Evening star., 1934-07-15
RICHMOND BANKS
PLAN TO REDUCE
INTEREST SHARPLY
New Time Deposit Rates
viii Range From Two to
Hall of | Per Cent.
TAKEN AS INDICATION
OF TREND ELSEWHERE
Capital Financial Circles Stirred
by Schedule That Will Be
Lower Than Here.
BY HAROLD b. ROGERS.

BY HAROLD b. ROGERS.
Bankers of Richmond. Va. are
preparing to put into effect a reduc-
tion in interest rates on time deposits
which will be much more drastic than
the reduction now in effect here in
Washington. according to reports
reaching local financial circles here
yesterday
The new Richmond rates viii go
into effect August / and under rules
and regulations in Virginia must be
formally advertised.
The Richmond schedule provide
for a maximum rate of per cent
interest on the first s. 900 and for
oil deposits over that an interest rate
OF only = OF per cent
Washington bankers received word
OF the new move IN Richmond, with
keen interest, because they say it
shows the trend in other cities is to
cut the time deposit interest rates
even lower than the ones here in
Washington.
Capital Rates Outlined.
Briefly the new Washington maxi
mum rates OF interest were outlined
by the Washington. d C. Clearing
House Association as follows:
On accounts in existence June 20.
maximum rate of "a per cent.
On new accounts after June 30,
maximum rates as follows:
Showing a balance of SIS 900 or less,
az per cent.
Showing a balance Of more than
$4,000 and less than $4,000, 2i2 per
cent on $1,000 and per cent on the
remainder.
Showing a balance OF more than
$4,000, ga per cent on the first
$4,000; 2 per cent on the second
$5,000 and a per cent on the re-
mainder
1t is pointed out that these rates
here in Washington are the maxi
mum" that may be charged by local
banks and It developed yesterday that
some of the banks are paying less
than the maximum rates of the clear
ing house association resolution.
The trend toward lower interest
rates on time deposits appears to be
general throughout the country, ac-
cording to local bankers They feel
1t Is justified. ond that the lower rates
adopted elsewhere shows that the
Washington depositors will benefit
from higher rates as a rule than de-
positors in other cities.
Dividend Again Planned.
Again the United States Savings
Bank is planning to pay dividend,
after two previous unsuccessful at
temptS Blocked twice before by Col.
Wade H Cooper. former president
of the institution, the dividend now
will be paid some time this week.
according to an announcement yes
terday by Controller of the Currency
O'Connor
The dividend will release about ST.
10000 from the bank which has
been closed since the Presidents holi-
day, and should mean much to the
business community in the vicinity
of the bank, at Fourteenth and U
streets. Release of million dollars,
however. probably will have bene-
hcial effect throughout the city. TO
a certain extent The dividend of
65 per cent was made possible through
q recent loan by the Reconstruction
Finance Corporation. Col Cooper is
still in court, however. in an at
tempt to regain control of the bank.
What will happen to the old bank
corner at Fourteenth and U streets
is a matter Of considerable interest
in financial circles here. This is the
center of a substantial wholesale and
retail business section, and quite a
distance from any other bank The
original plan to reopen the United
States Savings as a branch of the
Hamilton National Bank was drop
ped in the midst of a court fight by
Col. Cooper, but ii is believed by GER
tain interests that the bank corner
is sull a valuable spot for a bank.
and that an effort OF some kind will
be made to re establish bank there
Informal negotiations have been un-
der way from time to time looking
toward the establishment of either
q community bank. or a branch bank
there. But no definite plan has been
worked out. When the United States
Bank closed it was listed as having
on deposit 1892 4S0
Wide Variance Seen.
Out of the closed bank situation
here will come some future dividends
10 oepoSitors. as receivers hQudate
assets 10 the point where they have
Eufhcient funds. or are able to borrow
from the Reconstruction Finance
Corporation enough to pay dividend.
One OF the outstanding features of
the closed bank problem may be said
10 be the wide difference IN the
status OF the closed banks Some
have much better assets than others,
and more Of them proporuonately. so
that dividends may be expected much
earlier from some than from others.
Meantime assessments against stock
holders in five banks totaline So. .340.-
Geo are under way Cf1cial notices
were mailed out yesterday BY Cary A.
Haroee, receiver of the Federal Ameri-
can National Bank & Trust Co. to
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