Evening star., 1950-03-13
Building Volumes Up
1917, Manufactures
Gain in Fifth District
BY Edword c. Stone


extraordinarily high construc-
tion volumes and a rising manu-
featuring output are the high
spots in the Fifth Reserve District
business situation, the Richmond
Reserve Bank said in the monthly
review out today.
In January, construction was 83
per cent higher than a year earlier.
The main drawback recently has
been a small decrease in retail
trade due to the coal strike.
Registrations of new automo-
biles and trucks have been i'm
pressive while bank debts have
held around the highest levels ever
recorded. The reports from 202
wholesale firms for January
showed decline of per cent
from the same 1949 month.
On February II, the Fifth Dis
trict bank loans were $28,812,OO0
ahead of February, 1949; total
security holdings were up $171,-
$4,000; demand deposits were
$91 .o26,000 higher than year ago
and savings deposits showed a gain
of $26,115, 900.
The report stated that retail
furniture sales in Washington in
January were 8 per cent ahead
of last year.
Savings Competition Keen.
j. R. Dunkerley, deputy man
ager of the ABA, told the Savings
and Mortgage Conference in New
York that this is a highly COM
petitive year for savings and
mortgages.
On December 81, savings and
commercial banks had gain OF
is per cent over the previous
year while savings and loan asso-
Citations reported an advance of
1873 per cent. Life insurance
companies also scored very large
gains in their savings.
While the banks of the country
hold the leadership in savings,
they will have to improve their
merchandising job to maintain
this standing, the ABA official de-
clared. Banks will have to spend
stable sums in advertising and
promotion. Some $40 million
building and loan associations
spend as much as $25 900 a year
In advertising, something no COM
mercial bank ever does.
Banks will also have to increase
their interest rates to meet COM
petition, he added.
Building Contracts Rise.
Contracts awarded for building
and heavy engineering works in
the Middle Atlantic States during
the first two months of this year
totaled s200,925, 900 an increase
Of SO per cent over the cor
responding period of last year,
1t was reported today by the F. w.
Dodge Corp.
The total volume Of contracts
awarded for construction in the
same area last year was $145,090,-
600. This years operations showed
a 103 per cent gain in privately
owned building and IS per cent
drop in publicly owned building.
Bank Bills Considered.
D. j. Needham. general counsel
OF the American Bankers Associa-
ton, has sent statement to
State secretaries showing the |.
congressional action taken re-
Gently on bills on interest to the
banks.
The FDIC bill has been reported
by the Senate Banking and Cur
rency Committee. A few charges
were made in the bill but the
$4,000 coverage of accounts re-
mains unchanged.
The Senate bill amending Sec
ton Goa of the National Bank
ruptcy Act has been sent to the
President for approval.
The subcommittee of the Sen
ate Banking Committee has
opened hearings on the banking
holding company bill. The ABA
supports the bill but has suggested
several amendments.
The House Banking Committee
also held hearings on the bill in
creasing the borrowing authority
of the Commodity Credit Corp. by
81 billion. FHA Title I insurance
terminated on February %.
Installment Accounts Grow.
The Federal Reserve Board re-
ports that installment accounts
at department stores in January
were 20 per cent larger than on
January 81, 1949.
State and municipal financing
In February totaled $546, ,400,9
compared with $2o3, ,674.173 in
February year ago, the Daily
Bond Buyer reports.
Business Week believes the syn
thetic rubber industry will remain
in Government hands for another
three to five years. at least.
Pan American World Airways
will start the new air parcel post
service between Japan and the
United States on March II.
Hecht Common at New Peak.
Hecht common reached a new
high for 1850 of 1914 on the
Washington Exchange today, 100
shares changing hands.
Capital Transit came out at
2812, moved up an eighth and
closed at 281a, sales reaching ITO
shares. The final bid, ex-divi-