Evening star., 1939-05-08
Banks Are MAKING
Vigorous Efforts
To Boost Loans
New Survey Shows
Special Services and
Longer Credit
By EDWARD C. STONE.

made public today by the council.
The study indicated that sc out
Of every 100 banks are making such
efforts, that "A out of every 100 are
advertising tor loans, that 63 out
of every 100 are soliciting loans and
that So out of every 100 are offer
ing lines of credit. 1t also reports
that only BIS per cent of these open
lines of credit are being used by
business firms.
The data was gathered by means
OF a QUESTIONABLE sent to group
of banks representing. as to class,
size and geographical distribution, a
true cross section of the banking
structure of the country.
New Methods Adopted.
Other methods used by replying
banks to stimulate loans are COM
petitive rates, maintenance OF a
record for taking care of the credit
needs of worthy customers, Offering
of special services in connection with
loans, working with borrowers in
need of help to develop programs
for the liquidation of their debts,
suggestions to customers to bring in
others in need of credit, making
applicants feel at ease when they
ask for loans and the granting of
various specialized types of loans
such as character or small loans to
individuals, loans on life insurance
policies and loans to finance install
ment purchases.
The study also indicates that the
banks have an average of LOIS loans
outstanding to local borrowers and
736 loans of less than ST 900 to small
borrowers, the average size of such
loans being $241.
Replies received to the question
naire indicated that 20 out of every
100 banks are making term loans
to business of two years or longer
maturity; that the average number
of such loans per bank is IS; and
that the average size of such loans,
exclusive of loans made by the sew
eral big city billion-dollar banks,
is $1.343. A detail analysis of the
figures, according to the study,
shows that small banks are making
rate with the needs of the small
businessmen of their communities
while the big city banks are extend
ing accommodation of this type in
substantial figures"
Many Personal Loans.
The study also shows that 83 out
Of every 100 banks are granting per-
sonal loans, that the average num-
ber per bank is 355 and the aver
age size is $195. Sixty-two out of
every 100 banks are granting loans
for instalment purchases.
Forty-one per cent of the reply
ting banks said they are making
F.. H. A. insured mortgage loans
and that the average size of these
loans is $3,709. Forty-three per
cent reported that they are making
building loans without F. H. A. in
surance.
Summarizing the results of the in
vestigation, the report says, The
data supplied in response to the
questions justify the following state
ments:
u. A very high percentage of the
commercial banks are making ac-
tive efforts to stimulate the use of
commercial bank credit on the part
of both business concerns and indi-
viduals in their communities.
20. They have made liberal adapt
ations in their loaning methods and
policies in order to meet the varied
requirements of individuals and
business concerns applying to them
for credit.
"3. The needs of small borrowers
IN the field of business and personal
finance alike are being we'll taken
care of by the commercial banks"
Ferris Gets S130,000 Bonds.
George M. Ferris & Co., Washing
ton investment firm, was today
awarded an issue of $4,000 Cumber-
land, Md, water improvement bonds
Of 1899, due May IS, 1859. The
award was announced at Cumber-
land, where bids were opened.
The price paid was 102.1l for ~
per cent coupons, making the yield
to maturity 212 There was wide
interest in the award, there being
keen competition from several other
bidders. The $4,000 issue will be
Seoffered to the public at once.
This was the first siZable entry Of
George M. Ferris & Co. into the
municipal bond underwriting field,
it was announced here. The award
was highly gratifying.
Roland Carr Again Winner.
Members of Washington Chapter,
American Institute of Banking, were
elated today over the public speak
ing victory of Roland T. Carr of the
Riggs National Bank Saturday night
at the Willard over six contestants
from as many different cities.
This was the second time Roland
Carr has won this contest. He will
represent the chapters in this ter
ritory at the annual convention in
Grand Rapids, Mich. as he did last
year at Omaha. With the additional
experience he has obtained since
then, his friends think he has a fine
chance of winning the national con-
test this year.
Washington Chapter has had a
public speaking course nine years
Three times a representative hao
reached the national contest. This
Is q decidedly good record when it is
recalled that there are about 200 in
stitute chapters trying for the same
honors.
Financial District Comment.
Oficers and committee chairmer
Of the District Bankers Association
who spent the week end at Hot
Springs arranging for the annua
convention of the association, re-
ported in the financial district today
that the last detail had been set.
tied. The convention is expected tt
be one of the largest in years.
Washington Gas Light preferred
opened trading on the Washington
Exchange today with 10-share sale
at los, unchanged. Lanston Mono
type, which appeared on the boaro