Evening star., 1942-03-23
D. {. Bank Deposits
At New High Mark,
Survey Indicates
Recent Goins Noted
Despite Bond Buying
And Tax Payments
BY EDWARD c. STONE.

highest point ever reCOrdeQ, COnSlQ-
erably above the sensational figure
reached on December 81. 194l, the
date of the controller of the cur
rency's last condition call. At that
time deposits aggregated $495, $685.
47827.
Based on limited, unofficial sur
vey made today, it is indicated that
total deposits may have recently
crossed the S5OO,0O0O00 mark If
this prediction is correct, another
modest advance has been added to
the gain of s75,813,588 registered
during 1941.
Interest in Washington bank de-
posts has been aroused by the pos
sibility. or probability. of a condi-
ton call from the controllers Of
flee in the near future. In many
other years such bank reports have
been requested around the end of
the first quarter.
Nine Consecutive Advances.
On the last nine calls, consecu-
tive increases in deposits have been
disclosed by the banks here. The
first call last year revealed a gain
of more than S17O00,000 over the
close of 1910: the June summary
brought out another increase OF
more than S17,OOO,O0O; the Septem-
ber reports showed an upturn OF
s26. .724,052, while the last three
months of the year witnessed an
advance of S18,086, 1863.
Bankers consider the surprising
upswing during 1941 largely due to
the heavy increase in population
here and the resulting notable in
creases in Government payrolls. An
increase in loans from the banks,
partly on account of the war, was
also helpful.
1t has been feared in the banking
district that the extensive purchases
of United States Defense bonds
would cut down bank deposits. To
date this has not been evident,
bankers state, adding that most of
the bonds appear to have been
bought out of current income rather
than through any appreciable with
OTdWdl Ol DdIlh uepOSIIS-
AS bankers have been particu-
larly active in urging the purchase
of Defense bonds in the greatest
possible amounts, some letdown in
deposits would not have been sur
prising. Any minor Withdrawals
for bond investments have been
quickly made up in other ways.
Tax Payments Also Watched.
Financiers have done a good deal
of speculating on the PROBABLE
effect of the first quarter income
tax installments on bank deposits.
Here. too, reports today indicate
they have caused no noticeable re-
duction in deposits.
One reason is that great many
income tax payers meet their tax
bills in four installments and do not
attempt to pay the full amount IN
the March collection.
Those who have borrowed money
with which to pay income taxes
have borrowed the amount needed
for the full year, but most OF that
money is still in the banks, all but
the frst-uuarter dues. Furthermore,
those who make loans for tax pay
ments are among the smaller de-
positors in the banks.
Wealthy people, who have extra
heavy taxes, bought tax-antlclpa-
ton notes. They are meeting their
tax obligations with these notes ana
are not drawing on their bank &C
counts. bank officials pointed out
today.
Rail Income Up Sharply.
Seventeen class l railroads, rep
resenting 64.4 per cent OF total
operating revenues in the Southern
district. had estimated operating
revenues in February of S43, ,267.237,
compared with s32,741,775 in Feb
ruary, 194l, or an increase OF 81
per cent.
Freight revenues in February
amounted to s35.O14952, compared
with s27,122144 in February, l94l'
or an increase of 291 per cent.
Passenger revenues of those roads
IN February totaled s5,805, ,749. COM
pared with 1892 $50 in February,
lq41, or an increase of I'll per cent.
S45,2OOOOO for Expansion.
Gross expenditures in 194l for ad-
ditions to plants and systems OF the
North American Co.'S consolidated
subsidiaries amounted to S45 200, 900,
compared with s25 100000 for the
same subsidiaries in 1910, the annual
report states.
Their construction programs at
the beginning of 1912 amounted TO
more than s65. 100000 OF this total
it is estimated that approximately
s46 100000 will be expended during
the current year and the balance
during 1943 .,
Industrial use of power in l94l
was % per cent greater than In 194o,
mainly because of enlarged manu-
featuring facilities and longer hours
of operations by industries engaged
in war production Commercial Gus
toners increased their use OF elec-
tricitv bv IL per cent and residential
bv 81 per cent during the year.
Financial District Comment.
Washington bankers have received
word that attendance at the grad
uate school of banking at Rutgers
University in June will be the largest
since the school was founded eight
wears ago. Attendance last year
totaled 643. about Is Capital bankers
being enrolled.
The Federal Reserve Board reports
that the Philadelphia Reserve Bank
has reduced the rediscount rate
from IL to l per cent, to bring 1t
in line with existing money market
rates in the other Reserve districts.
Virginia bankers were urged at a
meeting in Roanoke Saturday, to
help the farmer and agriculturallSt
to the same degree that bankers
have helped the businessman and
industrialist,' by G. Frank Lenz,
president of the Virginia Bankers
Association.
Today's Trading on Exchange.
Nine shares of Washington Rail-
way g. Electric preferred sold at
ILL., on the Washington Stock Ex-
ir