Evening star., 1934-05-31
Conditions Reported Good.

~sSPOa wv ooOus
At the present moment, the report
said, both wholesale and retail busi-
ness conditions are good. due to the
free spending of a large number of
Government employees and visitors
from out Of town.
Washington banks hold excess re-
serves capable of meeting all legiti-
mate needs of local business men for
banking credit, the statement as
serted, thus making business and
banking conditions in the District
favorable. The real estate situation
is improving and there are fewer un-
rented houses than there were a year
ago.
The $2,500 deposit guarantee,
liquidation of loans during the year,
increase in surplus reserves to support
credit, the large amount of money in
circulation were assigned in the re-
port as among the most favorable in
f1uences working toward continued
improvement here.
The banks are confronted with the
question of what to do with their sur
plus reserves. There is little demand
locally, the statement said, for high
type, short time, self liquidating
loans. There is need, however. on
the part of small business concerns
for additional working capital.
At the present moment the Gov
ernment is the biggest borrower of
money in the country. Part of the
quick assets of District of Columbia
banks and trust companies Is made up
of Government securities which, in
an emergency, can be borrowed or
used for an expansion of credit.
The Resolutions Committee recon-
mended that surplus reserves in the
local banks be used in making short
time, well-secured loans for produc-
tive purposes, whether such loans be
high class commercial loans or loans
to provide working capital which will
give employment to wage earners and
offer profit to the borrower, but
that all loans Of speculative nature
and loans with doubtful security
should be avoided.
Housing Program Supported.
One Of the resolutions urged men,
bers of the District Bankers Associa-
tion to lend their support and en-
couragement to the Presidents pro-
gram for the modernization and i'm
provement of homes and take SYM
pathetic and cooperative attitude
toward improvement of methods of
mortgage financing.
The association urges the passage
by Congress of legislation recon-
mended by the administration to ex-
tend the terms of the temporary in
surance fund to July /, 1885, in or
der that more time may be given
to the study of the deposit Insurance
plan. Two other important resolu-
tionS said
Resolved. That the provision of
section 81 of the banking act Of 1888
be amended to restore the prior pro-
visions of law as to qualification of
directors, which provided that the
aggregate par value shall not be less
than $1,000 unless the capital of
the bank shall not exceed $25 900,
in which case the aggregate par value
shall not be less than $780,"
BE it resolved, That the District
of Columbia Bankers Association
urge upon the attention of Congress
the importance of amending sections
80 and 33 of the banking act of
1888 in order to give the Federal
Reserve Board discretionary power
where the service of such director
will strengthen the position of the
bank through his knowledge of Sc
curity values and where in their
judgment such service is not incom-
patible with the public interest"
The resolutions were presented by
Robert " Fleming, chairman; the
other committee members being Cor
coran Thorn, H. H. Mckee and M.
D. Rosenberg. The final resolutions
lauded the officers of the association
for the accomplishments of the past
year, expressed gratitude for the ac-
curate financial news appearing in
the newspaper and for the assistance
rendered by the associations general
counsel.
Best Convention Yet Held.
The party of 200 bankers and
guests reached Washington early this
morning aboard a Chesapeake & Ohio
special in charge of the genial gen.
eral passenger agent, James B. Ed
munds, who has taken charge of so
many previous trips.
Many financiers expressed the opin-
ion that the four-day meeting at the
Greenbrier Hotel was the best of the
16 conventions so far held. Most of
the topics discussed were especially
timely, relating to conditions and
problems of special importance to
local banks.
The entertainment features were
thoroughly enjoyed and the golf
courses were never better. Every
committee functioned to perfection.
That's why the convention was so
successful. 1t did not lust hap
pen," as was said at White Sulphur,
without weeks Of previous plepara-
ton.