Evening star., 1939-11-13
Banks in Capital
Report Lively Demand
For Personal Loans
Record Of Payments
By D. 6. Residents
Is Outstanding
BY EDWARD C. STONE.

Washington banks are enjoying q
boom" in small loans to individ-
uals, according to survey made
today in the banking district.
This type of credit is now being
developed on a more and more ex-
tensive scale and is proving lucra-
tive to the banks featuring such de-
partments.
Large excess reserves and a de-
cline in the demand for loans by
commercial borrowers have caused
many banks to explore new fields
for extending credit in order to keep
more of their money at work. Con-
sumer lending-loans to individuals
for various purposes-has proved
highly satisfactory.
From the opening day the Morris
Plan Bank has featured loans to
individuals; the City Bank was one
OF the first to press so-called small
loans, and one of the latest banks
to install such a department is the
National Bank of Washington. Until
the depression curbed the CONNER
cial-loan demand many banks in the
city frowned on small loans. Now
practically all the banks make them
freely and are glad to get them.
Wide Variety of Loans.
Under the personal-loan plan
money is obtainable for taxes, med
ical expenses, educational fees, in
surance premiums, emergency re-
pairs, purchase of household appli-
ances and other necessary expenses
which may or may not come UP
suddenly. Many of the loans are
paid off by monthly installments,
and the bank officials say the av-
erage rate of interest is around AZ
and Az per cent. The amounts bor-
roWed In these personal-loan de-
partments run from $50 to ST 900 in
most instances. according to officials.
Often only the borrowers signature
is required.
Loans to repair and modernize
real estate are among the most pop-
ular in this type of lending, off,
clals said today. Loans to refinance,
for the purchase of automobiles
and character loans made upon the
signature of one or more individ-
uals are also gaining in favor, bank
erS assert.
Washingtonians have a 100 per
cent record in paying off personal
loans, according to the record of the
Bank of Commerce g. Savings. Of
flcials state that thousands of such
loans have been made, involving
several million dollars. that most
OF the monthly payments have been
made when due and that no losses
have been experienced
How Funds Are Used.
While large percentage of the
loans have been made to real estate
owners to repair and improve their
real estate and to automobile own
ers to reflnance or purchase an au-
tomobile, the largest volume has
been personal or character loans.
A survey of the banks records on
personal loans shows they are made
for the following purposes:
Consolidation of debts, 43 per
cent; doctors bills, 20 per cent;
taxes, 8 per cent: vacation. per
cent and miscellaneous, % per
cent
officials of other Capital banks
said today that their experience
in handling small personal loans
had been practically the same as
to losses. They have had to write
of very few. At the same time they
have put large amount of money
to work that otherwise would have
been added to excess reserves.
The National City Bank of New
York was the first of the very large
institutions to go in for small loans
IN big way. This bank has often
stressed the favorable results. The
plan, started as an experiment, is
here to stay, Washington financiers
declared today.
Banks Boost Chest Funds.
John A. Reilly, president of the
Second National Bank. and chair
man of the bank group of the Com
munity Chest, reported today that
subscriptions for the Chest cam
paign are moving along at high
speed and that the total subscribed
is now ahead of the same time a
year ago
More than half Of the annual
quota assigned to the banks has al
ready been raised. Chairman Reilly
is very much pleased with the en-
thusiasm manifested in the different
banks and still more pleased with
the financial progress reported.
Each bank has a key man under
General Chairman Reilly and these
men are doing a very fine Job in
working for 100 per cent quota re-
suits.
Exchange Listing Sought.
The Washington Gas Light Co.
has taken steps to list the common
stock on the New York Stock Ex-
change. it was learned in the
financial district here today.
From New York came a dispatch
which stated that the Washington
Gas Light Co., ownership of which
was recently transferred from hold
ing company control to the public,
has filed an application for listing
the stock in New York.
At the time the common stock
was sold to the public, it was stated
that the issue would eventually be
listed on the New York board. 1t
Is already listed on the Washington
Exchange, selling recently at 2Sl2.
Had the stock been listed in Wash
ington only, it would have meant
a great deal of business to the ex-
change here. Some of the common
stock is still on the market. There
are 425,000 shares listed here.
Heard in Financial District.
Albert S. Galley, executive vice
president of the Lincoln National
Bank and treasurer of the District
Bankers Association, who has been
seriously i'll, is reported today to be
improved. He is now able to see
visitors.