Evening star., 1936-03-28
DRASTIC CHANGES
SEEN IN BANKING
Financiers Urged to Go Out
After Loans to Meet
Turn in Road.
By EDWARD C. STONE.

IlOG OIlly Idlh dSdulSG SONcILli
loans but get them back into private
institutions. These suggestions are
among the echoes coming from Mem
phis, Tenn where the A. B. A. South
ern Banking Conference was held this
week. with Robert v. Fleming,
presiding.
Bankers must adapt themselves to
the new conditions prevailing in the
modified economic system we now
have if they are to continue to con-
duct a business heretofore thought
indispensable to the public, said A. G.
Brown, of Toledo. Ohio, speaking on
New Credit Fields for Banks"
1T may be that have reached a
point where we are facing a demand
for different types of credit than we
have heretofore been accustomed to-
continued Mr.. Brown. Certainly the
small volume of Short-term credit.
as compared with the large volume
of long-term credit would indicate the
existence of a very different type OF
demand from that which has here
fore existed, and the necessity for a
change in commercial banking as
practiced today.
AS an example of the willingness
of the banks to do this, Mr.. Brown
cited the growing interest in personal
or character loan departments, and
the increasing number of banks that
are successfully handling automobile
finance paper and other installment
loans.
The Government is. at present,
the banks largest competitor, with
re- owned or sponsored lending agen-
sizes" continued Mr.. Brown. II the
bankers of the country want the Gov
ernment TO get out of the lending
business. it is up to them to demon
strate that they are not only willing
but able to take over as much OF avail
able sound credit risks as possible.
Government influence in the field
of private lending will be halted only
after it is generally acknowledged that
there is no need for its participation
The time has come for aggressive
action: mere opposition and criticism
will not suffice" he continued IL
is not enough for the bankers OF the
country to say that the granting OF
credit must be restored to private IN
strumentalities and that phase OF the
Governments business relinquished.
It is their obligation to do the Joo
and to begin now"
Views Differ on Gas Bonds.
Application by the Washington Gas
90. +ao D,,h1ic ITtilitipc Com
mission for authority to issue S3.OO00 600
AZ per cent bonds was greeted with
varied expressions of opinion in the
financial district.
Many holders of the present 81 .5OO,-
900 Washington Gas 6s series b due
on October l of this year, said they
had expected or hoped for an issue
into which they might switch their
funds when the maturing bonds are
paid off. AS the new bonds are to be
sold in a single block to the Metro
politan Life Insurance Co. present in
vestors in the old bonds will have no
opportunity to reinvest their money IN
the new gas issue.
Stockholders in the Washington Gas
Light Co. feel that the concern might
put out a new bond at a little lower
rate. Their views are, of course, more
or less biased, as the more money
the company have to pay out in BOND
interest, the less there is left for dlvl-
dends on the stock. These stockhold-
ers cited the fact the Eastern Gas &
Fuel Associates have just put out a
$4,000, 900 bond issue at per cent.
although it was offered under par.
The gas issue will be sold at par.
Several bankers expressed the
opinion in the financial district today
that the proposed S3,000,000 gas issue.
as well as all other bond issues placed
on the market by the utility companies
in Washington, should first be offered
to home investors. Gas company Gus
toners are especially entitled to such
consideration, they contend.
The company's answer to this claim
Is that selling the entire issue to an
insurance company saves considerable
extra expense which would result II
the bonds were placed on sale here and
distributed in large and small blocks.
This method also makes it unneces-
sary to register the issue with the
Securities and Exchange Commission.
As noted in the application, 81 ,500,-
900 is to be used to pay of the series
"B" bonds, 100000 to wipe out bank
loans and the remainder for necessary
expansion. Gas officials consider the
fact that an insurance company wants
the whole issue is highly compliment
tary to the corporations credit stand
ing.
New Munson Supervisor Named.
w. w. Coyle, passenger traffic man.
ager of the Munson Steamship Line,
announced today that the Washington
and Baltimore territory has been placed
under supervision of w. B. Wolfe, gen.
eral agent for the line in Philadelphia.
He will visit Washington at regular
intervals. He has had broad expert
ence in service of the Munson Line,
being in the New York Office before
his present assignment to the Quaker
City. While in New York he made
many trips on the company's steamers.
His Washington Baltimore appoint
nent is already effective.
Financial District Notes.
George o. VaSs and Raymond G..
Marx of the Riggs National Bank will
leave here early next week to attend
the Western Banking Conference
to be held in Chicago, April 2 and g.
I. j. Roberts of the same bank has
returned from short visit to Johns
town, Pa, where he found the flood
damage simply amazing" Not single
store in Johnstown escaped damage.
Edward c. Baltz and Carl J. Berg
mann have returned from the Miami
building and loan conference. Mr..
Bergman presided at the sessions and
Mr. Baltz made one of the best ad-
dresses of the convention, his associates
state. C. Albert White, treasurer of
the Columbia Building Association. and
Charles w. Schafer remained in