Evening star., 1934-03-25
C.W.A,FUNDSP[AY c. A,
VITAL ROLE HERE
AS DEPOSITS SOAR
Capital Bankers Stress Ex.
penditures in Rise of
20 Millions.
GUARANTY PLAN HELPS
TO BOOST TOTAL ALSO
New Era of Confidence Is Hailed.
Many Customers Decide to
Cult Hoarding.
BY EDWARD c. STONE.


penditures in Washington during the
last three months were ascribed by
bankers as one of the most vital fac
tors in the surprising upturn of more
than $23,000,000 in bank deposits
since the controllers call of Decem-
Der 80, 1888.
The jump from 1922 100000 in ag-
gregate deposits in this city on the
call at the end of last year, to we'll
over 100000 on the call dated
March 5, issued by the controller
Friday, was the main topic of CONVEX
sation in the financial district yes
terday, putting the stock exchange
control bill and threatened automobile
strikes in the background.
Just how much money has been
spent here during the Winter by the
C. w. A and other Government
agencies, is problematical. But the
totals are very large and most OF this
money is put right into circulation. A
great proportion is used for living ex-
penses and the payment of back bills.
These funds have given trade Splen-
did boost and much of the msney has
to help swell deposits.
Insurance Boosts Deposits.
Bankers said yesterday that the in
surfing of all bank deposits up to
$4,000 no doubt had been very i'm
portant factor in pushing up deposit
totals since January /, when the new
Federal deposit guarantee law went
into effect. The results were felt at
once.
While bankers bitterly opposed the
r1,aranty of deposits, they readily ad-
nit that it has caused a complete
turnabout in the attitude OF hosts Oh
people toward banks and brougnt a
new era in confidence that nothing
else could have produced.
Along with this protection OF more
+ben on per cent of the depositors IN
financial institutions all over tle
country, has come the END OF noalu-
ing. Some weeks ago the ioca! pailhs
we're almost flooded with goid anu
-oold certificates. Many of these Gus
TONERS we're asked to take their money
direct to the Treasury. Thls was
done. boarded gold was turned lnto
other money which quickly touno us
vav to the tellers' windows. lou ol
II figured in this weeks call totals.
Trade Lifts Balances.
Better business is, OF course, eA-
trenely important in accounting 10.
larger bank balances. TRADE IN Clle
Canital has been making steady prog
ress for many months.
During the past three months there
h,- heen a notable increase in small
savings accounts. When the bottom
of the depression was dellnlVeiy
passed, such a thrift move s'sroeu'
for rainy day proteculoh;
came the insurance plan and the saw
iriks wheels started turning al HUI
higher speed. Scores OF otner reasolis
might be cited why so much casn .as
heen poured into the banks since 'iie
december call. However, the nguies
All classes of banks, national, saw
,nos and trust companies, shareo IN
the innroyement. One bank gained
co 600 900: two others $2,0OO,O0o each,
and six more 81 100000 each, "illle
several others registered equally I'M
nressive gains in accordance Win
their size. To local financlers an
these figures prove that washington
ts making sound and rapid progress Al
getting away from the depressioh'
Retail Sales Compared.
Percentage sales comparisons IN S0
department stores in the Fil.li aonted
eral Reserve District were presen.ea
nv the Reserve Bank OF NNiiiiioiio ~.
Yesterday, showing that SAFES IL, ~
wsshington's eight leading stores IN
EshrIary were IL per cent aneao ol
FEBRUARY. 1898, and for the nlst wv
months of the present year were o."
ner cent above the like 1888 perlou.
richmond sales in FEBRUARY "eie
,n ( ner cent. Baltimore's up Is pei
cent and average for the hftn as
tr;ot showed an II per cent advance.
crown of other cities lifted business
- ner cent during the month. inc
~ =, the whole district in the two
s,,orth neriod was 81 per cent. hch-
mond topped all other CLUES WIN "
jump Of 22s per cent: u.sb,noton
Stocks on hand In WasIis WI ~
stores we're 1877 per cent hisnei o.
the end Of February than at the sanle e
time in the previous year. Ihey "ele
cleo Q per cent higher than at the
end of January this year. same as .ne
,,ercentape for the whole flfth as
trict Stocks in Washington stores
mere turned "a times during tne
,,,onth. against .22e times for the area
as a whole. - IN
Washington were 262 per cent OF re-
ceivables, while average collectlons
for the fifth district were 268 per
cent.
Traction Bonds in Demand.
The following transactions took
place on the Washington Stock Ex-
change yesterday: ooo
washington Rwy. L Elec. $1,000
at 90.
CAPITAL Traction Colo at 261a.
Mereenthaler Linotype-10 at 26, 10
at 26, S at 26.
csnital traction 5s-$1,oo0 at 7S,
$1,000 at 7S, $1,000 at rs, 1000 at
7s, $1,000 at rs, $1,000 at 7s, $500
Washington Gas IS 196o-s5oo at
1868.
At the end of the week the asked
price on Washington Gas IS, 1858, ad-
vanced to 931a, up IL points, with
91Z bid. Washington Railway 4
Electric Is ended the week with 90h
bid and SO asked.
Other local bonds maintained their
strength throughout the week. Capt.
tai Traction IS, the feature OF yester.
days trading, closed with n bid ano
so asked.