Evening star., 1937-12-08
BANK STANDARDS
AROUSE INTEREST
D. c. Financiers Study List
of Minimums Favored
by Supervisors.
BY EDWARD C. STONE.

adopted here this week by the Ex-
ecutive Committee of the National
Association of State Bank Super
visors, L. A. Harr, chairman.
Efforts will be made to have the
suggested standards embodied in all
State laws pertaining to banking
operations.
The move is in line with sugges-
tions made by Leo T. Crowley. chair
man of the Federal Deposit Insur-
ance Corp. who insists that all in
sured banks should be run under the
same high standards Otherwise the
strong banks have to make up for
the shortcomings of the weaker ones.
The six points just outlined are:
l. A minimum capital requirement
Of not less than $4,000.
2. Restriction of loans to any one
borrower to 10 per cent of a banks
capital and surplus.
3. Prohibition against purchase of
common stocks.
4. Prohibition against loans to any
officers, directors or employees.
5. Uniform examination practices.
6. Adequate tenure of Office and
salary for bank supervisors and ex-
aminers.
Bank to Resume Dividends.
Directors of the Second National
Bank, at their regular meeting today,
declared 2 per cent dividend cover
ing the semi-annual period ending
December 81, President John A. Reilly
announced this noon. The dividend
will be paid to stockholders of record
as OF December 20 and will be the
120th which this institution has dis
bursed. Second National Bank stock
is now selling over the counter around
$50 share. Today's action will be
most gratifying to the stockholders as
1t comes as the result of steadily ex-
panding business.
At the same meeting Frederick A,
Hessick, president of w. H. Hessick
& Son, Inc, was elected to the Board
OF Directors to succeed the late Fred
Drew. The new director is a native
OF Washington and graduated from
Business High School in 1915. Only
AZ years old, he has made an unusual
business record.
Mr.. Hessick is president of the
commissioners Corp. which has the
local franchise for the distribution of
Westinghouse air conditioning prod
ucts. He is also one of the trustees
OF Youngsborough Syndicate, Inc,
owners and developers of a large tract
OF industrial property in Northeast
Washington.
During the World War he served in
the 1lth Division. A member of the
Masonic order he has attained the
thirty-second degree of the Scottish
Rite and is also Shriner.
Bankers Plan Joint Session.
H. Sadtler Nolen, an examiner
with the Maryland State Banking
Commission. will be the guest speaker
tomorrow night at the annual joint
meeting of the auditors and fiduci-
aries sections of the District Bank
ers' Association. The meeting will
be held at the Lafayette Hotel, be-
ginning at o'clock
Mr.. Nolen will speak on Audit
ing and Control of Individual Trust
Departments. Formerly engaged in
the commercial banking field in Bal
tlmore, he is considered an expert
in finance. As these joint meetings
have been growing more and more
popular every year, a record attend
ance is anticipated. Irving Zirpel of
the Union Trust Co. is chairman of
the nduclaries' section and Harry l..
DoWney, Washington Loan & Trust
Co., heads the auditors section
Business Slump Reviewed.
The Washington Office of Alexander
Brown & Son is distributing a review
of the recent business recession and
decline in stock market value. with an
attempt to explain what happened
and why.
Among the reasons assigned are
the threats of European war which
might involve the United States. the
French financial situation, aggressive
action OF labor unions, widespread in
creases in wages, mounting burden of
taxes, narrow profit margins, increas-
Ing national debt, unbalanced budget
adoption Of hand-to-mouth buyinp
policies by big corporations curtail-
ing OF expenses and reduction of en-
ployment, and the idea that the era
OF business recovery might be at an
end.
Investors and spectators started
selling securities and found the mar
ket too thin" to absorb as many Sc
curities as were offered. Prices
dropped still further The booklet
gives a host of other interesting rea-
sons for the downturn. The essence
OF recovery rests in speedy Govern
ment action to wipe out uncertainty,
the investment firm believes.
Controllers to Hear Knapp.
j. FRANK Brown, chairman of the
National Capital Group of Controllers.
announced today that Carl T. Knapp,
controller of Frank r.. Jelleff, Inc. will
address the December meeting next
Tuesday at the Lafayette Hotel at
6:45 on Inventory Procedure" Other
subjects will be discussed by members
who are the controllers and account
ing executives of the leading depart
ment stores.
All the banks in the city will be
open as usual on December "a, the
day before Christmas, President
Thomas j. Groom of the District
Bankers Association said today. All
Government workers get the day of
by the Presidents executive order u
Far from being legal holiday in the
District, 1t will be one of the busiest
business days of the year Every in
vestment and business house in the
city will be open
National Savings g. Trust Co. stock
figured in 118-share sale on the
Washington Stock Exchange today
at $235 share. It was the first sale
In q long time, the last previous
transfer taking place at ITO, making
an advance of IS points.