Evening star., 1935-03-11
BACK LOANS CUT
STEADILY IN D. c.
Institutions Well Pleased by
Substantial Decline in
Old Debts.
BY EDWARD C. STONE.

pSI VI lOdllS CO1lIIdClcu OuIlllE lllt
days Of the boom in 1929, according
to reports from various institutions in
the financial district. Wide satisfac-
tion Is being expressed over the prog
reSs recently made.
Payment of these back loans is
considered one of the most vital steps
toward return of prosperity, not only
in the Capital, but all over the United
States. When all these loans are off
the slate there is sure to be a great
increase in purchasing power.
In discussing this same point the
current number of the magazine
Sphere says that the big question all
along has been how long it would
take for citizens to liquidate this type
of Indebtedness and recover their
normal purchasing power. The maga-
zine adds:
"A more or less satisfying inquiry
shows that approximately 10000 people
a day are getting entirely out of debt.
This is based on returns made by
banks in small towns, which show
that an average of one person each
banking day is completely liquidating
his position. There are some $4,000
banks in the country, many of them
large ones.
"Of course, these people get out of
debt because they have been paying
gradually, for years past. This con-
sistent liquidation has not yet reached
its high, but is cumulative and the
chances are that, over the next six
months or a year. the number getting
completely out of debt daily will in
crease rather than diminish. 1t is not
extravagant to say that more than
100000 people during 1885 will pass
out of the debtor class (old debts.
There are two conclusions to be
drawn from this. First, that these
people will have greater purchasing
power, part at least of which they
will use, and secondly, that they will
be, for the most part, conservative
minded, for he who has something to
conserve is usually conservative.
Again, although it may be of in
ferior importance, these people who
have paid their debts have a credit
rating and a real credit capacity.
Many of them, in business, will use
that credit when once they are con-
WINGED that things look right.
Yost's Death Causes Regret.
Announcement of the death of John
c. Yost. president of the East Wash
ington Savings Bank, caused wide re-
gret in the financial district today.
Mr.. Yost had been president of the
bank almost 20 years.
Mr.. Yost, who was about "a years
old, was not active in the affairs OF
the District Bankers Association, yet
was always greatly interested in what
the association was doing. President
F. P. H. Siddons named the following
committee today to represent the Or
ganization at the funeral:
H. H. Mckee, president OF the Ma
tional Capital Bank; j. Frank Camp
bell, president of the Anacostia Bank;
Victor B. Deyber, president OF the
Second National Bank, and S. Wilson
Earnshaw, cashier of the East Wash
ington Savings Bank.
Mr.. SiddonS paid Mr.. YoSt a high
tribute, as did H. H. Mckee, who had
been particularly closely associated
with him over a long period of years.
While head of the savings bank he
was also a director in the National
Capital Bank. His death caused gen.
eral surprise, as few people in the
banking district knew he was seri-
ously ill.,
Capital Bankers Win Debate.
WASHINGTON Chapter. American In
stitute of Banking, won the debate
Saturday evening with the Richmond
Chapter. which was held in the
American Security & Trust Building
here before very large and most
enthusiastic audience. The winners
we're j. Earle McGeary of w. B. Hibbs
g. Co. and G. E. Foreman of the Riggs
National Bank, while David A. Wal
lace and James A. Rawls composed
the losing team. The sale and export
of arms and ammunition was the
subject.
James c. Dulin jr., treasurer of the
American Security & Trust Co., sub
stituted for Maurice D. Rosenberg as
one of the judges. The others were
William C. Johnstone, dean of the
Junior College, George Washington
University, and F. w. King, general
manager of the Virginia Public Serv-
ice Corp.
A. B. A. Attacks Title II.
The American Bankers Association
has come out against certain provi-
sions included in title II of the pro-
posed banking act of 1885. Changes
are to be demanded before Congress
acts on the bill and further study of
the measure is also urged
Robert v. Fleming, president of the
Riggs National Bank and first vice
president of the A. B. A., is back in
the city after attending an executive
meeting in New Orleans. A special
committee is to present the views of
the association before leaders in Con-
gress.
The committee includes Rudolf S..
Hecht, president of the A. B. A.; Mr..
Fleming, Tom K. Smith, second vice
president; Winthrop w. Aldrich of
the Chase National Bank, and Ron
aid Ransom, widely known Atlanta
banker.
Lively Session of Exchange.
The Washington Stock Exchange
opened the week at a lively pace. Cap
ital Traction SIS selling at 81 for the
first time. Anacostia & Potomac R. R.
IS also sold at a new high, 104A
Riggs National Bank common moved
at 212. Mergenthaler Linotype at 80
and Capital Transit stock 1T 1884.
Karl w. Corby, vice president OF
the exchange, was present at todays
session, having returned from a
months vacation In Florida. Harry
Evers, president of the Buffalo Ex-
change, was visitor and was granted
the privilege of the floor.
State and municipal financing dur.
ing February totaled $62, ,674, in
cluding s10,723,987 of loans made BY
the P. w. A., according to the Daily
Bond Buyer. In February, 1884, the
total was $75,419,641, including $13,.
966,667 of r. F. c. and ?. W. A
l0anS