Evening star., 1934-08-16
A. B. A. ASKS AID
ONHOUS|NGL LOANS
Special Plea of Fleming
Urges All Banks to
Support Program.
BY EDWARD C. STONE.


the American Bankers Association to
all sections of the country, Robert v
Fleming president of the Riggs Ma
tional Bank and second vice president
of the A. B. A., urges banks every
where to cooperate with the public
in making loans in connection with
the Governments program for the re-
pair and modernization of all types
of property.
The moderniZation plan will allow
private lending organizations to func-
ton normally in the extension of this
credit" Mr.. Fleming declared. "and in
addition it provides a safeguard, in
lieu of collateral or Endorsements,
through the creation of an insurance
corporation which will insure losses up
to 20 per cent of the aggregate total
volume Of the undermining receivableS
taken by each lending agency.
In addition to returning many of
the unemployed to useful and gainful
occupation, this program will produce
great betterments by enhancing the
value of properties and increasing
production in all lines and classes of
materials needed in this work. 1t is
one in which the banks will be glad
to cooperate if the public can be en-
couraged to seek such credit.
Il feel 1t is highly desirable, in so far
as it is consistent with sound banking,
that the banks of this country CO.
operate with the public in making
these loans when applied for and
which qualify.
Adequate Safety Provided.
"The modernization plan is consid-
cred workable and fair to both the
banks and the public and adequate
safety for the banks participating in
it is provided for" Mr.. Fleming said
Mr. Fleming was designated by
President F. M. Law of the associa-
tion to participate in conferences with
the National Emergency Council. He
gave particular assistance in working
out satisfactory features relating to
the insurance of loans extended for
repair and moderniZation of existing
property.
The A. B. A. also publishes a list of
the liaison officers appointed in each
of the 48 States and the District of
Columbia to assist in promoting the
campaign.
More applications for these loans
were received by the Washington
banks today. which was rated as the
official opening" of the renoviZing
drive. The banks making the loans
include the American Security &
Trust Co., Anacostia Bank, Bank of
Commerce g. Savings, City Bank, Co
lumbia National, Hamilton National,
Liberty National, Lincoln National,
McLachlen Banking Corp, Morris
Plan, Munsey Trust, National Bank
of Washington, National Capital, Ma
tional Metropolitan, National Savings
g. Trust, Riggs National, Second Ma
tional, Security Savings & CONNER
cial, Union Trust and Washington
Loan & Trust.
Blacks Resignation Regretted.
Expressions of regret over the
resignation of Gov. Eugene r. Black
as head of the Federal Reserve Board
were heard in the financial district
today. Gov. Black has many friends
among local bankers who like him
very much personally and feel that
he has unusual ability. His reSigna-
tion was no surprise, as he has always
told his friends here that he was
anxious to get back to Atlanta as
governor of the Atlanta Federal Re
serve Bank.
His appointment by President Roose-
welt to be liaison officer between the
banks of the country and the present
administration was pleasing to bankers
here. He is unusually well informed
on banking conditions all over the
country and is familiar with the de-
sireS of leading bankers on financial
steps which they consider would hasten
recovery.
In his position as head of the Fed
eral Reserve Board he has had COM
plete banking reports from every sec
tion of the United States. AS a LA
iSon officer he can furnish no addi-
tional facts not already available. But
from his contacts with the best
minds" in the banking business he
may be able to make some very con-
structive suggestions. In any event,
his experience will be of great value
and financiers will have a new avenue
through which to express their views.
Nearby Outlook Bright.
The United Service, Boston, has
this to say of conditions in MARYLAND,
Virginia, North and South Carolina
and Delaware: The condition of
crops IN these States is above the
average for the country. Retail and
wholesale sales have held up we'll.
Hardware and textile lines have been
the most active. If crops do not dete-
riorate suddenly this section should
prove to be particularly good market
in the Fall months"
The review states that incomes are
running substantially ahead of last
year in West Virginia Employment
is higher in coal and lumber indus
tries. Farm income will be more than
10 per cent greater than last season.
Building activity, particularly public
works, is stimulating trade in West
Virginia, Kentucky and Tennessee.
The Boston review says that these
States will actually be aided by the
severe drought in other sections a:
farmers will get higher prices for the
products Eight States are listed as
having the best agricultural prospects
Maryland being included.
TOdayS Trading on Exchange.
Trading on the Washington StocE
Exchange today was confined to JUS
two issues-one Of the dullest days il
weeks.
Capital Traction was strong. fgur.
ing in two l0-share sales at 1872. Il
is believed in the financial distric
that July will reveal another Splendic
earnings record. This rumor is keep
ing the price up.
Washington Gas IS, series B, wert
strong, baby bond selling at 103
Bid and asked prices on other issue
were unchanged
Members of the exchange expressed
qualification over the action yesterda,
of the American Telephone g. Tele
graph Co. in voting the regular divi
dent of S225 per share for the las