Evening star., 1934-08-24

the association, Iobn 7 rboua.
says In COM
munication addressed to all its 12,-
900 bank members urging their sup
port of the plan.
THE credit plan provided for un-
der the national housing act and the
regulations of the Federal Housing
Administration are workable, allow
ing private lending agencies to extend
long-term credit to all worthy bor-
rowers," Mr.. Laws letter says. "This
particular type of loan seems to be
especially entitled to careful and SYM
pathetic consideration from the men,
bers of the American Bankers Asso-
ciation. In addition to putting idle
funds to work it will afford employ
ment for all types of labor engaged in
the building trades and also the ma
terials consumed will provide further
employment for those engaged in the
manufacture and sale of building ma
terials.
"The American Bankers Association
Is lending its help and assistance and
Is cooperating with the Federal Hous-
ing Administration in this most con-
Association has appointed liaison
officer TO furnish the contact between
the Government authorities and the
banks and further liaison officers will
be appointed in each State as the
need for them develops. The reaction
to this class Of loans among all banks
throughout the country fas been uni
formly favorable"
Thomas Assumes New Duties.
John j. Thomas, just appointed vice
governor of the Federal Reserve
Board by President Roosevelt. has
assumed his new duties, this move
being easy as he has been member
of the board during the past year.
Judge Thomas expects to make no
important changes in Reserve Board
policies at present, is in full accord
with the principles OF the new deal
and says that the board and the
Treasury are in complete working
harmony. He will be the acting
chairman of the board until new
governor is named to fill the place
vacated by Gov. Eugene r. Black
who has returned to his former po-
sition as governor of the Reserve
Bank of Atlanta.
The Reserve Board has had no vice
governor since Edmund Platt re-
signed from office five years ago.
Judge Thomas is from Nebraska,
member of the bar of that State,
and a strong administration sup
porter. He is s. years old.
From the tenth Federal reserve
district, he Is naturally particularly
familiar with agricultural conditions
in the farm belt. Known as "a
friend of the farmer" Judge Thomas
stresses the need Of higher prices for
agricultural products. For a long
time he has taken the view that
a better distribution of the Nations
income is required so that agricul-
tural centers may go forward with the
industrial centers in the march back
to prosperity
He is likely to preside at the Re-
serve Board meetings for some time
as the next governors appointment is
not expected just now.
In summing up the improvement
shown in the banking situation in the
past II months, President Law of the
American Bankers Association, says
in the Bankers Magazine for August:
Banks everywhere are shown to be
highly liquid and there has been
substantial increase in deposits.
Hoarded money has been returning to
the banks, the rapid increase in pos
tai savings has been checked and
converted into a decrease, and it
may properly be said that public con-
f1dence in banks has been restored.
There are over $4,000 banks in the
country holding membership in the
temporary insurance fund and only
two of these (and they were small
banks have had any trouble in the
past six months.
THE crying need of the banks now
is good borrowers. These good bor-
rowers will return to the market in
greatly increased numbers as soon as
their fears and uncertainties are fur
ther allayed and as soon as the
probability of profits appears. In
every bank in every community in the
land good borrowers are welcome"
The same magazine quotes r. S..
Hecht. vice president of the A. B. A.,
as stating that: The extent to which
the Federal Government has entered
into actual banking operations has
now become the outstanding problem
facing the bankers of the United
States
Brokers Expect Fall Pickup.
Brokers in Washingtons financial
district are more cheerful than last
week because of the recent increase
in volume of trading on the New York
Stock Exchange. The gain is nothing
to brag about but is a hopeful sign
they say.
Increased activity is expected soon
as there is always some kind OF q
pickup every Fall. What the security
markets will do depends largely or
the extent of the business revival
Some improvement is looked for ir
September but by october the daily
volume should present marked in
crease and the security turnover be
comparatively active, in the opinion
Of leading financiers here.
Today's Trading on Exchange.
Washington Railway & Electric 4
opened trading on the Washington
Stock Exchange today, with 81 .00(
selling at 97H. This is the sam,
price as charged in other recen
transactions.
Potomac Electric Power IS, 1858
were also strong, $1,000 changing
hands at 109k. These were the day
only bond sales.
Merganthaler Linotype appeared oil
the board at 2l1a, unchanged iron
the last previous sales. Two l0-shar
lots snapped ownership,
Capital Traction stock also cam
out today, two 10-share lots movln
at 2319, unchanged, closing with z3l
bid and 231s asked.
The National Dairy dividends an
the North American dividends @er
welcomed here where the companie