Evening star., 1933-02-01
REDUCED INTEREST
RATE IS ORDERED
Clearing House Association
Cuts Payment on Deposits
to 12 Per Cent.
BY EDWARD c. STONE.

The Washington Clearing House As
sociation has reduced the interest rate
on demand deposits in local banks to
One-half of l per cent, the new ruling
going into effect today Up to today
the prevailing rate had been per cent.
Reduction to one-haif Of l per cent
follows similar action taken by the
New York Clearing House Association
a few days ago when the same cut was
adopted and is the same rate that now
is in force in many other large cities In
the country.
The present condition of the money
market is the reason given for adoption
of the lower rate. Banks are finding
difficulty in putting out their money
at a sufficiently high rate to warrant
the continued payment of l per cent.
bankers state, until present conditions
improve. Up to July l, last. the rate
paid here was 2 per cent on these
checking accounts.
The new rate has nothing to do with
saving deposits in any way. Notices
of the change have been sent to all
members and associate members Of the
Clearing House Association, by the Sec
rotary, Victor B. Deyb2~.
Savings Deposits Gain in d. c.
Some interesting figures are shown
in the summary CT the condition Of all
Washington banks. as of December 81,
1882, the date of the last call, pre-
sented by the controllers Office of the
Treasury Department.
On that date "a local banks owned
United States Government securities ag-
gregating S59,7O9000, compared with
$62,04l 900 on September 80, 1882, and
the much lower figure of S53,085, 900 on
December 81 of the previous year, an
increase of S6,624 900 in the II months
Another interesting item covers cash
in the vaults of local banks. On De-
cember 81 last cash in vaults totaled
$8,239, 600, in comparison with So. 18l 900
On December 81, 1881, another gain dur
ing the year. The statement shows
that Washington banks had total re-
sources on December 81 of S3l6 ,263 600
The local banks have a total paid-ln
capital stock amounting to s22,8l5,O00,
the same as on September 80. The
banks here have reserve for contingencies
amounting to S1.821 ,000 against ST.
$4,000 following the September condi-
ton call and 81 $685. at the end OF
the previous year.
Time deposits. including postal saw
ings deposits, were larger than year
ago. being S114,957, 900, in comparison
with s114,404 900 on December 81, 1881.
Total deposits as evidenced in savings
passbooks also revealed gain during
the year. On December 81. 1882, these
deposits totaled slO1, 900, against the
lower figures cf s1O1 527 900 on the last
day CT 1881.
These final figures reflect the growing
spirit of thrift which has been noted IN
Washington for many months. In spite
of lower Government pay roll. savings
have displayed surprising steadiness
the situation often drawing most favor
able comment from the cltys bankers
1t is predicted that the coming swing
back to more normal economic conol-
tions will see a constant climb in saw
ings accounts, so often called tine
backbone of family prosperity
Rache Office Is Opened Here.
Business in the brokerage otlice on
the ground floor of the washington
Hctel opened today under the manage
nent of J. S. Bache & Co.. New YORK
stock exchange firm. succeeding M. ].
Meehar g. Co. another Exchange mouse
which has conducted the office for the
past four years.
Franl, F. ]. Thiel who was manager
CT the former office, is in charge of the
branch house under the new manage
ment No change was made IN the
perscnnel and the days business was
moving along to all outward appear
ances as if there had been no shift en-
the New York end of the private wires
Jules S. Bache, who founded the
brokerage house back in 1892, was in
Washington for the opening. The vet
eran broker was On his way to Palm
Beach to spend a few weeks at his
Winter hcme. Another partner in the
firm who dropped in today to look over
the cffice was S. M. Gutenberg, also
from New York.
Both officials expressed the opinion
that the office here is one of the mcst
attractive of the % branches which are
scattered all over the Eastern part Of
the United States.
Bonds Leaders on Exchange.
Bonds again led trading on the
Washington Stock Exchange today in
quiet session.
The new Washington Gas Light SIS
appeared in the main list for the first
time, following their listing by the
board of governors yesterday. They
were transferred from the unlisted de-
partment.
Four $1,000 sales in this new issue
were recorded. all made at 944, the
same price at which they changed
hands yesterday. This is also the price
at which the bonds were originally Of
fered.
Washington Railway Electric As
appeared on the board in a $1,000 sale
at 91at and a small Washington Gas,
series A. bond moved at 1001l. On the
stock side, a small lot of Potomac Elec-
trio 81, per cent preferred changed
hands at 10713.
A glance at January shows that buSl-
ness on the local exchange was more
than double what it was a year ago, an
encouraging sign to say the least. The
popularity .of the new S8,500,000 gas
issue was largely responsible for the
gratifying improvement.
Heard in Financial District.
Harry S. Baker of Washington and
Charles Town, w. ", has been appoint
ed supervisor of the Washington office
of H. R. Bryarly g. Bro, general man.
ayers, Home Life Insurance Co. of New
York. Mr.. Baker is a native Wash
ingtonian and was connected with the
local agency of the Mutual Life In
Surance Co. of New York as supervisor
for 10 years before making his present
agency connection.
The market value of 100 representa-
tive common stocks increased $40 OF l
per cent in January, from S9.067 ,062, 900
on December 81 to S9,O95, ,274,0O0 at the
end of the month, according to Frazier
Jelke & Co. Eight of the thirteen sub
groups constituting the index advanced,
while five declined. The largest gain
was $685. 900 in the rails and the
largest loss, So, ,692 900, in the utilities.
Dividend checks were mailed today
to 5000 stockholders of General Foods
Corporation, according to c. M. Chester,
president. This number represents a
tober, 1929. The average individual
holding of the stock is now "a shares