Evening star., 1935-03-14
PROGRESS MADE
ONFROzEN ASSETS
Some Institutions Expected
to Pay Nearly 100 Per
Cent of Deposits.
BY EDWARD C. STONE.

Spring of 1888, around the time of the
Nation wide bank moratorium, ap-
pear to be making very substantial
progress in thawing out frozen assets
and speeding up payments on loans.
While it may be some time before
further so-called dividends are dis
tributed yet it is plain that Govern
ment officials believe some of these
institutions will eventually be able to
return not far from 100 per cent of
the funds due waiting patrons.
The first definite line on what the
losses may be in 10 closed banks IN
Washington has come out in connec-
ton with allowable deductions in IN
come tax returns The suggested de-
ductions are unofficial but at the same
time are authentic and will be al
lowed by the Internal Revenue Pu-
reau. OF course, over period OF tlne
the closed banks may be able to pay
cut more than the figures indicate.
On the other hand, the amounts stat
cd may be very close to the flnal
wind-up.
The hst indicates that the old Sew
enth Street Savings Bank is doing
especially well in closing out its al
1airs, as only per cent can be de-
Quoted for income tax purposes. Inc
bank has already paid 80 per cent 10
depositors. The Departmental Bank
has also paid 80 per cent, leaving
POSSIBLE deduction OF only 10 per cent
of the original deposits.
Two Small Banks Top List.
No deduction is allowed in case of
the old Chevy Chase Saving Bank
which has already paid IS per cent
and is now unit of Riggs National.
Evidently United States Officials ex-
pect the Chevy Chase institution to
pay practically 100 per cent. 1t is put
in the same class with the Woodbridge
Langdon Bank at the top of the list
of best prospects. In the case OF the
Brentwood Bank, which has paid %
per cent in dividends, 40 per cent may
be deducted from tax returns.
The Commercial National deduction
Is placed at 80 per cent. The bank
has already returned so per cent to
depositors 1t is evident that the Dis
trict National will finally pay about
80 per cent as the deduction suggested
is placed at 20 per cent. The bank
has already paid so per cent to former
depositorS. For the Federal-Amerlcan
the deductable sum stands at 80 per
cent, the bank having paid 80 per
cent when it was reorganized as part
of the Hamilton National.
In case of the International Ex-
change Bank, losses of 81 per cent
NAV be claimed, 81 per cent having
been returned to depoSitors so far.
The outlook fer the North Capitol
Savings Bank appears none too bright,
65 per cent being suggested as de-
duction, with Is per cent having been
paid to date. The Park Savings out
look is also gloomy. Depositors may
take off 70 per cent while they have
received only Is per cent to cate.
Washington Savings Does Well.
Potomac Savings Banks deduction
is 25 per cent, so per cent already
having been paid The United States
Savings deduction is placed at Is per
cent This bank has paid off s.
The woodridge-Langdon Bank appears
to have extra good liquidating pros
poets, as no tax deductions are per-
mitted and the bank has already paid
off so per cent to depositors.
Another one of the smaller banks
which deserves congratulations is the
Washington Savings Bank, which did
business at Tenth street and Grant
place for many years. This bank mas
already paid back 70 per cent to
patrons and only a 10 per cent loss
can be claimed in tax statements.
No amounts are stated for the
former Franklin National Bank and
the Mount Vernon Savings Bank, two
institutions which are now active units
In the City Bank. 1t is possible that
a definite figure for these banks will
be fixed for income tax statements
next year. In the meantime deposltors
will have to make whatever deduction
claims they consider proper.
There was another grand rush OF
bank patrons today to consult the In
ternal Revenue experts in the lobbies.
Deductions of bank losses we're being
claimed according to the above
schedule. which was announced early
this week The percentages have been
q tremendous help in the compiling of
returns.
As Eccles Sees Banking Bill.
In urging favorable congressional
action on the banking act OF 1885,
Gov. Mariner S. Eccles of the Federal
Reserve Board says in Sphere:
Broadly speaking, there are four
main objects which we seek to ac-
complish in the banking bill of 1885.
IL ricl1 tO q q
the banking system a more efficient
instrument for the promotion OF
stable business conditions in the fu-
ture; secondly, various proposals in
the bill are designed to bring our
banking system into closer conformity
with modern conditions and, more
Immediately, to aid in business re-
covery; thirdly, we seek to make GER
tain rather fundamental changes in
the law relating to deposit insurance
in order to make the system sounder
and more equitable: and, finally, we
seek to correct various Inequalities.
antiquities, and abuses that have
developed in the banking system in
the course of time.
II am here merely stating the
broad principles involved. I should
not like to be understood as arguing
for highly centralized control of al
banking activities. Local versus ma
tional control is not subject or
which one should take sides irrespec.
tive of the question at hand. The ad'
ministration of certain interests car
obviously be handled more efficientl!
locally. Similarly, there are othel
things which can be handled more
efficiently on a national scale. W.
should consider each case on it
merits and provide for local contro
sr national control, whichever is il
the public interest.
THE fundamental premise under
lying the bill is that business stabilit.
Is desirable objective"
Cleaned in Financial District.
All sales on the Washington Stocl