Evening star., 1941-07-24
Payroll Deductions
For Defense Bonds
Urged on Banks
Voluntary System for Use
Of Members Originated
By Association
BY HAROLD b. ROGERS.

BY HAROLD B. ROGERS.
A voluntary payroll deduction
plan for purchase of Defense saw
ings bonds today was recommended
to all Washington banks for use
by their employees.
Originated by the Public Rela-
tions Council of the American Bank
ers Association, copies of the plan
were sent to the District Bankers
Association, whose secretary, Don
A. Larson, is distributing them to-
day to all members of the local as
sociation.
Briefly the proposal calls for pc
riodic deduction of an agreed sum
from the pay roll. The plan also is
recommended for use by customers
of banks who may wish to propose
1t for their own employees.
In a letter making public the
proposal William T. Wilson, direC-
tor of the Public Relations Council
of the A. B. A said it was being
submitted to all State association
presidents. secretaries. Financial
Advertisers Association officers, and
A. I. B. executive councilmen.
Simple Plan Worked Out.
"Pay roll deduction plans will be-
come an increasingly important
factor in the Defense bond pro-
gram" states his letter. Bankers
can do much to promote such plans,
first by installing them in their
own organizations, and secondly,
by encouraging and assisting their
customers to do likewise.
The A. B. A has received nu-
merous requests from member banks
for pay roll deduction systems, and
with the hope OF being helpful We
have worked out simple plan
which is similar to those used by
the Federal Reserve System and by
many banks and large corporations.
We hope that it will be helpful in
suggesting procedures which may be
adapted to banks and recommended
to bank customers for application
to their own personnel"
All 81 member banks of the Dis
trict Bankers Association already
ere qualified as issuing agents for
the Defense savings bonds as of
July 2. The local. banks had sold
up to June l a total of S4618000
of the E F and G bonds to 3,7l7
persons. according to latest figures |
available at the District Bankers !
Association.
Several business houses in Wash |
tngton already have put into effect |
payroll deduction plans of one kind !
or another for defense bonds, it was !
learned.
Deductions in Mutiples of 25c.
The system recommended by the
A. B. A. the employe authorizes a
deduction from his salary each pay
day of an amount in multiple OF
25 cents, but not less than rs cents.
Defense saving bonds are issued by
and are direct obligations OF the
United States Government it is
explained. They are issued in de-
nominations of S25. $50, 500, $500,
and $1,000, which are their maturity
values.
Explaining further details of the
proposed plans. the A. B. A. also
submitted a blank form of appllCa-
ton to be filled out by employees.
Recommending the plan, the
statement sent to banks here today
saws. in part: Payroll deductions
will be set up on the books OF your
bank or company in an account TO
be designated as Employees Sub
scriptions to Defense Savings Bonds.
Such funds will be used by tyour
bank or company only for the pur-
chase of Defense savings bonds on
behalf of the employees. AS no in
terest is earned on these funds, no
interest will be paid thereon while
the purchase price of bond is
being accumulated.
Each month (your bank or COM
pany) will arrange to purchase
bonds for those employees whose de-
ductions permit the purchase OF a
bond in the denominations author
lied. and to have such bonds reg
istered in the name or names re-
quested,
when an employe leaves the
service of your bank or company,
the pay roll deduction authorization
will be automatically Cancelled ana
any amount to the credit Of the
EMPLOYEES account will be refunded
Merger Plans Watched.
Reports from New York that ne
eotiations were under way for a
merger of the two big stock eX-
change firms of Merrill Lynch, E. A.
Pierce e. Cassatt, and Fenner IL
Beane. both of which have local
Offices in Washington stirred much
interest in the financial district to-
day.
No information was Forthcoming,
however, from either of the local
houses here concerning the proposed
merger. There have been uncon-
firned rumors on the street Tor
several DAYS that some such con-
solidation might be under way.
Merrill Lynch, E, A, Pierce q
Cassatt are located at 729 Fifteenth
street NV, and Fenner 81 Beane
are at BIS Fifteenth street NV.
MARYLAND Home Loans Increase
Home loans in Maryland totallng
3l83 and amounting to S1l955 1866
were made during the first SIX
months of 194l by the insured saw
ings and loan associations in that
State. Oscar r. KreutZ, general
manager of the Federal Savings and
Loan Insurance Corp, reported to-
day. In the same period of 1910
there were 1896 loans amounting
to S8,225, ,286.
At the close of the first half OF
the present year the associations
had home mortgage loans on their
books totaling s42,933000 as COM
pared with s31,637,000 on June 30.
1910.
The public placed s7,42l,408 in
Savings in these locally owned. mu-
tual thrift and home-financing in
stitutions in the opening six
months of 1941. bringing to s34,-
418OOO the total thrift funds in
trusted to the associations on June