Evening star., 1934-01-07
Protection of All $500 Ac'
counts Brings Money
Out of Hiding. =
SOME H0ARDED FUNDS
! ALSO PUT ON INTEREST
Weekly Traction Passes Continue
in Favor-First Quarter
Sentiment Hopeful.
BY EDWARD C. STONE.

BY EDWARD L. SIONE.
Deposits in Washington banks are
said to have stepped up substantially
since the law went into effect last
Tuesday insuring all accounts up to
S2,500.
"Hoarded" funds have been extracted
from many a safe deposit box and
pushed through the bank tellers' win
dows. bankers report, safe deposit de-
partments having been extra active dur
| ing the last few days.
OF course most Of the "hoarders' do
not advertise the fact that they are
transferring hidden money onto bank
passbooks. However, some patrons
have been frank to announce that the
Federal Deposit Insurance Corpora
tion's great protection innovation has
distracted all their fear of losing their
money.
While it has been generally supposed
In the financial district that there has
never been much boarding in wash
ington, perhaps there has been more
! than had been realized. At any rate,
lots of small sums are coming out into
daylight. When a depositor puts IN
$4,000 or more, all in S100 bills, 1t Is
pretty good guess that the money
! came from 8 safe deposit box. The
same Is true regarding small amounts
Of gold. about which there has been SO
much discussion.
The first week of the New Year also
brought in the normal business de-
posits, regardless of the insurance
guarantee pool likewise January divi-
dends and interest. No figures are
available, but the new safety deal Is
certainly getting away to a good start.
Rosey predictions are coming true.
The trend is especially interesting
following the report of the controller
call made Friday, asking for the condi-
ton of all local banks on December 80,
the last business day Of the old year
/: The call revealed an excellent aggre-
gate gain in deposits in the Capital,
Compared with the totals made in Oc-
tober.
One more vital factor in the bank
deposit situation here during the past
few days has been the opening OF
Congress. which greatly expanded tne
eity's population.
Car Passes Remain Popular.
Since termination of the Christmas
rush sales Of passes on the lines OF
1the Capital Traction Co. naturally
have slowed up somewhat. sales OF
passes for the week ending last night
totaIed 1892 of the 81 variety and
2,252 of the sl.25 paSteboards, making
a total of 36,144.
During the last week in December,
which was the fourth week OF opera
tions under the merger, the company
sold 3O.728 of the 81 passes and 2'1@o5 @
of the s1.25 kind, making total LOT
the week of 32,88l.
The record high point was reached
Under the third week OF consolidated
arrangement, or the week ending De-
cember %. The total was 45,015. Dur
ing the second week street car con-
>ductors sold 39,288 passes, while the
total number of passes purchased our
ing the first week they were on SAFE
was reported as 2S,6O8.
Earnings for December will soon be
announced and are said to be hlghly
Favorable. This will be the first
monthly report under the new deal.
The District of Columbia agency OF
the Massachusetts, Mutual Life lnsur-
ance Co., held a luncheon recently at
the Lee House in celebration OF the
closing of its 1888 year among tne -11,
guests were E. B. woodruff and Harry
w. Little, manager and cashier, reSpec-
lively of the company's mortgage ONCE
N this CITY, and Robert Field OF the
company's home Office agency
John F. Cremen. general agent, re-
viewed the 1888 results and announced
that Leopold V. Freudberg and Dan j,
Harrison were first and second in paid
for business Also that Mr.. Freudberg,
Miss May Belle Raymond, Miss Lucetta
W. Stockbridge, Norwood L. Summons
d cfr, I1od y1oid for more
business in 1888 than in 1882.
The agency reported gain for 1888
over 1882 and in December submitted
over $500 900 of paid business to its
home Office The feeling in regard to
1884 was one Of distinct optimism.
First Quarter Sentiment Hopeful.
Despite existing confusion and uncer-
tainty, merchants and manufacturers In
nearly all lines are looking forward
hopefully to the early months Of the
new wear SAYS the National City Banks
latest review. To back up the assertion
the bank adds:
Along with natural recovery, the
stimulating effects of the Government
exnenditures in the construction indus
tries and through the Civil Works Ad-
ministration and other channels, viii
be experienced in increasing degree as
Spring approaches. These are two IN
fiuences for better business in the COM
ing quarter.
It is a notable feature Of the situa-
tion, looking back over the past SIX
:1months. that neither the controversless
sset going by the economic policies OF
THE Government, nor the declines lr
.materiaiiy weakened the general belief
that business is on the road out OF the
depression.
Robert C. Jones, head Of the invest.
ment firm of the same name, LETT
Washington for Florida, where he VIII
enioy a three-week vacation. He VIII
spend much time fishing, making nj
headquarters at the HillSboro Club
Pompano.
The majority of the Capital 81 open
banks will hold their annual stock
holders meeting next Tuesday. This is
the date set for all national banks to
meet and many trust companies ano
savings banks have adopted the same
date.
AS a result of section ga of the
banking act of 1888, Matthew S. Sloan
has resigned his membership on the
hoard of directors of the Guaranty
Ehis position as member of the board
sand OF the Advisory Committee Of the
irving Trust Co.
The Finance Co. of America, in Bal
umore, has declared the regular quar-.
terly dividends Of 10 cents on the class
A and B common stock: 43A cents on
the z per cent preferred and 8% cents
on the per cent class A preferred, al
payable January is to stock Of record
january S. ...-....