Evening star., 1935-12-31

rency's last call
revealed bank deposits at an 'all-time
peak, even ahead of the aggregate
total in the boom days of 1929. while
retail trade also swept aside all 1884
records. Insurance business climbed
to new sales heights and other i'm
portant business barometers outdis-
tanced marks set in 1884 and in other
years.
Such sure-fire business guides as
postal receipts, sales of electricity, new
telephone installations, of originating
telephone calls, and earnings by other
utility concerns paint an accurate
picture of the same improved condi-
tionS and back up the assertion that
the business setback that started in
1929 has become history. Of course
there is still slump in some lines,
as some failures are frequently re-
corded even in the best of times.
Then, too, any announcement that
the depression in Washington is ended
must be taken as comparative. Busi-
ness men visiting here from other
cities insist that there has been no
depression in the Capital worthy of
the name. They cite conditions in
New York, Detroit. Chicago. Cleve-
land or st. Louis, and ask what this
city has really known about an over
whelming recession in business or in
dustry. No municipal bonds had to
be refunded and a thousand other
handicaps noted in leading indus
trial cities were ever experienced here.
Bank Interest Lowered Here.
One Of the most important moves
taken in the banking field in Wash
ington during 1885 was the lowering
of interest on savings accounts. This
was a momentous step. When the
earning power of the banks became
curtailed because of cheap money and
a slow demand for commercial loans,
interest on savings deposits soon be-
came out of proportion to income. Had
the situation not been remedied, some
banks would have had to pay out more
money in interest than they could
earn. Lowering of the savings rates
restored the proper balance.
While bank officials tesitated to cut
the returns on savings accounts. there
was no other action open. With the
return of higher money thereby re-
storing the earning power of banks
everywhere, the rate on savings ac-
counts will naturally be advanced as
rapidly as possible To 1885, however,
the lowering of these rates has been
As vital to banking prosperity as was
the establishing of the measured serv-
Ice charges in 1884. Adoption of serv-
ice charges halted losses on small or
very active accounts. Lower interest
rates are having similar results.
washington banks have paid more
dividends this year than last, some
even declaring extras at the end of
the year, definite indication of i'm
proved conditions Confidence has
been completely restored among bank
depositors, partly because of the safety
afforded by the Federal Deposit Insur-
ance Corp. There is, of course, ample
opportunity. for further improvement.
as the banks here, as elsewhere, have
q great deal of money which they
would like to put out at higher in
terest in commercial loans.
Loans made il. cooperation with
the Federal Housing Administration
under the various titles of the housing
act have given the banks a new source
OF income during 1885, these loans
summing into high figures and con-
1rlnuting substantially to the building
ana renovizing progress reported in
real estate circles. In this phase of
Washington's march forward the
-city's building and loan associations
have also played a most vital and
notable part. Both the banks and
the loan organizations have made
money far easier to obtain than II
was at the beginning of 1885. And
they are looking forward to rendering
the same valued service to the COM
munity in 1896.
Deposits Attain New Peak,
The year 1885 has seen bank de-
posits in the Capital reach a new all
time top. The gains were astonish-
ing. The previous high mark was in
March, 1881. On the controllers call
dated November /, aggregate deposits
in the % banks in the Capital had
mounted to 0,200, ,627.O1, an in
crease of more than $23.O000O since
the call at the end of the Govern
ment's fiscal year on June 20.
An analysis of bank deposits |
brought out the fact that every bank
In the city had increased its deposits |
between the two calls. 1t was the first
time in the history of Washington
that a 100 per cent record of this
kind had been recorded. National
banks, savings banks and trust COM
panies all Joined in the advance.
The surprising deposit upturn Is
u 4 -