Evening star., 1933-12-23
INSURANCE SALES
DROP IN DISTRICT
South Carolina Reveals Best
Record in Fifth Re-
serve Area.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
The District of Columbia made q
most unusual and unenviable record in
new life insurance written in November,
according to the monthly national sur
vey received today from Hartford,
Conn, new business being 30 per cent
below the November, 1882, mark. This
figure placed the Capital behind all the
48 States. or at the bottom of the list.
South Carolina made the best record
in the Fifth Federal Reserve district,
recording a gain Of 90 per cent, being
exceeded only by Nevada with a ga per
cent advance and wyoming with 80 per
cent improvement. Next to South
Carolina in this district came West Vir-
ginia which wrote 10 per cent more in
Surance in November this year than a
year ago.
North Carolina wrote per cent more
business than in November, 1892, which
was far ahead of the average of the
United States. This average was down
3 per cent. Maryland and Virginia
we're both below the national average,
reporting a drop Of per cent compared
with November, 1882.
Rhode Island and Montana were
nearest the District of Columbia in
Is per cent from last year. The report
gives no explanation of the decrease in
business here. 1t is suggested that some
of the leading agents must have been
doing their Christmas shopping early"
and were not after prospects as ener-
getically as usual. Other recent months
have shown improvements and many
agents already report an excellent De-
cember business.
November Sales in Dollars.
New insurance in Washington in No
vember totaled $3,393,000. Maryland
wrote $7070,00 during the month; Vir-
ginia policies totaled SIS, ,259 900. In the
same period West Virginia reported
S3.7s4,0 900. North Cardinals new insur-
ance amounted to S6.819, 900, and South
Cardinals to S3,3S0,O0O.
The South Atlantic States as a group
came within l per cent of writing as
much insurance in November this year
as last. For the first IL months new
business is within is per cent of the
like 1882 period. Furthermore, tn
trend in sales in recent months has
been steadily upward.
The 1888 volume of life insurance,
although considerably smaller than that
of the prosperous years before 1929,
nevertheless represents an increasing
proportion of the country'S income.
Fifty Years ago annual sales totaled
s200,o0o,ooO; more than twice this
amount was sold in every month OF
1888.
The large amount Of money being in
vested in life insurance is more easily
understood when it is considered that
IN every working day in 1888 the Amer
lean people purchased an average Of
over S23,000,000 of new life insurance
protection. This figure represents ordi-
nary life insurance only and does not
include investments in annuities.
The figures are prepared by the Life
Insurance Sales Research Bureau at
Hartford, and represent the experience
OF 79 companies having in force SO per
cent OF the total ordinary legal reserve
life insurance outstanding in the United
States.
First Bank to Expand Capital.
The Riggs National Bank is the first
washington financial institution to an
nounce a plan to expand its capital
structure in accordance with the request
Of President Roosevelt that banks all
over the country sell preferred stock to
the Reconstruction Finance CORPORA
ton. AS noted in yesterdays Star,
Riggs proposes to issue 81, 100000 cum
mulative 5 per cent preferred stock. as
authorized by the GIaSs-SteagaII bank
ing act OF 1888, offering it first to the
banks shareholders and any not sub
Scrlbed for by the stockholders to the
r. F. c. The R. F. c. has already
authorized the purchase of as much of
the issue as Is not taken by the stock
holders.
The proposal will be placed before
the Riggs Bank stockholders at the an
nual meeting on January 9, for their
ratification. The stock will be brought
out at S100 per share, the new capital
iZation to become effective February l,
1884. 1t leaves unchanged the present
capital represented by S3,000,000 COM
mon stock and surplus of $4,000 900,
and at the same time will give the in
stitution in excess of S7,500,000.
President Roosevelt's program of
strengthening the capital structure of
banks throughout the country has been
adopted by many banks in other cities.
Many New York and Chicago banks
were the first to announce expansion
plans.
The policy has the universal ap-
proval Of the clearing houses. The
Washington Clearing House Associa-
ton Endorsed the move about weeks
ago, leaving to each individual bank
the question Of eniarging its capital
or leaving it unchanged.
The additional capital already voted
will make vast amount of additional
Credit available to business as national
recovery proceeds.
Cleaned in Financial District.
A general denial of the cry that the
securities act has stopped the flow of
capital to industry was made by Bald
win B. Bane, chief Of securities division
Of Federal Trade Commission. in an ad-
dress before the Bond Club of Philadel-
paia. Declaring that every one would
be better served by cooperation in
stead of opposition, Mr.. Bane said:
''If half of the energy expended upon
propaganda for amendments to the act
were enlisted in an effort to advise the
commission in the wise exercise of its
powers, the Government and iSsuers,
bankers, lawyers, accountants and other
experts would be far nearer to a solu-
tion Of their problem"
At almost the same time, Senator
David I. Walsh of AIassa achusetts was
telling the Boston Bond Club that he
favored changes in the securities act
and felt that some would be made dur
ing the coming session of Congress.
A total OF pa of the national banks
in Michigan that failed to open i'm
medately after the banking holiday
have been rehabilitated, reorganized
another bank. Comptroller of Currency
O'Connor reported. This freed $685.
672,OOO Of the $567 100000 frozen de-
posits Mr.. O'Connor said.
F. NJ. Law, president of the American
Bankers Association, has announced
that the spring meeting of the executive
council of the association will be held
at the New Arlington Hotel, Hot Springs,
Ark, April 1913. 1884.