Evening star., 1941-08-25
Capital Bank Loans
Mounting Steadily,
Survey DiscIoses
Demand for Funds
Is Reported Best
In Recent Years
BY EDWARD C. STONE.


Washington banks are increasing
their loans steadily and in some
Instances "are all loaned up" it
was learned in the financial district
today as the result of an unofficial
survey
"All loaned up means that these
banks have made all the big loans
that they care to, although they are
continuing to negotiate plenty OF
smaller loans.
The present bank loan situation
Is considered highly favorable. The
banks have been anxious to loan
more and more money ever since
the bank holiday back in 1888. They
have had more money than they
could use to good advantage. At
times some have even refused new
savings deposits.
In addition to commercial loans
to merchants and other old-time
borrowers, officials have found many
other ways to put out funds to
increase income. No bank can ever
loan all its funds. as ample reserves
must always be kept on hand to
meet all requirements
If the demand for loans continues
to grow some banks in the Fifth
District will again be borrowing
from the Richmond Reserve Bank.
This is another healthy sign,
officials assert.
are also continuing their long move
upward. Deposits in several banks
are now the highest they have ever
been, it was said in the financial
district today.
Colleges Buy Common Stocks.
While common stocks have been
declining in popularity with the
general public, as the reduced trad
ing volume of the past few years
indicates, many colleges and univer-
stiles have added substantially to
their investments in equities. Eight
institutions, says the Exchange
Magazine, which have endowments
In excess of s15,00O,000 each have,
since 1886, increased their common
stock holdings from 159 per cent
TO 29.3 per cent of their total port
folios.
This is brought out in a survey
of the endowment investments of
120 leading colleges and universities
which has been made by the Amer
lean Council on Education Studies.
The institutions covered have an
aggregate of s1.263, ,653,0 900 of endow-
ment funds. Of this amount, s3O2,-
244000, or 241 per cent, is invested
In common stocks.
The colleges with fewer funds are
tagging behind the more heavily
endowed institutions in the trend
toward equity investments. Among
1S institutions with endowment
funds of less than S2,000,00O, equities
made up only 15.7 per cent.
Prices High on Exchange.
Z Approach of Labor Day finds
securities on the Washington Stock
Exchange near their highest prices
of the year.
Washington Gas Light IS are the
highest priced bonds on the list,
selling lately at 1882 to yield 3.5
per cent. The highest yield, how
ever, is on Anacostia & Potomac
River r. R. first IS. Selling at 1o71a,
they return 385 per cent Every
bond on the board is now selling
well above par
In the public utility division, Poto-
mac Electric Power 6 per cent pre-
ferred, at 1852. is at the high for
the year, yielding SIS per cent.
Potomac Electric 51a per cent pre-
ferred, selling at 1852, is also at the
years top price, yielding 473 per
cent
Several banks stocks have sold
at only one price so far in 1941,
including Liberty National at ITS,
Riggs National preferred at 102,
National Bank of Washington at lib,
and National Savings & Trust at
204. Other bank quotations have
been firm. Prices in the miscel-
laneous list also reflect the same
stability.
d. c. Men on Bank Program.
D. J. Needham, general counsel of
the American Bankers Association,
and Arthur J. Linn. controller of the
Hamilton National Bank, will be
among the speakers at the third
Tennessee Bankers Conference in
Knoxville September 8-12, accord
ing to the full program just re-
ceived here
Mr.. Needham will give two ad-
dresses on Federal Legislation" and
Mr.. Linn will speak on Economics
and Purchasing" and Economics in
Bank Operations"
Mr.. Linn is former president of
the National Association of Bank
Auditors and Controllers. Mr. Need
ham has been the legal head of the
A. B. A. for many years and has
addressed bankers associations all
over the United States.
Other speakers include Paul Bar
ringer, Guaranty Trust; A. G..
Brown. A. B. A. credit expert on
agriculture: Pollard Turman. At
lanta Reserve Bank, and Cecil Will
son, United States Department Of
Labor. Alexander Wall. Robert
Morris Associates, is also on the
program.
Credit Control Rules Arrive.
Washington banks today had the
complete draft of the new credit
control regulations put out by the
Federal Reserve Board While most
of the rules go into effect next week,
some do not take effect until later.
The requirement that the mini
mum down payment be not less
than S. is not effective until the
first of next year. The requirement
as renewals and revision becomes
effective November l, as does the
rule affecting additions to outstand-
ing credit.
Bankers in the capital praise the
rule requiring down payment OF
one-third on automobiles and a
limit on the loans to Is months. II
buyers of automobiles cannot pay
for them within IS months. they
>,cnf xof fo L,,1xy norc of oil ono