Evening star., 1942-12-03
Wartime Coin Use
Causes Shortage Of
NickeIs and Pennies
Bunks Urged to Ship
Any Extra Supplies
To Richmond Reserve
By EDWARD G. STONE


a real shortage in pennies, nickel.
and other small change" Wash.
ington banks and others in the 5th
district were requested today to SEND
all the minor coin they can spare
to the Richmond Reserve Bank.
The Reserve Bank has been ad.
vised by the Treasury Department
that no additional pennies of the
present metal content can be fur
nished from the mints and that
authority to coin pennies of the
new metal content is now pending
in Congress.
Hugh Leach, president of the
Richmond bank, said the bank had
also been advised that shipments
Of nickels to Federal Reserve Banks
must be curtailed for the present
but that shipments will be made as
rapidly as the limited production at
the mints will permit.
In order to effect better distribu-
ton of minor coin. in the present
emergency, all banking institutions
in this district have been requestedd
to ship all nickels and pennies in
excess of absolute needs to the
Richmond Reserve Bank or to the
Baltimore or Charlotte branches.
The Nations money is made at
the Bureau Of Printing and Engrav-
ing here, and at the mints in Phila-
delphia, Denver and San Francisco
The demand has gone far ahead OF
the supply of small coins because
OF abnormal war conditions.
For seven months the mints pro-
duced no nickels at all. In October
they began producing new nickels
containing IS per cent silver, 8 per
cent manganese and 56 per cent
copper. Penny production has beer
cut sharply because the old penny
contains 95 per cent copper.
Savings Interest Cut Further.
Interest paid on savings was again
lowered by several Washington
banks on December !. Others are
considering similar action before
January l. bank officials said today
A survey indicates that majority OF
the banks are now paying per cent
on savings accounts not exceeding
$1,000, and that in many instances
4 per cent per annum is being paid
on the excess in balances over 81 ,0OC
and not over SIS 000
A few of the banks are continuing
the 2 per cent rate on deposits up tt
$1,000 and per cent on larger
amounts. Other banks will pay only
u per cent on savings accounts o1
more than s2,500.
In some cases no interest at all /.
being paid on balances of less thar
500. and on that portion in exces.
Of $4,000. Interest is allowed, &C
cording to rate schedules, for each
entire calendar quarter during
which funds are continued on de-
post, computed from the first day OF
the calendar quarter succeeding the
deposit
Interest on savings is credited to
the depositor's account twice a year
the dates varying considerably. Of
f1cers In banks making interest re-
ductions say the action was taken
with deep regret. Continued low
interest on bank loans and inability
to keep all their money at work
forced the recent cuts. bankers as
sert Government bonds. in which
the banks have very large holdings,
return very modest yield
Victory Fund Drive Booming.
Winslow B. Van Devanter, chair
man Of the Washington committee
pushing the Treasury's special Vic
tory Fund drive, announced TODAY
that the campaign was continuing
at high speed with very satisfactory
results.
Among yesterdays large buyers of
Victory 2l2s were two Capital in
surance concerns. the Continental
Life Insurance Co, Inc, which took
s350000 and the Equitable Life In
surance Co., which bought $4,000
From Baltimore came a report
That nearly $39,000000 bonds had
been taken in Maryland in the first
two days Of drive, of which s37.-
$4,000 was for Baltimore subscrip-
tions. Maryland's unoffcial quota
for December is S90,00O,O00.
The Baltimore report added that
20 counties in West Virginia had
taken $505 500 bonds in the two days
Traction IS at 1855.
Capital Traction SIS figured in 6
$500 transfer at 1855 on the Wash
ington Stock Exchange today, un.
changed from other recent sales
This bond has been the most active
senior issue on the exchange so far
this year, more than $l43 900 hav-
Ing changed ownership. The closing
bid today was 1854, with none Of
fered.
First sale is still awaited in the
although the bid has been raised tc
l1OR.
Capital Transit stock was quoted
ex-dividend today, asia bid and 2e
asked.
Bankers Again on Council.
Robert l.. Flather, American
Security e. Trust Co., and Eliot H
Thomson, Washington Loan Il Trust
Co., have been reelected to the
Advisory Council Of the Financia
Advertisers Association, 1t was an
nounced here today. Both have beer
leaders in the association for years
DC. Accountants Honored.
Nine Washington accountants
have recently been accorded com
mittee and other. honors by the
American Institute of Accountants
1t was announced today. They in
clude Comdr. Norman l.. McLaren
Col. Andrew Stewart. Maj. Ralph 3
Stratford. Eric L. Kohler, Wayne
Kendrick, James A. Councillor, Henry
S. Owens, L. o. Manley and JOSEPH
K. Meyer.
Messrs. Kendrick, Councillor anc
Owens are past presidents of thu
District of Columbia Institute o.