Evening star., 1934-07-05
BANKERS TO STUDY
HOUSING PROBLEM
Siddons Selects Committee
to Weigh Situation
Under New Act.
BY HAROLD ROGERS.

As a result Of the signing by the
President of the new housing bill. and
the fact that in that bill the oppor-
tunity is given to the banks of the
country to cooperate in making loans
for the purpose of renovizing and i'm
proving homes, President F. P. H.
Siddons of the District of Columbia
Bankers Association has appointed
the following committee to make a
study of the new law;
Francis G. Addison, jr. chairman,
president Security Savings e. Com
mercial Bank; George o. VaSS, vice
president Riggs National Bank; Karl
Corby, w. B. Hibbs & Co.; William l..
Beale, vice president, American Secur-
ity &; Trust Co.; A. H. Lawson. vice
president, Washington Loan & Trust
Co.: C. F. Jacobsen, cashier, National
Metropolitan Bank.
The purpose of this committee will
be to give to the local member banks
full information regarding the work
ings of this new law and cooperate
with the American Bankers Associa-
tion. which. it is understood, will give
information to all of the member
banks, explaining the manner in
which the banks can assist under the
terms of this new act.
Busy Computing Rates.
Reduction in interest rates on time
deposits effective July l, has thrown
a considerable burden on bank staffs
here.
Instead of the old rate which gen.
orally prevailed at per cent, there
is now graduated scale running up
to maximum of 212 per cent. This
has produced such complication OF
bookkeeping, that some institutions
are endeavoring to establish some
kind of a short cut which will reduce
the manual labor required in figuring
out the various rates of interest on
various sized accounts.
Interest is paid at different times
by different banks, some as OF July
l. and accountants are now busy
bringing the accounts up to date
under the old rate of per cent up
to July /,
Bank Figures Climb.
The figures in Americas bank book
are growing larger, according to the
Associated Press.
AS bank statements began appear
ing in response to the June 80 call
of the controller and the Federal Re-
serve Board, officials predicted today
that they would show an important
gain in deposits over the last tabu-
latior.
The total, though, will remain far
below the prosperity levels of 1929.
All bank eposits-including State
institutions not subject to the Fed
eral Reserve systems calls-stood at
S38, $40, 900 900 on December 80, COM
pared with a 1929 peak of $751;
289 ,000 900.
The difference of about $1,000
100000 represents bank credit which
has been liquidated. When business
activity creates more bank credit de-
posits will be correspondingly built up.
More actual money is in Americas S
pockets today than during the boom
years The amount in circulation on
June 27 was S5,30l 900 900, whereas
1t WIS below $4,000 100000 during
most of 1928 and 1929.
Circulation rose to its highest
point--more than $4,000, 900, 900
during the banking crisis of 1888,
when business was In q sharp decline
and people held on to cash.
Reserve Board officials said mem
Der banks balances with the Reserve
banks, which stood at S3,837 100000
on June 81, were sufficient to support
deposits of around 10000, 900 900
nearly half as much again as existed
in 1929
Dependent on Building.
Improvement in the cement indus
try, which has been badly hit by the
depression, remains entirely depend
ent upon revival in construction, ac
cordirg to the Index, monthly publi-
cation of the New York Trust Co., in
its July issue In 1888 the industry
operated at only 23.6 per cent of its
capacity, it is stated, and production
of 63,373,000 barrels represented a
smaller volume than any year since
1908. For the first quarter of the
current year shipments totaled H.
$4,000 barrels, or 3,05800O barrels
more than in the same period for
1888, but stocks of finished shipment
on hand were approximately the same
as in the previous year.
When the long delayed recovery in
building construction takes place. the
Index states, the demand for cement
will De instantly felt and over
period of years there can be little
doubt that the increased use of ce-
ment will lead to expansion in pro-
ductien. Nevertheless, it concludes,
present producing capacity, now over
rs per cent idle, appears adequate to
meet the needs of the country for
many years to come"
Rail Payments Grow.
Twenty-Five per cent of the fund
created by pooling the proceeds of the
emergency freight rates through
March 81, 1888, had been repaid to
the participating carriers up to July
l, the Railroad Credit Corporation
today reported to the Interstate
Commerce Commission.
In a letter addressed to participat-
ing carriers and accompanying the
report, E. G. ,Buckland, president
of the corporation, stated that the
repaylnents which total S16,234,868,
have been made to the participating
carriers in eight liquidating distribu-
tions. OF that amount, $7,014,534
was in cash and 1920, 1874 in credits
The ast repayment was made { on
June 80 and amounted to s2,196,635,
or per cent.
The pooled fund produced net
of s73, ,745, ,0s7, but, due to the distribu-
tions and other credits that have been
made, the balance due participating
carriers has been reduced to $751;
466,130
Controller of the Currency J. F. T.
O'Connor and his assistant, Marshall
R. Diggs, at the Federal Deposit In
suranCe Corporation, were guests of
Norman R. Hamilton, receiver for six
local banks. at his home at Ports
mouth, Va, over the Fourth of July.
Joseph Sanders, vice president of
the Bank of Commerce & Savings, is