Evening star., 1934-06-03
Service Charges, Taxation
and Other Problems
Arouse Interest.
LOWER INTEREST RATE
ON SAVINGS EXPECTED
Opinion Prevails at White Sui
phur That Level Should Be
More Flexible.
BY EDWARD C. STONE.


Echoes of the brilliantly successful
convention OF the District Bankers
Association, at White Sulphur Springs,
still were reverberating through the
financial district yesterday. Un-
doubtedly the program included dis
cussions of subjects of more vital
Importance to Washington banks
than has been the case at any of
the other Is similar meetings There
are two reasons for this; the fact
that the banks are in reconstruc-
ton period. which has brought up
countless problems that would never
arise in normal times, and the bene-
fit of past experience in making up
the program.
An extra night session was added
to the usual three morning pro-
grams. So interesting proved the
discussions on service charges, tax
matters and other questions that the
financiers remained in session until
IL o'clock, in spite of the evening S
varied social events. Lowell H.
Parker, a Government advisory ex-
pert on internal revenue taxes and a
director in the Munsey Trust Co.,
was one of the chief speakers. The
barrage Of questions which were asked
at the conclusion of his address re-
suited in one of the best forum dis
cuSsions heard during the conclave.
Francis G. Addison, jr., spoke on
Analysis Of Accounts" His remarks
opened up the whole question Of serv-
Ice charges. The banks in the Capt.
tai are constantly improving their
methods of learning whether a de-
positor's account is being carried at
loss. Most Of the banks already
have service charges. More of these
charges are likely to be seen in the
future. Bankers, however, realize the
service charge must be applied in a
diplomatic way and is a delicate mat
ter, although intended to affect only
those accounts which are being car
ried at a loss.
Lower Interest Held Likely.
Many banks all over the country
have cut their interest rates on saw
ings deposits. That action may be
taken here. It depends on an early
improvement in the demand for
loans. At present the banks have a
great deal Of money in Government
bonds. The yield is not sufficient to
pay present interest on thrift ac-
counts Indefinitely. The opinion pre-
vailed at White Sulphur that inter-
est rates should be more flexible, up
in good times and lower in hard
times.
Capital banks are ready and anx-
1ous to make more loans to custom
ers, loans to business which will help
increase employment, as well as other
sound credit. In cases where appli-
cations were made for loans that are
not bankable, the bankers were urged
to explain the reasons for denying
such loans so clearly that no GUS
toner would feel hurt over being
turned down.
Reports, so far as they related to
business conditions in Washington
indicated steady improvement. The
great increase in population since the
new deal started was assigned as one
OF the big reasons for economic prog
ress.
The great increase in the feeling
OF confidence among bank depositors
Is the chief reason among banking
leaders in the District for enthu-
siasm over the Federal Insurance De-
posit Corporations temporary plan
They want insurance up to S2,50C
continued for a year, as favored by
President Roosevelt, and are strongly
opposed to the permanent plan for
protecting larger deposits.
Mckee Given Highest Honor.
In the election of H. H. Mckee
president of the National Capital
Bank, as the Washington member OF
the Executive Council of the Ameri-
can Bankers Association, he was &C
corded the highest honor in the gift
of the Washington association. Mr.
Mckee also was elected a member
of the A. B. A. Nominating Commit
tee, with Wilmer j. Waller as al
ternate.
George o. vass, retiring president
was elected A. B. A. vice president
for the District Of Columbia, succeed
ing c. H. Pope. District vice presi-
dents to serve the national aSsocia-
ton for q year included Robert H
Lacey, National Bank Division; Fred
Mckee, Savings Bank Division; A. M
McLachlen, State Bank Division, and
Ord Preston, Trust Company Divi-
sion.
Four new members of the local as
sociation's Council of Administration
were elected, A. M. McLachlen to rep
resent State banks; Clarence F. Bur-
ton, savings banks; Wilmer j. Waller
national banks, and Frank Stetson
trust companies. The new officers
and retiring president are the other
council members.
Victor B. Deyber made the nomina-
tions for the committee, which in
cluded Robert v. Fleming, G. H. Pope,
Ord Preston and j. Frank White,
Mr.. Fleming reported for the Reso-
lutions Committee, Of which he was
chairman. One resolution praised the
work Of Mr.. Mckee as chairman Of
the Washington Clearing House Asso-
citation. A surprise resolution, pre-
sented from the floor, lauded the
work and interest Of Mr.. Fleming ir
the local association, in spite of the
fact that he is now an officer in the
American Bankers Association. which
demands a vast amount of his time
and energy.
One Of Youngest Presidents.
Mr.. Siddons, the newly elected
president, will be one of the young.
est chief executives the association
has had. Born November 8, 1895, he
is the son of Harriet C. v. and the
late Justice Frederick l.. Siddons. He
is graduate of Western High School
took his A. B. degree at the Uni.
versity of Wisconsin in 1920, anc
graduated from National University
Continued on Third Page.)