operating on an unre-
stricted basis.
Safeway Stores Sales.
Sales of Safeway Stores System for
and II weeks ended March 25, 1898,
compare as follows:
wks.. March 25. S15.S85,573 s1s,575,0s7
- wks., March 25 46,25T2S6 55,265 ,9oi
Sales for four weeks ended February
25 1888, showed a decrease of 1872 per
cent as compared with like four weeks
of 1892
Stores in operation were 1916 on
March 25. 1888, against 3,527 on March
26 1882.
r. Gilman Smith has been appointed
assistant vice president and Charles E
Neil and Edward NJ. Thierry assistants
to the president Of the North American
Co. Mr.. Smith was formerly statis-
tician. Mr.. Neil continues in charge of
rate research and Mr.. Thierry of adver-
tising.
The Foreign Commerce Committee OF
the United States Chamber of Com