Evening star., 1933-12-31

pected order proved
the turning point in the banking STU
alton everywhere.
The banking map of washington
changed materially during the year.
When the ban was lifted by the Presl-
dent only a part of the Capitals hnan-
cial institutions were permitted 10
reopen on an unrestricted oasls. Inc
year winds up with 81 banks carrying
on unrestricted operations in this city,
The Riggs National absorbed the
Chevy Chase Savings Bank. The largest
consolidation saw the combination OF
seven we'll known banks that had been
doing business in the Capital for many
wears. The Hamilton National, when 1t
opened its doors to the public, was
made up from the live assets OF the
District National Bank. Federal-Amer-
ican National Bark g. Trust Co., Poto-
mac Savings Bank Neutrality-suspicious.
Savings g. Commercial. Northeast Saw
ings. Seventh Street Savings and
Washington Savings Banks.
Status of Other ID. c. Banks.
The end of the year finds the Com
mercial NatioraI in receivership, like
wise the Park Savings Bank. The
United States Savings Bank, IN the
hands of a conservator, has inquired III
many court proceedings in recent weeks,
with the depositors clamoring for part
of their deposits.
The Mount Vernon Savings Bank ex-
poets to reopen in the early weeks OF
! 1894 as a unit of the Washington Me-
chanics' Savings Bank, which has
! always been on full banking operation
basis. The Franklin National Bank alSG
intends to figure in this consolidation.
The Industrial Savings Bank plans to
reopen as a unit bank, with slight
change in name.
According to Treasury announcement,
the banks here and elswhere will go
into 1894 in a strong position and with
ia bright outlook. Only banks held to
tbe in a liquid position were permitted to
Aeopen after the national holiday.
Since that time the Government has
Haken still further action to build up the
sbanks by urging the sale to the Recon-
Sstruction Finance Corporation of pre-
tferred stock or capital notes. In re-
Eouesting the banks to build up ther
Era pital in this way, President Roosevelt
mot only had in mind the Strengthening
sof the banking structure OF the Wnoie
scountry, but also the expansion OF credit
! 10 meet increased demands for loans as
:becomes more rapid While some banks
;lnight need this additional capital, many
others would take the step from the
standpoint Of patriotism the President
said.
The Riggs National Bank was the
first financial institution IN Washlngeotn
to comply with the Presidents request;
il being announced that the capltai
structure would be expanded to the eX-
expected to ratify the plan on January
g. Before Riggs took action, many OF
the biggest banks in New YORK Chicaso
and elsewhere had made similar moves
Permanent Code Considered.
Another vital incident in the banking
situation in this city during the paStt
wear was the adoption of the code OF
fair competition. approved by lle ~ ~
A, and signed by the President OF the the
went into effect in october, but details
of the permanent code have been the
subject of an endless amount OF WORK
in the closing weeks of the year.
The first code related largely to work
ing hours, wages, hours of operations
and scores of other points OF especial
importance to employees and, OF course
to ofhcials The final fair practices code
will have more to do with the depos-
itors. as many new service charges will
he adopted. Hundreds OF these codeS
have been framed all over the country
and all call for additional charges for
services.
Depositors with large balances, COM
pensating balances as they are called
will find no charges placed on checking
accounts. The service charges VIII pe
placed on checking accounts which fall
below a stated amount, or are very &C
five by all the banks. Many OF the
banks have already had such charges.
Fees will also be charged for other serv-
ices which in the past have been rem
dered without cost.
Under the N. r. A. codes no banks
are expected to do any business at a
loss. The codes have increased operat-
ing costs. The fees will more than OIL
set these added expenses. While the
list of new charges Is long one, IL Is
stated that only two or three OF the
new rules will affect any one depos1tor.
The code for Washington banks and all
others now await Gen. Hugh S. John-
sons final approval.
Banks Now Insuring Deposits.
One more great banking innovation
has come into the picture this year as
a result Of the passage Of the Glass
Steagall banking act-insurance OF de-
posits. Beginning when the banks
open Tuesday, all banks which are
members of the Federal Insurance De-
post Corporation will insure their de-
positors against loss up to S2,500.
This new protective measure will re-
CONTINUED ON Second Pase)