Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-01-25
DC. BANKERS BACK
FROM CONFERENCE
Many Ideas to Expand Bust
ness Are Offered at
PHILADELPHIA.
BY EDWARD c. STONE.


Warrington bankers, back from
the Philadelphia conference on bank
ing management and methods, were
enthusiastic today over the two-day
session and the able addresses pre-
scented. Many new ideas were offered
ct the final sessions on methods OF
obtaining more business, several
speakers stressing the importance OF
the extension Of more small per-
sonal loans.
1.-THE principal credit problem
facing the commercial banks is the
declining volume of short-term paper
available" George F. Rand. q Buffalo
banker, told the conference. Another
problem Is the position of the COM
mercial bank among the plethora
Of lending agencies which exists to-
day, including the Government and
business itself. A third problem Is
that of trying to make long-term
loans and investment with short-term
funds"
The rise Of installment financing in
recent years, according to David c.
Barry, vice president Lincoln Alliance
Bank B. Trust Co., Rochester, N. Y.
b due the fact that the average man
has proved himself to be good
credit risk and lis getting more
sympathetic consideration In estab-
lished banking institutions. Credit
facilities previously beyond him are
now being made available on new
basis"
Home Financing Moves Vital.
Revolutionary importance" was
ascribed to the provisions of title II
Of the Federal housing act. which
provide for the elimination of short
term maturities, amortization and the
prohibition against second mortgages
in financing done under this title by
J. Raymond Roos, cashier National
Commercial Bank g. Trust Co., Al
bany. There are high hopes that
this program will place home own
ership on q more stable basis, he
said.
Immediate consideration of the in
stallation OF personal loan depart
ments in all banks was advocated by
Louis S. Thomas, president East Hart
ford Trust Co. Il am convinced, SAID
Thomas, that if adopted by each and
every bank throughout the country
and given the same careful, intelligent
and enthusiastic attention as you now
devote tc your present loans, a per-
sonal loan department will unques-
tionably help materially to solve to
q large degree some of the many prob
lens now confronting you in your In
come accounts and simultaneously re-
duce your excess cash reserves SUBJ
gtantially.
Meem Reports Gains In 1885.
In his annual report Harry G.
Meem, president of the Washington
Loan & Trust Co., reported steady
growth and referred to rising conf
dence in the present soundness OF BUSH
ness conditions. He said that loans
had been made to all worthy appli-
cants during 1885, and that the bank
had continued to cooperate in the
better housing program OF the Fed
eral Housing Administration, ma
terial factor in increasing the volume
Of real estate loans. In predicting
further improvement during 1896. Mr.
Neem said:
Local bank clearings for the past
year have exceeded the totals for 1884
BY nearly two hundred millions, re-
1iecting the notable improvements IN
trade in this area. Postal receipts,
utility companies earnings and build
Ing permits paint picture Of marked
progress in general business recovery.
Resumption Of dividend payments by
many companies and increase in mar
ket quotations of many securities also
aive rise to well founded belief that
the improvement will be continued
during the current year.
THE idea that business is usually
below normal during election years, "
Mr.. Meem added, has little founda-
ton as records show that out of SO
such periods, 81 have been prosperous,
while the other is were affected by
aSltecedent depressions."
Mr.. Meem said that renewed &C.
tivity in the real estate field. already
In evidence at the close Of 1884, con-
tinued during 1885, reaching the
highest peak since 1928, resulting IN
Increased profits.
Wholesale Trade Improves.
The Federal Reserve Bank Of Rich
Mond reported today that sales in
five leading wholesale lines reported
by So firms in December showed gains
over December, 1884. Groceries were
UP ~ per cent, dry goods ~ per
cent, shoes 81 per cent, hardware
S.e per cent and drugs l.9 per cent.
Total grocery sales in 1885 were Z
Per cent higher than a year ago. dry
foods were of 81, shoes, 90; hard
ware up rs per cent and drugs, per
cent. The most important change Il,
stocks on hand at the end of Decem-
Der compared with December a year
ago was In shoes, an increase Of 1e
per cent. Compared with November
stocks In all lines we're lower excep,
IN shoes.
December collections were particu-
larly good. All receivables due or
groceries at the beginning OF thu
month were paid, IS per cent was paiG
on dry goods SO per cent on shoes. q
On hardware and "a per cent on drugs
the report said.
Bank Interest Rates Fixed.
The Federal Deposit Insurance
Corp. has prescribed maximum In
terest Of to az per cent to be paie
by 1900 insured banks which are no
members of the Federal Reserv'
system. The new requirements:
"A maximum rate of az per cent OF
any savings deposits; any time de
posit having . maturity Of six month
q more, or any postal deposit.
A maximum rate Of per cent Of
any time deposit except postal saw
a0~~ ~ lace fhon sly monthS ma