Evening star., 1940-06-11
Majority Of Banks
Show Solid Growth
In Last Six Years
Federal Deposit
Insurance Aids
$40, 900 Depositors
BY EDWARD c. STONE


ton has disbursed $l40,000,000 to
protect approximately $4,000 de-
positors in 3l2 insured banks with
S295 100000 Of deposits. 1t is esti-
mated that the corporation will re-
cover a little more than $lO4 900 900,
he adds.
The corporation losses, together
with nom recoverable insurance eX-
penseS, will amount to $4,000 900,
or l24 per cent of total deposits in
the banks involved, while deposi-
tors losses will amount to about l
per cent of total deposits.
During the 10 years preceding de-
posit insurance depositors losses
amounted TO approximately 25 per
cent of deposits in the banks which
suspended. Chairman Crowley adds
In his annual report.
During the siX-year period the
corporation. after setting aside ade-
.ouate reserves for estimated losses.
accumulated a surplus of $l63 000.-
600
p Notable Progress Made.
The majority of banks have made
marked progress in the last six
years, the report shows. BY the
close of 1889 the number of banks
in weak condition had been re-
duced to fewer than one-tenth of
the number of such banks in op-
grafton six years earlier.
The banking system, however. is
not free from weaknesses and po-
tentlal hazards. the report states.
Examination of insured banks in
1889 revealed that 10 banks had no
capital at all and that IS additional
banks had net sound capital equal
to less than per cent of the ap-
praised value OF assets. The COR
poration, in concert with other bank
supervisory agencies. is seeking i'm
provements in the condition of these
banks. One has been closed. one
merged. and corrections are being
applied to the eight others
During the last six years the in
f1ux of gold gave the banks huge
excess reserves, bond prices reached
record high levels, bank deposits
reached the highest levels ever re-
corded. and the amount of assets
improved more than so per cent.
In many cases banks were liqui-
dated without any loss to deposi-
tors, the report reveals
Bond Club Reservations Climb.
George M. Ferris, president of the
Washington Bond Club. said that
the attendance at the annual out
ing next Friday at the Congressional
Country Club now promises to reach
the 200 mark.
All tickets for the mock stock eX-
change session have been taken
and great interest is being mani
tested in the other special events
The afternoon Will be devoted to
golf and other sports The outdoor
exchsnge sesvlon will take place
late in the afternoon, followed by
the annual dinner.
The committees have completed
their work, many prizes are to be
awarded and the outing promises
to be one of the best in years, Mr.
Ferris said. Several bankers will
be among the guests of the bond
experts.
Bankers Laud Associates.
Resolutions adopted at the con-
vention of the District Bankers
Association paid special tribute to
James Tribe, vice president of the
National Bank of Washington. who
died during the year: to the late
Richard Hatton, for many years
financial editor of the Washington
Herald, "a good friend and highly
respected by all members of the
association" and to Raymond B.
Dickey.
The annual report Of Washington
G hapter, American Institute of
Banking, by Francis E. Robey. re-
tiring president, also paid special
honor to Mr. Dickey, who rendered
brilliant service to the chapter for
20 years, and always stressed the
Importance of higher education as
stepping stone to success.
The report also honored R Jesse
Chaney, who served as president of
the chapter in 1886 He died on
February II, 1910
Irwin IakeS StOnlerS Place.
Harold Stonier, executive manager
of the American Bankers Associa-
ton, resigned his position as direc-
tor of the American Institute of
Banking at the Boston convention.
on account of pressure of other
work Assistant Director William A.
Irwin takes his place DR.. Stonier
has been at the head of the institute
for many years and is great
favorite among Washington S Junior
bankers. He has addressed WASH
ington Chapter many times and as
manager of the A. B. A. is frequent
Capital visitor.
At the Boston convention Richard
w. Hill gave up the work as secre-
tary Of the institute and was sue
eeeded by Floyd Larson. He, too, is
very busy with his A. B. A. duties.
Home Financing Figures Jump.
A larger volume of funds for home
financing - $50 592 600 was loaned
by member savings and loan asso-
Citations of the Federal Home Loan
Bank System during April than in
any previous month since the sys-
TEN was established in 1882. officials
of the Federal Home Loan Bank
Board announce.
Total lending activity by all as
sociations-both member and nom
nember-Set new 10-year record
during April. while their loans dur
ing the first four months of this
year also established new post
depression January April record.
d. c. Exchange Prices Firm.
One hundred shares of Lanston
Monotype stock changed ownership
on the Washington Exchange today
at 28, unchanged from the last pre-
vious sale.
Washington Railway & Electric
preferred registered a l00-share sale
at 100, also unchanged.
Potomac Electric Power 512 per