Evening star., 1934-03-05
YEARS PROGRESS
IN BANKS CITED
Bearing on Trade Outlook
Stressed by Hamilton
Institute Report.
BY EDWARD c. STONE.

1llSllIule CulISIlt pullelll "IllCll It-
views some of the major changes that
have taken place since the bank holi-
day Just a year ago. Says the insti-
tute:
"A year ago the Nations financial
system was in state of complete
paralysis. The changes Wrough in the
last year are not Of interest so much
as matter of history but for their
bearing on the business outlook.
Looking first to the supply Of
money and credit, and to the demand
the most striking change is. of course.
that which was brought about by re-
valuation of the dollar. Our supply
of money and credit has been in
creased more than S3,000,000,0O0, and
this has been accomplished principal
1y through marking up the price of
gold.
The component items of Federal
reserve credit show the increase to be
due to the purchase of Government
securities Member bank borrowings
were S26l 900. 900 less than last year
On the demand side, the healthy de-
velopments are the reduction in cir
culation and the increase in bank re-
serves. The treasury cash and de-
posits is source from which dollars
may be set going to add eventually to
the deposits of the commercial banks
AS indicated by the returns Of the
reporting member banks, deposits have
been considerably expanded during
the past year Total deposits of the
reporting banks were sl7.036 900. 900
as of February q, compared with
Sl5,280, 100000 year ago. an increase
of S1758 600 COO. OF this increase
1929 ,o000 900 consists of the gain in
Government deposits and S597,O0O. 900
Is accounted for by the gain in net
demand deposits, Time deposits were
S120.000.000 lower.
The upbulding of deposits and the
existence Of the high ratio of deposits
to loans and investments are both
developments which may be taken as
practically essential to any pronounced
business Improvement which is to be
lasting" the Review concludes.
Stock Transfer Long DELAYED.
Officials of the Capital Transit Co.
are unable to state when the new
stock certificates will be issued. com
pleting the exchange of the stock of
old Capital Traction Co. which dis
appeared when the consolidation of
the two street car systems went into
effect.
Tbs merger went into effect on De-
cenloer l. On the Washington Stock
Exchange. Capital Traction stock is
still being traded in pending the trans
Ter to Capital Transit certificates.
Member of the exchange comment on
the fact that the present sales are in
stock OF company which is no longer
IN existence. The certificates. of
course. are all transferable into stock
OF the consolidated company.
Red tape" required by the Federal
Trade Commission is assigned as the
cause OF the delay in distributing the
new certificates. AS it is merely the
transfer of an old stock. and does not
Involve the issuing of any new shares.
the financial district does not under
stand why holders are obliged to wait
so long for their certificates.
Mount Vernon Bank Opens
The Mount Vernon Savings Bank
closed since the bank moratorium lust
one year ago at this time was re-
ported today as unit Of the Wash
1ngton Mechanics Savings Bank.
In the consolidation the bank be-
comes the headquarters Of the Wash
Ington Mechanics Savings, this down.
town office being located at Ninth
street and Massachusetts avenue.
Clarence F. Burton. who was recently
elected president of the Mechanics
Bank, has his Office there.
Today's reopening of the Mount
Vernon Bank is noted elsewhere in
The Star About 100000 was re-
leased to depositors, or 20 per cent of
their deposits.
AS the Mount Vernon is now con-
nected with an institution which has
been in successful operation for 80
years, it was not believed that with
draWals would be large. All deposits
up to $4,000 are also protected by the
Federal Deposit Guaranty Corpora
tion which has been a vital factor in
restoring confidence in banks all over
the country
The Mount Vernon banking Offices
looked like hothouSe today, with a
host of flowers sent by fellow bankers
and business associates of both the
Washington Mechanics Savings Bank
and the old Mount Vernon Bank In
due time the Franklin National is to
become an added unit in this con-
solidation.
Bankers Here Are Cheerful.
Starting of the second year under
Government efforts to Danish the de-
preston found local bankers cheerful
over the outlook. Recovery has al
ready made marked progress, they
say, and further advances are held
certain There is a long way to go
yet, but business in the past few
months has vastly improved. The
foundation on which to build further
is believed solid.
Washington brokers declare that
most of the recent let-up in trading
on the New York Exchange has been
due to uncertainty over the regula-
ton bill now before congressional
committees. Although the bill will
not 60 into effect until next October.
the market always discounts coming
events a long time in advance.
Things are expected to improve as
soon as it is known Just how the new
bill will read Incidentally. local
brokers believe that the proposed
measure will be ironed out into a
workable bill, one that may slow up
the volume of trading, but not cause
any such dire results as were at first
predicted.
d. c. Exchange Active.
Capital Traction SIS led trading on
the Washington Stock Exchange to-
day, with five separate $1,000 sales
being recorded at 1872. This was
long jump from the last sale at. ia.
Anacostia Potomac Railroad first
IS sold at 65 on $1,000 turnover.
All the bonds affected by the street
car line merger have recently dis
played strength, furnishing an out
standing feature of recent sessions.
Potomac Electric Power 51a per cent
preferred moved in very small lots at