Evening star., 1935-09-05
BANKS SITUATION
HELD IMPROVING
Higher Bond Prices Lift
Profits-Better Loan
Demand Forecast.
BY EDWARD C. STONE.

bankers magazine regrets that the
banks still have a plethora of funds
for which no use can be found but at
the same time declares the banking
situation has its favorable aspects.
An increase in the demand for loans
is predicted, while higher prices for
bonds and other securities are boost
ing profits. The summary says:
"In the first place the public no
longer has any occasion to worry
about the banks. Whether by their
own efforts. Government aid, or de-
posit insurance, they are now in
sound position. the public recognizes
this fact. and relations between banks
and public are naturally improving.
Earnings are low and there is no
doubt that something must be done to
increase them, but it is well to note
that in 1884 national banks earned
S3 per cent on their capital funds
on current operations-no very i'm
pressive record but, nevertheless, a
substantial return. In the same period
State member banks made similar
record of little less than 7 per cent.
1.-The loan situation continues un-
satisfactory and yet in this, too, the
situation is rather better than at first
appears. In 1884 there was a de-
crease in outstanding loans in men,
Der banks in the amount of S805, $780,
900. but in that period these banks
wrote off losses in loans of S450,717,-
900. The decrease of approximately
$3.50 100000 in live loans is serious
enough, but not half so serious as the
gross total would indicate Consid-
ering the fact that the large increase
IN bank deposits in the past 18
months represents in large part ac-
cumulated funds of persons or con-
Germs, which under normal conditions
would be borrowers, the loan situation
is less abnormal than the deposit
situation largely responsible for it.
so long as business continues its
present improvement, banks have
every reason to anticipate an ultimate
demand for more commercial and in
dustrial loans which will afford them
the earnings they require. In the
meanwhile the improved prices of
bonds and other securities are giving
many of them fair profits as well as
improving their general position"
More Bankers End Vacations.
Hilleary G. Hoskinson, one of the
vice presidents of the Riggs National
Bank and second vice president of
the District of Columbia Bankers As
sociation. has returned to the bank
after months vacation. Other Riggs
officers also back at their desks in
clude Avon NJ Nevius, vice president;
J. r. MCMILLAN, Earle M. Amick and
3. Gwynn Dent. assistant vice presi-
dents.
C. J. Gockeler, an official in the
Hamilton National Bank, and former
president of the Washington Stock
Exchange, has returned from a
months vacation at Margate City.
N. j. He reports that this resort had
one of the best seasons in several
years, adding that the same may be
said OF Atlantic City. Improvement
in the real estate situation at both
these resorts Is an outstanding phase
CI UIlelT IcCONcly, Ilc Sdlu
frederick P H. Siddons. secretary
OF the American Security g. Trust
Co., and president Of the District
Bankers Association last year. is back
at his desk after months vacation.
Raymond G. Marx. controller of
the the Riggs National Bank, has re-
turned to Washington from months
vacation spent at the seashore and in
the Catskill Mountains.
Railroad Earnings Compared.
Glass / railroads in the Southern
district for the first seven months
of 1885 had a net railway operating
income of s26, ,428,1e1. which was at
the annual rate Of return of LAT
per cent on their property invest
ment. For the same period in 1884,
their net railway operating income
amounted to $33,612,145, which was
at the annual rate Of return of 1876
per cent on their property invest
ment.
Gross operating revenues of the
class l railroads in the Southern
district for the first seven months
increase of per cent compared with
the same period in 1884, while oper-
ating expenses totaled S195, ,020, ,407,
an increase Of per cent.
Glass l railroads in the Southern
district for the month of July mad
a net railway operating income of
$2,003,1 ISL, compared with $1,827 1858
in July, 1884.
Stocks Back on Exchange.
1t was announced on the Wash
ington Stock Exchange today that
the stocks Of the American Fire
Insurance Co., the Corcoran Fire In
surance Co. and the National Union
Fire Insurance Co. have been re-
turned to the trading list on the ex-
change.
Owing to slight technical mat
ters in connection with the registra-
ton applications to the Securities
and Exchange Commission, there was
some delay in the granting of per-
manent registration. They were kept
of the exchange while these minor
changes were being made The Fire
back on the list about a month ago,
so these four original issues are all
on the list again.
Capital Transit opened business on
the exchange today, two small lots
selling at II, same as yesterday. Rail-
way & Electric preferred moved at
1861, Mergenthaler Linotype appeared
at 2515 and Riggs National Bank
preferred sold at lot, on a five-share
transfer.
Heard in Financial District.
The Treasury offering of $500, 0,O0e,-
600 31a year III per cent notes was
oversubscribed two and a half times,
or $50 per cent, Secretary Morganthau
announces. Subscriptions totaled
about 25o.o00,0o0. with returns not
yet complete, he said. The report
is unusually interesting in view of
the fact that the recent offering Of
mortgage bonds was not fully sub