Evening star., 1938-05-14
CROWLEY PRAISES
BANK CONDITIONS
Compares Present Strength
With Weakness During
Other SIumps.
By EDWARD C. STONE.

by EDWAND u. S1ONE.
Perhaps the most notable feature oi
the current economic situation is the
excellent condition of the banking
system in general as compared with
its vulnerable position during previous
periods of business inactivity, said Leo
T. Crowley, chairman, Federal Deposit
Insurance Corp, in addressing New
Jersey bankers at Atlantic City yester-
day.
The past few years, he added, have
seen notable improvement in the
quality of assets held by our banks.
Nearly three and one-half billion
dollars of bad assets have been elimi-
mated since 1898. This house cleaning
was made possible by the injection of
large amounts of new capital into our
banks by the R. F. C. and by local
investors, by the revival of values and
by improved bank earnings.
For the most part sound and ac-
ceptable assets have been taken into
our banks to Offset the growth in
deposits which occurred during the
past four years. Cash and due from
banks at the end of 1887 constituted
% per cent of the assets of insured
commercial banks of the country.
United States Government securities
made up another Is per cent.
Bank loans appear on the whole to
be sound. Only relatively small
proportion of the securities held by
the banks are of low credit status,
Chairman Crowley stated.
Junior Bankers Elect Slate.
Joseph R. Fitzpatrick, an assistant
cashier of the Second National Bank,
was elected president of Washington
Chapter, American Institute of Bank
ing, at the annual election Thursday
night. Mr.. Fitzpatrick has been active
in institute affairs for many years
and brings to the presidency a great
deal Of experience gained through COM
mittee service in the local chapter.
He is one of Washington's representa-
tives to the National A. I. B. con-
vention to be held June clio in Louis
vile.
Francis E. Robey, an assistant
cashier of the Bank of Commerce &
Savings, was elected first vice presi-
dent, and Edward NJ Blaiklock of
the Washington Loan & Trust Co. is
the new second vice president. Miss
Frances E. Nagel of Riggs National
Bank will fill the position of secre-
tary.
Raymond L. Jones of the National
Metropolitan Bank was elected chief
consul and Miss Leona M. Draeger
Of the Washington Loan e. Trust Co.
assistant secretary. The new men,
bers of the board of governors are:
James A. Ahalt, City Bank: G.
Elmer Flather, Union Trust Co.: WAL
ton L. Sanderson, Hamilton National,
and G. Crawford Turnbull, Morris
Plan Bank.
Roper Finds Slump Slowing Up.
Secretary of Commerce Roper be-
lieves the bottom of the recession
may have been reached" although he
does not yet see any substantial up
turn. Commenting on business, he
added:
The relative stability in industrial
activity in the four months of the
current year ending April is in sharp
contrast with the precipitous decline
recorded during the last four months
OF 1887, although industrial produc-
ton in the elapsed portion of the
present year average about one-third
below that for the corresponding Pc
riod of 1887"
The Secretary's survey. in drawing
parallel between the trends of pro-
duction and employment in recent
months. points out that total nom
agricultural employment showed only
a moderate reduction during February
and March after having declined very
abruptly in the preceding four months.
Capital Is Trade High Spot.
Washington is listed in the May IS
issue Of Forbes Magazine as one of
the best places in the United States
for concentrating sales activities, for
collections and for promoting other
business operations.
Washington is the center of the
third best high spot territory in the
United States today, according to the
magazine figures. Two other nearby
cities make up this territory.
While business in this territory is
not ahead of year ago, it shows a
smaller decline than other territories
containing 100000 or more popula-
ton.
For the territory which includes
Washington, the median loss over last
year has recently been per cent, the
magazine says.
New Concern Reports Surplus.
United Food Stores Corp, 1915 E
street S.W., has just made a report
after five months operations which
shows the concern has accumulated
surplus of s4,125.56 during that Pc
riod.
Net earnings of the company have
been more than 2l2 times the sum
necessary to meet the preferred stock
dividend requirements for the period
from November l, 1887, to April 2,
1888, President Meyer L. Sody an
nounces.
The report shows total assets
amounting to sl69,4e6.60 and total
liabilities of S72,853.s3. The inventory
item is placed at more than $4,000.
Among the liabilities are accrued in
terest, taxes and expenses, including
District of Columbia 1888 business
privilege tax of $4,6l939, the validity
Of which is contested.
Financial District Notes.
The auditors section of the District
Bankers Association will hold the
June annual election, dinner and
dance at the Wardman Park Hotel
The annual meeting was held at the
same hotel last year.
State and municipal financing FOR
the month of April totaled only SAT-
458,023 as compared with $95 1865, 1925
in April 1887. This is the smallest
April total during the past 10 years,
according to the Daily Bond Buyer.
Total for the first four months of this