Evening star., 1936-07-27
BANK PRESIDENTS
SEE RISING PROFITS
Survey Also Shows Officials
Believe Interest Rates
Have Hit Bottom.
BY EDWARD C. STONE.


and the belief expressed that interest
rates are at their low point, in a
summary of opinions of group OF
bank presidents just issued by Clinton
Gilbert g. Co., New York. members
of the New York Stock Exchange.
These views will be of wide interest
to Washington bankers who only a
few days ago reported that bank
earnings in the Capital had been as
good and in many cases better in the
first half of 1886 than in the like
period in 1885
A majority of the bank officials be-
lieve that bank earnings prospects
are cause for optimism and that
the earning capacity of banks will
improve from now on. A summary
of the reports received showed that
6l per cent of the financiers were
optimistic about the future. while 80
per cent expressed pessimism.
On the definite subject of earnings,
54.8 per cent said they considered
the outlook for an increase in future
profits as good; 1914 thought the out
look fair, while 25.8 per cent called
the outlook poor. Profits from bond
portfolios were mentioned by the
bank officials as advantageous during
the past year or two, although some
said such earnings should be set up
as reserves to safeguard premiums in
case of any increase in interest rates
in the future.
OF the bank presidents, sc per cent
indicated their belief that interest
rates had hit bottom. Two predicted
an advance but at no stated time. A
good many of the bankers reported
substantial recoveries on items which
had already been written off.
Service charges, lower interest rates
paid on deposits, economies in opera
ton, better management and Federal
deposit insurance were mentioned as
important factors in the better times
in the banks. Not quite half of the
bankers reported growing demand
for loans. the survey concluded.
More Financiers on Vacation.
William D. Hoover, chairman of the
board of the National Savings &
Trust Co., is on his annual vacation
and is basking in the cool breezes OF
New Hampshire.
C. C. Morgan, one of the managers
of the Washington office of G. Mp.
Murphy g. Co., will be back at his
desk Thursday after a short trip to
Europe. He is returning on the rec
ord-breaking Europa.
Frederick P. H. Siddons, secretary
of the American Security & Trust Co.,
will return the latter part of the week
from Eaglesmere, Pa, where he has
been passing a months vacation. He
is said to have made some fine golf
scores.
Daniel ]. Callahan, jr., one of the
assistant cashiers of the Riggs Ma
tional Bank, has returned from three
weeks vacation at Eaglesmere, Pa,
j. Roberts, another assistant cash.
ier at Riggs is on his vacation now.
Harry E Moore, member of the
staff of Anchincloss, Parker & Red
path, has returned to his desk from
vacation trip to Provincetown, Mass,
and other PLACES on Cape Cod.
William S. Quinter. president of the
District Building and Loan Associa-
ton. No. / Thomas circle, who has
been in Emergency Hospital under
going special treatment, is able and
glad to see friends. He is one of the
best known building and loan men in
the city, having been most active in
the District of Columbia Building and
Loan League.
Steady Bond Prices Forecast.
The general bond market outlook
remains favorable, says the United
Business Service in its current re-
port Demand for bonds is expected
to exceed the supply for some time to
come, for institutional and other large
investors continue to have a substan-
tial surplus of uninvested cash.
The Service states that although
interest rates have stopped declining,
an advance is not imminent. AS long
as the Governments borrowing pro-
gram is incomplete money rates will
probably continue low. The Federal
Reserve Board, in ordering higher
bank reserve requirements, stressed
the point that it's action docs not
constitute a reversal of the easy
money policy which has been pursued
by the system since the beginning
of the depression"
The conclusion is reached that
money rates will remain on their
present low plateau for some time
to come and that bond prices will
continue to be supported at or very
close to current levels despite the
Federal Reserve action, higher bank
loans and the larger amount of new
capital financing.
Financial District Gossip.
Brokers in the financial district are
much pleased with the increase in
volume of trading on the New York
Stock Exchange, also with the manner
in which prices have been held up.
The many daily new high marks have
aroused lot of comment in the board
rooms.
The National Dairy Products Corp,
Of which Chestnut Farms Dairy is a
unit, reports earnings of 80 cents a
share on the common stock in the
first six months of this year, against
49 cents in the first half of 1885.
Sales in the six months were up IL
per cent.
The Interstate Commerce Commits
sion has authorized the Virginia Rail-
way to absorb the properties of the
Virginian g. Western Railway and the
Virginian Terminal Railway Co., two
subsidiary properties. No capitaliza-
ton is involved, it being merely to
simplify accounting matters. The
merger will result in estimated annual
savings of s17,3l5, principally taxes.
Farm income for the first half of
1886 was the largest for any first half
year since 1880. the Department of
Agriculture announces. The depart
ment predicted, in addition, that dur
III -G H. 90