Evening star., 1934-12-31
Deposits Mount $40,0O0,-
OOO-Insurance Helps to
Revive Confidence.
DIVIDENDS Distributed
BY CLOSED INSTITUTIONS
Two New Bank Presidents Are
Named-Fleming Becomes First
Vice President of A. B. A.
BY EDWARD C. STONE.

Momentous developments have been
recorded in Washington's financial
district during 1884.
Tremendous gains have been
chalked up in aggregate deposits Of
the 20 banks and trust companies.
Deposits up to $4,000 in all the
banks in the Capital are insured un-
der the plan of the Federal Insurance
Deposit Corp.
At the same time uniform measured
service charges have been put into ef-
feet, as recommended by the Wash
ington Clearing House Association.
OF equal Importance to thousands
of citizens have been substantial divi-
dend payments to depositors in closed
banks now in liquidation.
The Capitals record in retail sales
gains Is one of the most striking of
any city in the country and has helped
to place the Fifth Federal Reserve
District far ahead of most of the
other II districts.
Deposits Gain $4,000, 900.
The controllers last call for the
conditions of all Washington banks,
dated october II, revealed total de-
poSits of $256, ,630,881, an increase of
$39, Az, ,307 over the call in the cor
responding month year ago. 1t Is
expected that total deposits will wind
up 1884 at about the same figure, or
slightly higher, which means an ad-
vance of around $40,000,000.
The big point is that deposits have
climbed back to normal, if normal
means the figure at which they stood
before the Wall Street tumble and
the beginning of the depression The
manner in which money has been
poured into the banks during 1884
has been one of the most encouraging
marks Of progress.
The return of confidence has been
another highlight. At the beginning
up to s2,5o0. After July l the Fed
eral Deposit Insurance Corp. in
creased the amount to $4,000 and it
was soon announced that this move
had given deposit protection to about
81 per cent of all bank depositors here
and all over the country. While some
bankers bitterly object to strong
banks helping to insure the funds in
less well managed banks, yet finan-
ciers generally agree that the in
surance innovation has proved a great
confidence builder, a highly desirable
and important result.
Banks Halt Service Losses.
Adoption of standard measured
service charges on November l was
the climax of move that has been
growing in Washington for years. 1t
had gained headWay until all the
banks had some form of service
charges, although the fiat rates diff
fered quite widely. On average bal
ances of from 81 to $l00 a month
there is now charge of 81, 10 checks
or other items being permitted. From
SOL to 5000 there is no charge, pro-
vided only eight items are used. The
new schedule goes on up the scale
with more items allowed as the size
of the amount on deposit increases.
AS large sums are reached, there is
no service charge unless a host of
checks are drawn or deposited for
collection.
Items in excess of the schedule
number are charged cents each,
with minimum charge for excess
activity Of Is cents. The public as a
whole has accepted the new service
with good grace. In cases of criti-
cism most of it has been directed
against the 25-cent minimum fee
for excess activity. There are likely
to be some slight notifications in the
present rules, bankers say.
I,n ol, I,
here to stay. So are practically all
of the charges Analysis of accounts
proved revelation in many banks
when it was discovered how much
service was rendered at a loss. In
times of extra prosperity these losses
were not so serious. although clearly
unfair to the banks. Every account
is now expected to pay its own way.
The result has been the closing of a
good many small accounts and the
bolstering of others to sums which
carry themselves and leave a profit
for the bank. Stopping of these
service losses marks a new era for
Washington financial institutions and
looms large in the 1884 records.
End of U. S. Check Tax.
The end Of 1884 also sees the end
OF the Governments 2-cent charge
on all bank checks. The so-called
nuisance tax expires January l. The
Federal tax has meant an increase in
Government revenues of nearly
$50,000,000 a year, has caused a not
able reduction in the total number
OF checks drawn, and placed more
work on the shoulders of bookkeepers.
Its passing will not be regretted by
bankers or the banking public.
Early in the year the banks here
reduced interest rates, making 21a
per cent the maximum to be paid on
savings accounts. This action was
CONTINUED on Page B-3, Column S.