Evening star., 1935-12-10
MAXIMUM RATES
. SET ON DEPOSITS
Member Banks Will Not Be
Allowed to Pay More Than
2Ta Per Cent. ....
BY EDWARD C. STONE.

on savings deposits after January !,
1886, according to regulations just an
nounced by the Reserve Board gov
ernors and sent out by the Federal
Reserve Bank of Richmond to all
banks in this territory.
Regarding the maximum rate of z12
per cent, the new regulations state
that no member bank may pay interest
accruing after January l, 1886, at a
rate in excess of 212 per cent per
annum, compounded quarterly, re-
gardless of the basis on which such
interest may be computed:
(a) On any savings deposit; (h) on
any time deposit having maturity
date six moonths or more after the
date of deposit or payable on written
notice of six months or more; Co on
any postal savings deposit which con-
stitutes a time deposit, except that a
member bank may pay interest on any
such deposits in accordance with the
terms of any certificate of deposit or
other contract which was lawfully en-
tered into in good faith before De-
cember ID, 1884 (or, if the bank be-
came a member of the Federal Re
serve System thereafter, before the
date upon which it became mem
ber), which was in force on such date
and which may not legally be terml-
mated or modified by such bank at its
option or without liability.
Rules on Rate of Per Cent.
On the maximum rate of 2 per cent
the regulations state that no member
bank shall pay interest after jan
uary /, 1886, at rate in excess OF z
per cent per annum compounded
quarterly, regardless of the basis upon
which such interest may be COM
puted "on any time deposit Except
postal savings deposits which constl-
tute time deposits) having maturity
date less than six months and not
less than 80 days after the date OF
deposit or payable upon written notice
of less than six months and not less
than 90 days, except that a member
bank may pay interest on such de-
positS in accordance with the terms
of any certificate of deposit or other
contract which was lawfully entered
into in good faith before December l.
1885 Cor. if the bank became MEM
Der of the Federal Reserve System
thereafter. before the date upon which
it became a member, which was in
force on such date and which may
not legally be terminated or modified
by such bank at its option or With
out liability
The new regulations also cover the
maximum rate of l per cent, saying
that no bank shall pay in excess OF
l per cent "on any time deposit Cex-
cept Postal Savings depoSitS) having
maturity date less than 80 days
after the date of deposit or payable
upon written notice of less than 80
days. except that a member bank may
pay interest on such deposits in ac-
cordance with the terms of any cer-
tificate of deposit or other contract
which was lawfully entered into in
good faith before December ], 1885
lor if the bank became a member
of the Federal Reserve System there
after, before the date upon which
1t became a member, which was in
force on such date and which naN
not legally be terminated or modified
by such bank at its option or without
liability"
Bankers in the financial district
said today that these interest rates
are practically the same as have
been prevailing in washington for
a long time. Bankers are very anxious
for the time to come when bank earn
ings will increase sufficiently so that
Interest rates can be raised to their
former figures.
Robey Is Committee Head.
Francis E. Robey of the Bank Of
Commerce & Savings is chairman of
the Entertainment Committee of
Washington Chapter, American In
stitute of Banking, which will hold
the annual Christmas party next
Saturday evening at the Beaver Dam
Country Club. He is being assisted
In arranging details for the dance
by John NJ. Christie, Riggs National;
Henry P Hoffman, Second National;
Donald C. Jones, Union Trust Co.;
Robert v. Mellefont, Riggs National;
Richard A. Norris, Lincoln National;
Thomas j. Norris, Bank of Com
merce & Savings; Frank M. Perley,
American Security & Trust Co.;
George M. Rowzee, Lincoln National;
Rose L. Royce, Washington Loan &
Trust Co., and Robert A. SiSson, Ham
ilton National.
Financial District Gossip.
Completion of liquidation of 13 re-
ceiverships of financial institutions
and the restoration of one receiver
ship to Solvency during November,
making a total of 173 receiverships
finally closed or restored to Solvency,
are reported by j. F. T. OConnor,
controller of the currency.
Secretary Morganthau announces
that the latest S50,000,000 issue of
Treasury bills was five times over
subscribed. Only applications for the
original amount were accepted. The
bills are dated December II, 1885.
Robert C. Jones of Robert c. Jones
& Co., investment bankers, who is a
major in the Officers Reserve Corps,
U. S. Army, was ordered to active
military duty last week, at the head
quarters of the Third Army Corps,
for a two-week training course, M j.
Jones will complete the training and
return to his Office December 16.
MergenthaIer Again Strong.
Mergenthaler Linotype stock was
again strong but quiet on the Wash
ington Stock Exchange today, when
10 shares changed hands at 38, same
as yesterdays close. The price in
Boston is a bit higher, sales being re-
ported there yesterday at SO and
3812, The final bid today on the
local exchange was SO, with SO asked.
The only other sales during today's
sessions were in Riggs National Bank
common stock, small lots changing
hands at 209, unchanged from the
last previous transfers.
Bid and asked prices on other issues
were practically the same as last week.
The bid of $500 share remains on