Evening star., 1939-12-31

yiduals and companies which are
able to show ability of repayment.
1t is interesting to note the data
prepared by the American Bank
ers Association with respect to loans
made in the District of Columbia.
It reveals that during the first six
months of the year $4,000 new loans
for a total of s37 100000 and $4,000
renewals for the amount of SAL
100000, were made by banks in the
District.
These figures are representative
Of those for the country as whole.
The American Bankers Association s
national survey revealed the enor-
nous figure of $4,000 loans having
been made during every banking
hour in the first six months OF 1889,
these loans having been made by
only half of the countrys COM
mercial banks which made reports
to the association.
2,154 Modernization Loans.
Washington banks have continued
to cooperate in the Federal hous-
ing program of extending loans for
the purpose of renovation and mod
ernization. as provided for under
title I of the National Housing Act.
During the first 10 months of 1899,
Washington banks made 2,154 mod
ernization loans for a total amount
of S98OO05O3. This is an aver
age Of about 215 title loans per
month.
The banks also extended, during
the first 10 months of the year,
"a title II mortgage insurance
loans. in the amount Of S526,200.
These loans provide for long-term
payments for home owners.
It can readily be seen. that there
has been a large demand for credit.
resulting in general business ex-
pansion. increased employment and
improved living standards.
Another good sign Of business
prosperity in the District during
the year is represented in the
monthly totals of checks passing
through the clearing house here. The
total amount of checks cleared in
the month of November. for eX-
ample, was over $100,800,000, which
is approximately the same as the
clearings for the past two years.
Check clearings represent about 80
per cent of the city's financial
transactions
Sharp Gains in Deposits.
Time deposits including savings
accounts in Washington banks, as
Of the call of the Comptroller of
Currency in October. established a
new high mark for the Capital. On
the date of the October call, time
deposits totaled $1136O7,OOO, as
compared with $11O.447,0 900 in Sep
tember the year before. The ag-
gregate deposits in the % Wash
ington banks as of the October call
reached an all-time peak of over
1855, ,O64,OOO. There was a gain in
deposits of over S31 1892 900 between
the June 30 call, this year, and Octo-
Der 2.
Due to the lack of sources in
which to invest these large sums of
money, 1t is of apparent necessity
that banks cannot pay high rates
Of interest on time or savings de-
posits. This is not only true in the
District, but throughout the Ma
ton.
The majority of the local banks
have continued to operate Christ
mas Savings Clubs. Although it has
been necessary to eliminate pay
ment of interest on these accounts,
the clubs are proving as popular as
ever. Approximately $4,000 900 In
Christmas savings was disbursed
by banks here this year.
Washington is unique in that the
economic structure of the city is
based on the large Government pay
roll, and our businesses are not so
severely affected by cycles of ma
tional prosperity and depression, as
are other cities Of highly indus
trialized character.