Evening star., 1938-05-17
CAPITAL BANKS
PUSHL0AN PLANS
Thomas J. Groom Declares
Financing Stimulated as
Much as Possible.
By EDWARD c. STONE.

=
Thomas j. Groom of the District
Bankers Association declared today.
Mr.. Groom made the statement in
answer to the claims heard daily that
the banking institutions all over the
country are not cooperating to their
fullest ability in efforts to speed up
recovery.
So far as Washington is concerned,
such assertions have no real founda-
tions, according to the head of the
bankers association OF course, all
loans must be sound and backed up
with the proper collateral. Officials
in the banks cannot put out the de-
positors' money unless they are sure
they will get it back.
1t was learned today that the
building and loan associations are
also making their share of loans. In
fact, these institutions claim very
substantial part in helping recovery.
ID. C. Banks Press Campaign.
Washington bank and building and
loan officials have heard reports that
loans are not being made so freely
by banks in some other parts of the
country. Because of business uncer-
tainties, some banks are known to
have refused loans to business men
which were sound in every particular.
The banks here ale continuing to
Cooperate in the campaign for the
extension of modernization loans un-
der Title I of the Federal Housing
Act. This move was launched several
weeks ago by the District Bankers
Association and has met with marked
success, the demand for funds being
highly gratifying.
President Groom said today that the
applications have been gaining mo-
mentum every week The pace is still
being maintained. Washington prop
erty owners are grasping the oppor-
tunity to make alterations, renova-
tions and other Improvements. Funds
are still ample for these purposes, Mr..
Groom added.
Building CONSTRUCTION up.
Estimated expenditures for all build
ing construction increased sc per
cent during April over March in the
Nation as a whole, according to the
May IS issue of Building. And COM
mitments made for building construc-
ton during past months were sufd-
cient to indicate that expenditures
will continue to increase in the i'm
mediate future.
The April increase was the first
recorded since last July when estl-
mated monthly expenditures began
their steady downswing. But despite
the increase last months estimated
expenditures we're still 1872 per cent
below the activity for April last year
All types of building did not share
uniformly in the increase. For April
over March residential building in
creased 1877 per cent, general building
increased 35 per cent and altera tions
and repair activity increased IA per
cent
Seaboard to Buy Equipment.
The Reconstruction Finance Corp.
has agreed to purchase S2,11606l
equipment trust certificates from re-
ceivers of the Seaboard Air Line Rail-
way, Chairman Jesse H. Jones an
nounced. The commitment is sub
ject to the usual I. c. c. approval
The equipment trusts are serial
certificates. bearing 4 per cent rate.
hn tn fr,o
proximately 80 per cent of the cost
of nine ,800-horsepower Diesel elec-
trio locomotives, six passenger coaches
and four mail-express cars.
Atwood Insurance Speaker.
Speaking at the Cosmos Club before
a joint meeting of the Baltimore and
Washington Associations of Chartered
Life Underwriters, Albert Atwood,
magazine writer and economist, last
night questioned the New Deal picture
of one-third of the population i'll fed,
i'll clothed and i'll housed.
Many complicated factors, such as
extremes of age, sex. as well as the
inclination of millions of workers in
the low-income bracket to prefer
primitive existence, the speaker con-
tended, render statistics grossly mis-
leading.
While giving credit to the present
administration for awakening social |
conscience, he believed the general |
remedies so far proposed failed to
take account of the almost innumer-
able basic causes of low income. Only |
rf,,
declared, could the low-income prob
lem be solved.
D. c. Bank Debts Increase.
The April total of debts to in |
dividual accounts reported by Wash
ington banks was slightly higher than
the March total. in contrast to the
decline reported for the entire country.
The Standard Statistics Co. index
of bank debts for Washington in
April is computed at l43 Q920-24 aver
age equals 1000, against 139 in March
and l58 in April, 1887.
The indicated gain in Washington
business last month of 8 per cent
compares with countrywide decline
of per cent, the report says.
Diggs Addresses Bankers.
Acting Controller of the Currency
Marshall r. Diggs was to address the
Texas Bankers Association at Fort
Worth this afternoon on Irresponsible
tiles of Present Day Banking"
Edwin L. Harding, a graduate of
Georgetown Law School and now
Chicago lawyer. has been appointed
secretary and general counsel of the
Kellogg Co.. Battle Creek, Mich. A
native of Texas, he is 38 years old.
Capital Transit News announces
that operators in the year 1887
found and turned in to the lost and
found department. $1,l60.43 in cash
which had been left by passengers.
This was $40 less than the previous
year. Perhaps the business recession
made people less forgetful.
Credit Unions Growing Rapidly.