Evening star., 1936-08-10
ORAL BANK ORDERS
BARRED BY BOARD.
Reserve Governors Rule on
Switching Savings to
Checking Status.

eral Reserve Board to the effect that
funds may not be transferred from a
depositor's saving account to his
checking account merely on oral or
telephone instructions from the hold
er of the account. The question came
up under Regulation c. the legal
opinion being presented in the latest
Reserve Board Bulletin.
1t is the view of the Federal Re-
serve Board that a member bank
should not be permitted to transfer
a sum from depoSitor'S savings ac-
count to his checking account or per-
NIT any other withdrawal from his
savings account merely on a telephone
or other oral order or request from
the depoSitor. While the regulation
does not expressly so require, it does
contemplate that withdrawal from
a savings deposit will be made only
upon the written order or receipt of
the depositor.
In this connection, attention is
called to the requirement that the de-
positor may at any time be required
by the bank to give 80 days notice in
writing of an intended withdrawal
and also to the requirement that
every withdrawal made upon preSen-
tat1on of the pass book shall be en-
tered therein at the time of with
drawal and every other withdrawal
shall be entered therein as soon as
practicable thereafter.
The withdrawal of funds from a
savings deposit in case where the
oral request of the depositor, would
facilitate evasion of the purpose Of
the regulation, would be inconsistent
with sound banking practice, and
might give rise to numerous questions
or even litigation between the bank
and its depositors.
The board is of the opinion that
such practice should be discouraged
and that a deposit with respect to
which such Withdrawals are permit
ted should not be classified as a saw
ings deposit.
Cement Shipments Up.
The upswing in construction here in
the District of Columbia is reflected
by official figures from the Depart
ment of Interior showing the gain in
shipments of Portland cement into the
National Capital.
Cement shipped from mills into the
District increased from 66,72l barrels
in June, 1885, to 92,610 barrels in
June of this year. The increase in the
of 10
was from 86,975, to 91,O14. The six
months of 1885 showed 375.523. which
jumped to 385, ,489 for the first six
months of this year The gain for the
country as a whole was substantial
for this six-month period increasing
from 3l,706,494 to 46,56l ,662.
Bank Liquidation Pushed.
Progress in liquidation of the Fed
eral-American National Bank & Trust
Co., as reported by Receiver Cary A.
Hardee. makes fine showing for the
payment of stock assessments.
Hardee says the collections from
this source "have been more than sat-
isfactory especially in view of the con-
test" in the courts Conclusion of the
stipulation that the stockholders will
carry their court fight no further indi-
Gates payment of approximately s14O,-
600 more to add to the S1,100,000
heretofore collected from stockhold-
ers.
This brings the collections "far
above the average from stock assess
ment claims" according to the re-
ceiver. Special effort" will now be
made to collect the remainder of the
assessment, Hardee said, lit being
realized that some few have with
held payment pending outcome of the
suit" There is no immediate pros
pect, however, for a dividend to
creditors, although the end of the
court fight clears one of the major
obstacles to such dividend.
S. E. C. Exemption Asked.
The Washington Gas Light Co. of
Montgomery County a subsidiary of
registered holding company has
applied to the Securities and Ex-
change Commission for exemption
OF two security issues from the pro-
visions Of section 6 (a) of the public
utility holding company act of 1885.
The exemptions are sought with
respect to an issue of $128,O00 prin-
cipal amount of general mortgage
"A per cent bonds, series A. ma
turing March l, 1856, and an issue
of certificates representing 500 shares
OF the company's $40 par value capi-
tai stock.
Opportunity for hearing will be
given at 2 pm. August 27, 1886, in
room 1101, Securities and Exchange
Building, 1778 Pennsylvania avenue
Bank Stocks Climb.
New York City bank stocks ad-
Vanced to a new high for the year
during the closing day of the past
week. according to records compiled
by Holt, Rose & Trester, the aggre-
gate market value of 16 leading is
sues amounting to S2,089, ,234, 900.
There was a slight decline from the
high mark at the close, however, the
l6 issues ending the week with an
aggregate market value of $2,O83,-
1000, compared with ST ,999, 658, 900
at the close of the previous week. a
net increase for the week of $685.
$4,000. or 4.19 per cent. These fig
ures compare with the 1886 low of
S1,552, 2,855 900, registered on April 80.
Insurance stocks in the New York
City market registered slight rise
during the past week The aggregate
value of 20 leading fire and casualty
insurance issues on August 7 totaled
$657,859,000, compared with $685.
269,000 at the close of the previous