Evening star., 1933-09-20
RECOVERY IS SEEN
BY NEW BANK HEAD
Graham Tells Ad Club Capital
Is Pulling Out of Its
Slump.

perity. such as Government economy,
closed banks and depression psychology,
President Graham of the new Hamilton
National Bank forecast yesterday IN an
address to the Advertising Club at the
Raleigh Hotel turn for the better
and better business s~~ Fall.
The Hamilton Bank will add to this
upward swing, he pointed out, by re-
leasing to depositors in seven member
banks a total of about $4,000 900 when
the new merger opens next Monday
morning. to return full banking faclll-
ties to the public.
In outlining the many steps neces-
sary to opening of the new merger. Mr'
Graham referred to the raising OF capl-
tai stock and other details. and ex-
planned loans from the Reconstruction
Finance Corporation to member banks
were reorganiZed and new re1unoeo
loan of more than $5,000,OO0 was ad-
vanced to member banks by the r. F. G.
Let me emphasize here" he said,
"that the new Hamilton Bank does not
owe a nickel to the R. F. C.. Those
obligations rest between the Il. r. =.
and the member banks
Program Is Broadcast.
Mr. Graham was followed by Roger
J. Whiteford, counsel for the Hamilton,
who took up other phases Of the new
financial institution. explaining it as
a community bank" with wide appeal
The speakers were introduced by W. u.
Barkdull, president of the Advertising
Club. A half hour of the program. in
cluding the addresses, was broadcast by
station WRC. Among the guests were
w. Irving Shuman Of the Treasury De-
partment. who has been active In Or
ganization of the Hamilton.
Discussing the prospect for recovery
here, Mr. Graham summarized:
Recovery after all Is proper psychol-
ogy. growing out of sound conditions.
Conditions generally have improved
here. Retail trade is substantially
better
1T is useless to say building and real
estate have been going forward. Real
estate here was the last to feel the
benefit of prosperity and Is now among
the last to be affected adversely by the
depression. 1t should and will improve
In time. for Washington still is under
built
Sees U. S. Policy Changing.
Government threats of reduced per-
sonnel and cut pay rolls are gradually
fading into the reality Of more person.
mel and bright promise Of restored pay.
Frozen deposits in banks are about
to flow again into the channels of trade.
Bank facilities are returning to the
community long deprived of their bene-
fits
washington. the last to feel the
weight of the depression. already Is
rapidly pulling back toward normal
Prospects for Fall business have
nothing but favorable elements. The
National Capital Is ON the verge OF an
economic revival. Let us all pull TO-
gether to make that revival q golden
reality"
Opening of the Hamilton bank next
Monday morning. Mr.. Graham said.
would release to depositors about So
OOOO. which, supplemented by pay
ments made out of insolvent banks In
the form of dividends. would make
available frozen funds TO the total OF
about sl2 900 900. The Hamilton Bank.
he said, would provide complete bank
ing service and the use OF SO per cent
of depositors' funds tied up since the
bank holiday.
Predicts Money Movement.
Release Of the money. he predicted,
would have a beneficial effect. both ac-
tual and psychological Many debts,
no doubt, will be paid" he said, many
expenditures will be made and new OBJ
legations contracted. This cannot but
help Washington. It should prove
vital stimulus to business"
Referring to the other half OF the
depositors' funds left in the hands Of
merger. Mr. Graham said: While the
Hamilton is not directly responsible for
release of this second SO per cent of the
depositors' money, officers OF this new
bank will continue to keep in close
touch with the Treasury Department,
the conservators and others, hoping
that the largest amount possible can be
realized from this second so per cent.
The amount probably will vary with the
different member banks"
Denying rumors that he had come
into the new bank only to get 1t or
ganized," Mr.. Graham said: Il am in
this movement to carry on so long as
am needed
The depression, he pointed out, had
hit Washington later and much less
than other cities. The Is per cent pay
cut in the Government had reduced in
come here by $l5,O0O,0O0, he estimated,
declaring further, however, that this
amounted to cutting the income OF
Washington from $l65, ,00O, 900 to $780,
900 900. But other cities with compar-
able incomes had suffered worse, he
said.
Recovery Program Felt.
The recovery program was having ef-
feet here already, he said. Hotels were
filled with delegations and committees,
Government personnel had been in
creased, and the President had held ou.
promise of restoration of the Is per
cent which had been cut from SAL
aries.
Mr.. Whiteford characterized the
Hamilton as a community" bank be-
cause about $500 depositors in closed
banks had assigned part Of their de-
posits to buy stock and. in addition,
more than 400 citizens. including some
corporations here, had subscribed to
raise the $l,250, 900 capital structure Of
the new institution. More than $4,000
depositors in all parts Of the city, he
said, also gave it city-wide interest.
Mr.. Graham was praised by the
speaker as q business man who had
been trained in banking and thus knew
the business needs for banking service
as well as the sound principles of good
banking.
Mr.. Whiteford explained that the
bank had depositors in many parts Of
the world, including South Africa,
Egypt, Turkey, Italy, France, Latvia,
Greece, Chile, Argentina, Brazil and
Japan.
Forbids Dogs to Bark.
CLEVELAND (R.-If CITY Council