Evening star., 1943-11-01
Business Accounts
Leading Factor in
Demand Deposits
Ry EDWARD c. STONE

deposits IN the banks, other thar
Government and interbank deposits
while individuals hold about IS PEI
cent of the total, the Federal Re.
serve Bulletin announces in sum.
ming up the ownership of all bank
deposits.
Estimates indicate that demanc
deposits belonging to businesses. in.
corporated and mincorporated
amounted to $4,000 100000 at the
end of July, while demand deposits
of individuals totaled about Sl4 ,000,-
100000, the survey shows.
A large part of the increase il
business deposits has been in large
accounts, although Small-sized bal
ances have also shown large per-
centage increases. The total amount
of deposits held in very large ac-
counts of individuals has apparently
decreased somewhat, the bulletin
states
Individuals Hold Cash.
Cash holdings of individuals. in
eludmg currency and time deposits
substantially exceed those of busi-
nesses, the survey shows.
Individual cash holdings. when
currency and time deposits are taken
into account along with demanc
deposits, will also be unprecedent-
edly large by the wars end. even
those personal demand deposits are
smaller than previously supposed
the review indicates. Both consumer
and business expenditures can be
financed out of these funds alone if
individuals make these expenditure
decisions.
The survey helps explain. the bull
ietin adds the large volume of cor
poration subscriptions to new Treas
ury issues in the War Loan Drives.
How Funds Are Divided.
Estimates of deposit ownership by
size of accounts reveals the over
Whelmlng predomlnance Of business
accounts in very large deposits and
the relative greater importance Of
personal deposits IN small accounts,
the review continues.
Turning to deposit ownership at
large and small banks. the survey
tays business deposits dominate the
picture at very large banks At
smaller banks. A much larger pOr
ton of total deposits belongs to in
dlviduals
Rust Nominated for Director.
H L. Rust. president of the H. L.
Rust Co, real estate firm, has been
nominated for a Glass B director OF
the Federal Reserve Bank Of Rich
mond. it Was announced today by
Chairman Robert LasSlter. He has
been named to succeed John H.
Hanna, chairman of the board Of the
Capital Transit Co. whose term eX-
pires on December 81.
A native of Washington. M. Rust
entered the real estate business
founded by his father, serving as
treasurer from 1919 to 1888 when he
took his present position. He Is
treasurer of the Episcopal Diocese of
Washington, was chairman Of the
Community Chest in 1884. chairman
for two years Of the District Com
mittee for War Savings and chair
man for the District of the Second
War Loan Drive.
He is a director Of the Chesapeake
& Potomac Telephone Co. Potomac
Electric Power Co. and the Security
Storage Co.
James c. BrasWcll Rock Mount,
n. c., was nominated as a Glass A
director to succeed himself.
Potter Joins Investment Firm.
Announcement was made today by
Y. E. Booker, Washington partner
IN Alexander Brown & Sons, that
A c. Potter has become associated
with the investment firm in the
New York office. Ny Potter was
formerly president Of Burns, Potter
& Co. of Omaha and for the past
two years has been in Washington
serving as a special assistant to the
UnderSecretary of War.
The next hearing before the
Securities and Exchange COmmls-
SION relative TO the liquidation OF
the North American Co will take
place IN Philadelphia on Novcm-
Der 9 it was announced today.
Several other similar cases will be
taken up al the same time.
Holders of National Dairy Prod
ucts serial dc5cn urcs. due IN 1916
and l947, have been notified thai,
the company has decided to redeem
and pay them of on December /.
l943. There are many holders OF
these bonds i'll the Capital
Exchanges to Close Tomorrow.
AS the New York Stock Exchange
Will be closed tomorrow on account
of election day in New York. the
Board of Governors of the Washing
ton Stock Exchange voted to omit
tomorroW's S session All the banks
and building and loan associations
will be open as usual investment
firms will maintain limited staffs.
Trader III Rayrons Weekly
thinks selling for tex purposes may
soon m2ko Is anpcoysncc il !hc
stock market and cause some il
regularly. but n g"Uc al II" ls M
pressed with the technical action of
the market. Tears Of Stiflcr taxes
or independent action by Russia ap-
pear to have been pretty we'll
quieted, he says.
John A Reilly. president of the
Second National Bank and chairman
of the Third War Loan drive, re-
ceived many phone calls today on
the occasion of birthday anniver-
sary. At 40 he is one of the young
est bank presidents in the city.
Garfinckcl at New Peak.
Trading on the Washington Stock
Exchange uShcIed in November with
unusual activity. GarfnCkel COM
mon reached a new high for the year
when a small lot solo at 15l2. The
low for the year is 8 ,.
Washington Gas common was
strong at 221,. Washington Ga S5
preferred reached a new l943 high
mark today. moving at l06 8. eX-
dividend. Washington Gas $3.50
roreferred reoictora1 11O cbora