Evening star., 1942-06-08
Bank Earnings Show
Sharp Yearly Gain,
Survey DiscIoses
Interest on Deposits
Dips, but All Other
Expenses Advance
By EDWARD c. STONE.

1891 were ll1kllCl Glldli III oliy SeA
Of deposit insurance, the Federal
Deposit Insurance Corp. announced
today.
Gross earnings amounted to ST.
f30,OOO000, which exceeded by $99,-
100000 the previous high level
reached in 1910. The increase in
gross earnings was partially offset
BY an increase of s7l 100000 in cur
rent operating expenses. so that
net earnings increased by only $685.
100000 during the year.
The increase In gross earnings
Is attributed chiefly to an increase
of $79,000,000 in the amount OF
income received from loans, reflect
ing the expansion of loans which
was accompanied the increase in
industrial output resulting from the
defense and war programs. The
average rate of income received on
loans during 194l declined to a
new low of 4.27 per cent.
Net profits before dividends in
creased by $4,000 900 during 194l
toa total of S455, 100000. About one
hAlf of the increase was due to
lsrger net earnings, the balance
I'd the reduction of $4,000, 900 in net
charge-offs.
u Interest on Deposits Drops.
All items of expenses increased
except interest paid. Interest paid
oh time and savings deposits de-
chned in 1941 for the seventh con-
secutive year and averaged 100
Der cent of average time and saw
iigs deposits. The amount of taxes
peid increased by $31 900, or 25
per cent.
,iInterest and dividends on securi-
ties increased by 100000 during
f941. This may be attributed to the
increase in the banks holdings OF
obligations of the United States
Government, since the rate of in
tsrest received on securities declined
for the fourth consecutive year and
averaged 1875 per cent.
t5Common and preferred cash divi-
dknds and interest paid on capital
amounted to 1884 100000 in 1941. as
compared with S237.000,O00 in 1910
the amount of dividends paid or
common capital in 1941 increased
for the seventh consecutive year tc
total of 1924 100000; the rate OF
dividends on common capital showed
an increase for the fourth consecu-
tive year and averaged $50 per
cent.
Baber Addresses Bankers.
Julian T Baber of Washington
one of the head officials in the
Secret Service. was to be one of
the headline speakers at the an
nual convention of the American
Institute of Banking, which opened
In New Orleans today He was to
speak on "Counteracting the Coun-
terfeiter'
Mr.. Baber has addressed many
banking organizations on this sub
iect and is one of the Nations lead
ing authorities on money. Next to
the protection of the President of
the United States, the most impor-
tant responsibility of the Secret
Service Is suppression of counter
feiting of the currency.
ID. c. Furniture Sales Climb.
Furniture sales in seven leading
Washington stores in April were Al
per cent ahead of the same month
year ago, the Federal Reserve
Bank of Richmond announces, and
in the first four months of this
year ran SO per cent ahead of the
like 1941 period.
Sales in Maryland were up 81 per
cent in April over last year and %
per cent in the four months. In
Virginia sales were per cent higher
In April and 18 per cent in the
four months.
The average gain of 40 stores in
the fifth district in April was 81
per cent and % per cent in the four
months, the report showed.
Exchange Firm 10 Years Old.
Orvis Bros, New York Stock Ex-
change firm with Offices in the
Woodward Building, is celebrating
itE70th birthday anniversary today.
One of the oldest stock and COM
modify houses in the country, the
firm has passed through many i'm
portant periods in the country's
financial history, surviving all panics
and depressions.
This is one of the few firms which
has remained under the manage
ment of the same family during
seven decades. The members of the
Orvis family are proud to have re-
tanned control during such a long
period.
Charles B. Quarles, manager of
the Washington office, received many
congratulations today on the firm S
long record.
Bond Sales Close to Quota.
The Treasury report on War
bonds sales in May shows that the
District of Columbia came within
964 per cent of the goal. Sales
reached s5,958,000, the quota being
S6.179,000.
Washington banks, building and
loan associations and investment
houses have redoubled their efforts
to meet the June quota which is
larger than the figure set for May
Unofficial reports indicate very
heavy sales.
Santelmann on Committee.
r. w. Santelmann, secretary of
the Metropolis Building Association
received word today from Fermor
S. Cannon, president of the United
States Savings and Loan League,
of his appointment to the leagues
1942 State Section Committee.
Chief responsibility of this group
Is to study matters which apply only
to the tate-chartered savings,
building and loan associations. A
majority of the institutions are still
In this category.
d. C. Exchange Turns Active.
One of the most active sessions
of the Washington Stock Exchange
In weeks opened today with AZ
shares of Washington Gas Light
common selling at IS, up "a.
Capital Traction IS registered g
$4,000 sale, one of the largest on
record, at los. unchanged.
Mergenthaler sold at 80. and