Evening star., 1940-05-20
Bank Profits Reveal
80 Per Cent jump
In 1899 Over 1898
Federal Deposit
Insurance Officers
Note Other Coins
BY EDWARD C. STONE.

exception of 1896, were greater than
for any other year of deposit in
surance, the Federal Deposit In
surance Corp. reported today. The
1889 increase in net profits resulted
from higher net earnings, higher net
recoveries and profits on securities
and lower net charge-offs on loans.
Fluctuations in net profits since
the inception of deposit insurance
have been substantial from year to
year. They have reflected, in large
part, fluctuations in profits and
losses on securities, arising from the
efforts of many banks to supple
ment operating income by specu-
lating on price changes in the bond
market, chiefly in high-grade bonds.
In 1899 recoveries on securities and
profits on securities sold exceeded
charge-offs on securities by sec, ,000,-
600, as compared with $4,000, 900 in
1898.
Met current operating earnings of
all insured banks increased in 1899
to $3.50, 900, ,000-except for 1887 the
highest figure reported since the
inception of deposit insurance. The
increase over 1888 was the result
Of higher gross earnings, with prac-
tically no change in total current
expenses.
Etu Notable Gains in Loans.
The improvement in gross earn
angs was largely attributable to an
increase of $4,000, 100000 in in
terest and discounts on loans.
Interest and dividends on securi-
ties decreased for the third consecu-
tive year and we're lower in 1899
than in any year of deposit insur-
ance.
Income from commissions, fees
and service charges has increased
in each year of deposit insurance
and was per cent higher in 1899
than in 1885,
Interests payments on deposits
decreased 6 per cent in 1899, and
constituted less than 20 per cent
OF. current operating expenses.
Common and preferred cash divi-
dends declared and interest paid on
capital amounted to S232 900 900 in
1899, as compared with 1922, 100000
in 1888, the report says.
Bond Club Outing on June IA.
George M. Ferris, president of the
Bond Club of Washington, and
Fenton Cramer, chairman of the
1910 Outing Committee, announced
today that the annual grand frolic
will take place this year at the
Congressional Country Club on Fri
day. June IA.
The stock exchange session and
all the other features will be re-
peated this year, with new ones
added. The Acacia Cup is again
offered as the leading golf prize,
while another prize will be an
automobile. The outing will con-
clude with the annual dinner.
President Ferris announced that
Frank Smith, of Alexander Brown
Il Sons, will handle the exchange
and dinner tickets. Kenneth S.
Wales is chairman of the nominat-
ing for next years officers; Myles H.
Quail, in charge of prizes; Harvey
Gram, stock exchange mock session;
William w. Jones, dinner; John
Hoffman, golf; Bayne Marbury, put
ting, and Monk" Ellis, horseshoe
pitching contest. Members will be
allowed to take the usual number of
guests to what promises to be the
clubs best outing.
Maryland Conclave Lauded.
Bankers in nearby Maryland today
were praising the annual conven-
tion of the Maryland Bankers AS
sociation at Atlantic City. One of
the finest addresses was delivered
by William "A. Irwin, associate edu-
cational director of the American
Institute of Banking, who declared
that industrial facilities in this
country are already geared to
wartime basis that the allies will
have to expand their buying in this
country to an enormous extent if the
war lasts long; and that great eco
nomic dangers lie ahead when the
war does end.
DR.. Irwin predicted competition in
world markets such as has never
been witnessed before. The totalitar-
ian nations, he noted, have already
grabbed vast markets in Czecho-
Slovakia, Poland, Denmark, Nor
way, Holland, Belgium. Britain and
France will run out of money, and
with vast surpluses in this country,
there will be intense political pres
sure here for lifting the cash-and-
carry requirements.
Dr. Irwin said the bankers might
just as well become resigned to Gov
ernment interference in business as
a permanent condition The history
of the United States, he said, shows
that once the Government takes
hold of private business in virtually
any field, it never lets 60, for ex-
amples, the Interstate Commerce
Commission, Federal Trade Com
mission and the Reconstruction
Finance Commission.
Lively Trading on Exchange.
Trading on the Washington Stock
Exchange today was unusually
heavy. prices working lower in some
issues.
The market opened with five con-
secutive 1OO-share sales in National
Mortgage & Investment preferred
at 37s, unchanged from last week.
Mergenthaler Linotype registered
10 and 30-share sales at IA, un-
changed. and 40 shares Of Railway
g. Electric preferred camc out at
1l212, ex dividend, against recent
sales at lis.
Washington Gas preferred moved
at 103, up from 1922. Potomac
Electric Power per cent preferred
changed hands, ex-dividend, at lis
and 1141a.
Financial District Notes.
The war market drew another
throng to the stock exchange Of
fees here today. There was less
excitement around the opening, and
trading was more orderly. Less