Evening star., 1936-04-29
FLEMING PRAISES
BANKING OFFICIALS
"A. B. A. President Is Pleased
by "Very Fine Contacts"
With Government.
BY EDWARD C. STONE

Robert v. Fleming, president of
the American Bankers Association,
stressed the Every fine contacts" exist
ing between Government officials in
Washington ard members of the A. B.
A. in an address before the largest
Spring Executive Council meeting on
record, which adjourns at the HomC-
stead, Hot Sprinks. Va, today. Adding
that the association is in no way
engaged in politics, he asserted, how
ever, that cooperation with the gov
ernor of the Federal Reserve Board
has proved particularly advantageous
in developing practical and workable
regulations"
The chief purpose of the A. B. A.,
the Washington banker said, is to
bring about better public under
standing of the banking business. He
pointed to the unusual interest that
bankers are taking in present banking
problems, as shown by the all-time
registration of 421 members of the
council and others at the Hot Springs
session, according to news dispatches.
Merrel P. Galloway, Guaranty Trust
Co., president of the Trust Company
Division of the A. B. A., reported on
the work done by the division toward
developing common trust funds. The
common trust fund, he said, is an
investment fund built up by corpo-
rate trust. institution by combining
funds belonging to various trust ac-
counts in one fund for the purchase
of securities in which each will have
q proportionate interest. The council
passed a resolution indorsing the
Trust Divisions efforts Ito develop
common trust fund plan in a form
which will meet Federal Reserve Sys-
tenn requirements"
Officials Note Progress.
F. N. Shepherd, executive manager
of the association, reported in detail
on the work of the past six months.
placing special emphasis on the A. B.
AS educational organization, in rela-
ton to progressive banking practices
within the banking business and the
wider public information being dis
tributed regarding the principles of
banking and the service rendered the
public.
Gurden Edwards, director of pub
licity, stated that the association is
serving more than 1900 banks with
advertising material Last year the
department produced more than $40
newspaper advertisements, covering
general banking, trust subjects, COM
mercial banking, savings and safe de-
posit services.
Col. Leonard P. Ayres, Cleveland
banker, told the bankers there are no
effective hedges against imitation. He
outlined three important guiding
rules" for bank management during
imitation periods, but said it did not
seem probable that during 1886, 1887
and 1888 there would be a period of
rapidly rising prices amounting to
sbnormally high levels and ending
with new stabilization of the dollar
at drastically decreased gold value"
Branch Banking Spreads.
North Carolina, in this Federal Re-
serve district, was one Of the leaders
among all the States in the Union in
the extension of branch banking last
year, the Federal Reserve Board re-
ports in the latest bulletin. In 1885
North Carolina saw the opening of 20
new branches which boosted the total
from SO to 88, the 25 banks maintain
ing branch Offices in 1884 having in
creased to 81 by the end of last year.
OF these branch banks operating at
the end of 1885 niAe were in the
head Office city, % in the head Office
county and Sc outside the head Office
county. Most of the other branch
banks started during the year were
located in Iowa, Indiana and Wis
consin. Virginia added one new
branch bank in 1885, lifting the total
OF such institutions from SO to 10.
OF these, 81 branches are in the head
Office city, 80 in the head Office county
and II outside the head Office county
The number of branch banks in
Maryland was reduced during the
year, dropping from rs to To- Mary
lands division of branch banks in
cludes "a in the head Office city, 18
in the head Office county and 20 out
side the head Office county South
Carolina added one new branch bank
in 1885.
The District of Columbia record re-
manned unchanged. Washington now
has 80 branch banks
So Voted on Railway Common.
Directors of the Washington Rail-
way g. Electric Co. have declared a
So dividend on the common stock,
payable June l to stockholders of
record May Is. This is similar to
the SO dividend paid three months
ago and is at the rate of S36 year.
The present bid for the stock on the
Washington Exchange is around $3.50
a share. The regular quarterly of
S1.25 per share has been declared on
the same corporations preferred stock,
this payment also being due June /
to holders of record May Is.
Directors of the Potomac Electric
Power Co. have declared the regular
quarterly dividend of S150 per share
on the per cent preferred stock,
payable June ! to stockholders of
record May Is, and the usual quarter
ly dividend of S1.3712 share on the
51s per cent preferred issue, payable
June / to shareholders of record
May IS.
Loans Reach New Peak.
Parallel with the rising curve of resi-
dental construction, the outstanding
advances of the IL Federal Home Loan
Banks to their member private thrift
and home-flnancing institutions have
registered an unbroken rise each
month since April, 1885, reaching a
new peak of 1o3,537,644 on April /.
1885,
In the past IL months such out
standing credits, made available to
home owners and home builders
through the 3,543 members of the
bank system throughout the United
States, have increased by more than
40 per cent, in spite of heavy repay
1nents by members.