Evening star., 1933-08-15
BANK REOPEN|NGS
TO HELP CAPITAL
Hamilton Merger Completion
Held Favorable Factor
for Near Future.


ward to the opening of the proposed
Hamilton National Bank merger, with
its release of $4,000 900 in deposits, as
one of the most favorable factors in the
near future for the National Capital
While the exact date for opening the
bank has not yet been determined by
officiels and the Treasury Department,
1t is known that most of the major OBJ
stacles have been Surmounted, and
there remain now merely large num-
ber of details including an immense
amount of clerical work.
The effect which the bank Is ex-
pected to have upon the business and
financial situation here is believed to
be very substantial The tying-up OF
deposits in the eight member banks OF
the Hamilton, as well as the four other
unlicensed institutions in this city since
March S, has been sharp deterrent to
business progress here.
Only one of the unlicensed banks
the Chevy Chase Savings Bank-has
been reopened, through a merger WIN
the Riggs National Bank.
In addition to the eight banks in the
Hamilton merger, it is known the
Franklin National Bank also is making
progress toward reopening.
Analysis Is InleTcStiHS.
Drawing a parallel. with reservations
betUeen the Governments new recovery
program and prohibition, to declare
they were both experiments into the al
fairs of the individual, Col. Leonard
P. Ayres, vice president of the Cleve-
land Trust Co., makes a sharp analysis
of the present national situation in
the current number of his business bull
letin.
Our great experiment in the ma
tional regulation of all business is get
ting under way at time when our
other great experiment of nationa.
prohibition is drawing to close" says
Col. Ayres Both were initiated in
times of crisis The earlier one had
its inception during the period of deep
patriotic emotion aroused by the great
war. The present attempt is rendered
feasible by the generally cooperative
response of the people to the recovery
efforts of the administration. Both ex-
periments involve governmental inter
vention into the intimate affairs of
great numbers of individual citizens,
and in both cases successful outcomeS
depend on retaining the sustained and
united support of the mass of our citi
ZenS
We shall not know for some weeks
or months how effective the new meas
ures will prove to be in spreading work.
raising wages and increasing consumer
purchasing power. The most powerful
element working for their success is
the fact that they run with the eco
nomic tide, for in most of the countries
of the world employment is increasing,
production is moving up and the gen.
eral levels of prices are advancing 1t
is a favorable factor of the first i'm
portance that the new effort is we'll
timed
"A less opportune element is that in
duStrial production, having increased
in this country with abnormal speed
during the past four months, has re-
Gently been showing some signs of slow
ing down. Part of the reason for this
is to be found in the natural influences
OF the new recovery legislation For
good many weeks past manufacturers
have known that prices would shortly
be higher because of the threat of
Initiation, and wages higher and hours
shorter because of regulation. Such
knowledge could only result in the buy
ing of commodities and the production
OF goods in excess of immediate re-
Quirements.
Adjustments Faced.
That first rush of feverish produc-
tion is now slowing down Business has
now entered upon the second phase of
the recovery effort during which it is
attempting to adjust itself to the multi
pie requirements of the new codes. In
the weeks directly ahead more money
Will be paid out in wages and higher
prices will be asked for manufactured
goods. If then business activity still
increases, durable recovery will gain
momentum"
The latest Offering of 81 day Treasury
bills has been oversubscribed more than
three times, 1t was announced by Acting |
Secretary of the Treasury Acheson.
The total amount applied for was
1921 .34l 900, of which SIS 900 was
accepted. The accepted bids ranged in |
price from 99.940, equivalent to a rate
OF about 0.24 per cent per annum, to
1928. equivalent to rate of about 028 |
per cent per annum, on bank discount !
basis. Only part of the amount bid for |
at the latter price was accepted. The |
average price of Treasury bills to be is
sued is 99933 and the average rate is |
about O.26 per cent per annum on a |
bank discount basis. The bills are dated |
August 16 and mature November Is
Wholesale Prices Off,
Wholesale commodity prices again |
declined during the latest week, accord |
ms to the index of the National Fer
tilizer Association. During the week |
ended August II this index declined 7 |
points from 67.2 to 665 (The three
year average. 19261928, equals 1907 |
The latest index number is 13 points |
lower than it was a month ago and is |
AZ points higher than it was at this |
time last year |
During the latest week only one of |
the IA major groups in the index ad-
vanced, declined and showed no |
change. The advancing group was |
metals, but the gain was small Sub |
stantial declines were shown in fats
and oils. foods and textiles. Miscella- |
neous commodities declined only slightly. |
Twenty individual commodities showed |
higher prices during the latest week and |
% showed price losses. During the pre-
ceding week there were "a price gains |
and So price losses Commodities that |
advanced included raw sugar, fancy |
flour, corn, oats, wheat, rye, good cattle, |
lambs, finished steel, heavy melting |
steel, tin, silver, rosin. petroleum and |
calfskin. The declining commodities !
Included cotton, cotton yarns, woolen |
yarns. burlap. silk. lard, butter. prac-
tatoes. canned tomatoes, barley. most |
feedstuffs, hogs, basoline and rubber.
Personal Mention.
Nelson B. O'Neal, assistant vice presi- |
dent of Riggs National Bank, has re-
turned from vacation at Atlantic City.
Kenneth F. Brooks, assistant trust off, |
Ger Of Riggs National Bank, has re-
turned from vacation.
William w. Keck, assistant treasurer |
OF the American Security g. Trust Co., |
has gone on vacation.
Several representatives Of Washing |
ton banks plan to attend the National |
Public Relations Conference in New |
York September II to IA, under au-
spices of the Financial Advertisers As
ISOLATION.