Evening star., 1942-10-29
Capital Financiers
Awaiting Test Of
Ration Banking
Best Ways Of Clearing
Coupons Being Sought
By Actual Practice
Ry EDWARD C. STONE.

program now being tested in upper
New York State which is expected
to furnish the workable details for
Nationwide adoption by the banks
in the near future The banks are
cooperating with the ONCE of
Price Administration in efforts to
develop the best methods of clear
ing these ration coupons.
All businessmen in the New
York test area who handle sugar
and all dealers above the retail
level who handle gasoline are ap-
plying at the banks for ration
banking accounts" The object of
the new system is to relieve War
Price and Rationing Boards of the
burden of handling millions of
ration stamps. coupons and Ger
tiflcates, which interferes with
their administrative duties and
makes an accurate check of ra-
tioning transactions difficult
Ration credits are to be trans
ferred through the banks, much as
money is exchanged through check
ing accounts. Ration banking is
expected to be more simple and
effective than the existing system
The banks will handle this paper
with the same equipment and in
much the same way as checking
accounts. "Overdrafts" are not to
be permitted
When the system is adopted ma
tionally, the banks are to be paid
for handling the ration coupons,
this being considered a very valu-
able service for the war effort. The
added revenues in these days of
limited bank loans will be highly
appreciated. Predictions are now
being made by the American
Bankers Association that the banks
will take up ration banking on a
broad scale early in l943.
Sharp Trade Gains Noted.
The Federal Reserve Board re-
ports some very sharp trade gains
in many cities in the first nine
months of the year, among the
best being 81 per cent upswing in
Charleston, S. c., and a 80 per
cent store sale pickup at Norfolk.
In the st. Louis area, Fort Smith,
Ark, reported IS per cent gain and
Little Rock 23 The highest retail
sales gain in the country, a jump
of 50 per cent, was made by VAL
lejo and Napa in the San Fran
cisco area. Long Beach trade was
up 80 per cent, Oakland and Berk-
eley, % per cent and San Diego, 80
per cent.
Trade in Seattle was 30 per cent
better than last year, Macon, Ga,
led the Southern cities with a %
per cent advance, l per cent bet
ter than the % per cent rise in
Washington.
Bank Superintendent Resigns.
William r. White, superintendent
of banks in New York State, has
resigned his position and been ap-
pointed vice president of the
Guaranty Trust Co. of New York.
He will serve AS a general bank
ing officer for the area that in
cludes New York State New Jersey,
Delaware, Maryland and the Dis
trict OF Columbia, it was announced
today.
He has been very active as a
State superintendent of banks and
IN great demand as a speaker be-
fore banking organizations.
Richmond Bank Rate Cut.
Hugh Leach, president of the
Federal Reserve Bank of Richmond,
notified Washington banks today
that effective Immediately the
banks rate against advances to
member banks secured by direct or
fully guaranteed United States Gov
eminent securities, which have a
year or less to run to call or ma
turity date, has been reduced from
! per cent to y per cent.
The San Francisco Bank has taken
similar action following similar rate
reductions earlier in the week by
four other Federal Reserve Banks.
Hanes Predicts Sales Tax.
A Federal sales tax is inevitable
In view of the substantial taxes
which the Revenue Act of 1912 inn
poses on both corporations and in
dividuals, John w. Hanes. former
Undersecretary of the Treasury, said
In New York last night.
With the new tax law taking 75rs
OF corporate income, the only
revenue source left is excise taxes
which is merely another name for
a sales tax, Mr. Hanes said. He
advocated a graduated retail sales
tax with no exemptions.
Banks Report Bond Sales.
Washington banks reported their
bond sales yesterday to Kate Smith
headquarters and helped swell the
total which was estimated as ST ,051,-
955, the largest sale being 100000
for an estate. Bankers said today
that many of their patrons who
have beens purchasing bonds every
month, got them yesterday in order
that they might be applied to the
Kate Smith record. These sales
gave the total big push.
Friends Regret Dolph's Death.
John Dolph, who died early today
at the age of SO years, will be
greatly missed in both banking and
insurance circles. He was con-
nected with the Metropolitan Life
Insurance Co. as manager or agent
for more than 43 years and a past
president of the District Life Un-
derwriters' Association, rarely miss
Ing the monthly luncheons.
Mr.. Dolph was a bank director
for many years and as such never
missed convention OF the District
Bankers Association. Although HI
had retired from business, he re-
tanned his interest in a host of diff
ferent organizations.
~ Record Sale on Exchange.
The largest sale In number Of
shares on the Washington STOCK
Exchange this year was registered
today when 1000 shares of Nationa
Mortgage & Investment preferred
changed hands at ~, unchanged