Evening Star Newspaper, February 14, 1926, Page 93

WILL BEG FADDEN BANKING BILL ’ IN TUESDAY Every Angle of What Is Called Most Important Piece . 'The most important piece of finan- | cfal legislation in the Jast decade McFadden the National Bank sct and the eral ings mittee currency whether Senate pasged by lust consist an and sey seriby extre by of Financial Legislation in Decade Fully and Clearly Discussed for Layman. BY CHAS. P. SHAEFFE perfor; not be C surf ks the amending | ed- en hear- b bill, H. R. 2, Reserve act, will be next Tuesday before of the Senate banking committee to determir ported to the|tem form was | from ¢ on Februa 4, | going the subcommitte keen ¢ Pepper of Penn- | larges of New e Virginia. | by Just | 860 ers o Members of 001 banks ed ress fon . phri the deri ern b s ing more bus and ber W oeer come ral Rexery 19,000 trust have show = mak founc Syste be m national en Re pe formi able banks are n It Reser that member are under the Government tion with N rve system members would be Chanzes Declared Needed. ks ndu: by mod- The The bunk - { House o States are | swer ¢ trend their laws | lay the he tional bank the numt hanks 4 nur and due to the 1tional banks into order to serve their old together the built up. I Reserve act was in ( ess In 1913 pparent th e =ystem fou n voluntary mal banks | the fu system come, many banks. ussion ened Fadder ta wnnt of fixed cap : to the | petitiv and w size of each | tional hanks have to be less th is Nation a bank | laws ¢ cepted the ir 1 | State the wisdc Congress in | ‘exist 18 the National banks the chief | tapmin Jation of the Federal Reserve 'm | banks cannot leave the sys- | vill and they must continue to embers as long as they remain On’ the o .| sorve come i and ko &t v State hanks of the Federal < in direct com tional banks and per ng many tunctions, both prof and sy ie that National mitted to perform. vhether a Federal | A n de up of voluntary | to con: « effective us one | the St is composed of the compulsory | into a hip of National banks, which | direct uthority of the Federal | gether and can be required to | mit a volunt ) State commed { termin; a trus rvight ve charte come tior live & is @ g SAY “BAYER ASPIRIN"— proved safe by millio Reserve syst | New York outside try doubtedly hasten National ch: ons will be that the control by | Federal Reserve system will be greatly weak- that a State bank can do. | believe permit | jection to this because (¢ 1 banks simply of the Iederal State banks can- m as memb the forced to do. ‘hanges During Ten Yea ing the past converting 10 vears National into te banks hd | have tuken over $2,000,000.000 of as. 1 banking sys. £ conversion other is still on. Recently, because of the ompetition of State banks, the t Nat 1 bank in the State of of New York City State hank took tional bank her large national millions of dol 3 see what Con McFadden bill er they shall National system or convert » hanks. I several vears il bankers in every part of the v have been asking Congress to order that they may ith State ut of the Nati nd the e syst werting into 1000 out o . Many with many waiting to will do with the they decide whet pcoming State 1 pride in being they realize » else that National e the chief rellance of the Reserve which they to perpetuite for the benefit of and commerce. MeFadden bill as passed by the of Representatives is the an »f that branch of Con; to request. This week they will elr before the Senate. If have bankers and ANy o the Senate adopts the McFadden bill ture of the Natlonal banking 1 s assured for some time to but if the Senate fails to act large Nuational banks will un- to surrender their ters and become State The result of these conver- the Government of the Federal Chief Aims pri n bill Bill. vipal features of the © intended to place the ional banks upon a plain of com- e equality with State banks, hile they will not permit a na- bunk to do all of the things neverth hese proposed amendments are ctory to the national banks. jal bank charters now permit i to exist for 99 years. As the i many of the States permit banks and trust companies to for un indefinite or an_inde- pate time, the national bunks that their charters should them to exist for an inde- time in order to carry on t- business, which they are now | permitted to do by the Federal re act. There cannot be any ob- gress has to terminate the existence of national banks at any time, and their rs can be forfeited if they he- insolvent. In other words, na- want the right to long as they behave them nd obey the law. ional bank is permitted now solidate with a State bank. but ate bank must first be turned national bank, which is an in- way of bringing the two to- The McFadden bill will per- national bank to consolidate di- ns over 25 years. THE SUNDAY STAR, WASHINGTON, D. O, FEBRUARY 14, 1926—PART 6. | rectly with a State bank, thus doing | away with useless red tape. “The bill further proposes to give na- tional banks the right to organize separate corporations to carry on a safe deposit business in connection with the banking business and to set | aside not more than 15 per cent of | their capital and surplus for that pur- | | pose. This is desired in order to [ limit the lability of the bank to the | | amount of capital subscribed to the safe deposit corporation. At present the entire capital, surplus and undi- vided profits of & national bank doing a safe deposit business is lluble for| any damages that may be awarded in a suit brought against the bank for anything in the way of an ac- cldent that may happen in the safe | deposit department, thus depriving the other depositors of their share of the protdgtion in the capital, sur- plus and Wofits. Extends Loan Periods. National banks are permitted now to lend part of their capital and part of their time despt on the security | of real estate loans for & period of one veur. The bill extends the time for which loans mdy be made to five vears, permits 25 per cent of capital and surplus or one-bhalf of savings de posits to be loaned in that way pro vided loans be secured by a first| mortgage for an amount not greater| than 60 per cent of the value of the property. The savings deposits in national banks are not different from the sav ings deposits in State banks, trust ompanies and savings banks. 1€ it} is sate for State banks to lend their| Ings deposits on the security of \l extate then there can be no ques st the safety of permitting| banks to make the Same | kind of loans out of their savings de posits. There is a great demand now for money for bLuilding purposes in| the cities and loans for that purpose, judiciously made, would be helpful in building up the community Then, too, a three-yewr® loun or a five-year logn is more liquid than a one-year loan and can be sold more readily because persons with money to invest rarely want to put it out for only one year. For many years national banks have been using their surplus funds in the purchase of what are known as Investment securitles, such as bonds and debentures, that are secur- ed and have a ready market. It is proposed to legalize that practice, but give the controller of the currency the power to define investment se- curities to the end that undesirable investments which have & lmited market shall be excluded. There is a further provision that a bank may purchase an amount not greater than 5 per cent of its capital and surplus of securities issued by one debtor, which will be in harmony with other provisions of the law limiting the amount of money that can be loaned to one person. New Property Rule Sought. At the present time if a national bank desires to buy additional prop- erty for future use it must improve that property and add it to its bank- ing quarters at once. Many banks looking ahead desire to secure avall- able property near the bank for future expansion of business, but they do not want to be forced to spend the money to improve it at once. The proposed law will permit them to do that. Another provision of the law legalizes the practice of increasing capital stock by the declaration of stock dividends and it provides the further regulation of the amount of surplus, which must be maintained | when such stock dividends ure de- clared. Reports of condition made to the controller of the currency must be ce ified now by the presi- dent or cashier. Very often such re- ports are called for when these offi- cers are not In the bank, therefore it is proposed to permit such reports to be certified by a junior officer. | poration, Section 5200 of the Revised DOES NOT AFFECT THE HEART ~ Accept only “Bayer” package which contains proven directions. Handy “Bayer” boxes of 12 tablets Also bottles of 24 and 100 — Druggists. Violent Changes In Special Issues Feature in Stocks By the Associuted Press. NEW YORK. February 13.—Vio- lent fuctuations in special issues reflecting_the sharply contrasting nature of current news develop- ments, featured this week’s securi- ties market. The main body of stocks made little progress in either direction, although the average of 0 leading industrial issues at ned a new record high because the sensaMonal advances in neral Electric and American Can, two of the issues used in compiling the averag —_— e which regulates the amount that a national hank mav lend to or d count for one individual firm or cor- has been for a long time difficult of interpretation. Very often disputes have risen betw 1 the banker and the examiner a to what constitutes an excess loan. One of the provisions of the McFadden bill will elarify the language of section 5200 of th Revised Statutes so that the hankers, examiners and horrow- ers will know definitely how much money a national bank may lend both directly and indirectly its J and the different SRS 1t are subject t such or enlarge the arious commercial paper that sted by a national bank e the proposed I langnage of that sec plain that there will be no to sunds ing Another Vital Point. Another section of the bill permits a national bank to rediscount with its Federal Reserve bank paper that is eligible for rediscount up to the amount which it can discount law- ully for its customers on the theory that any paper which the act con- cedes safe for a natlonal bank to take should be uccepted by the Fed- eral Reserve bank to the same ex- tent that the national bank is per- mitted to take it Many national banks located in cities have left the national system because of the keen competition of State banks that are permitted by the laws of their State to have branches. The bill proposes to per- mit natlonal banks to establish branches in A national bank in a city with pulation 4f 25,000 to §0,000 may have one branch, cities with # population of from 50, 000 to 100,000 two branches, «nd in citfes with o population of 100,000 and over any number of branches 2! subject, howev. approval by the controlier of the 5 branch banking ing in its control of hands of I deposits in ing are under ause still in the Al D whereas the ate-wide branch bank- absentee control This question of permitting tional banks in cltles to branches has brought forward question of State-wide bran banking Wd it is necessar if Congress proposes to give national banks in citfes the relief they. de sire in this respect, to take a def nite and positive stand on the s ject of branch banking gen Therefore, another provision of th bill recites that State banks that are members of the Fede tem can retain the branches they have, but th establish any additional te-wide branches so long as they are mem- bers of the Federal Reserve system, but they will have the same rights with respect to city branches that natlonal banks enjoy. This question of State-wide branch banking has attracted more attention na- have the h ide cannot Gopuine When yvou see the “Bayer Cross” on tablets, you are getting the genuine Bayer Aspirin prescribed by physicians and / 5 . . Aspirin is the trade mark of Bayer Manufacture of Monoaceticacidester of- Salicylicacid Reserve sys- | among_ bankers than any other fea- ture of the banking business. Two- thirds of the States do not permit branch banking of any kind, there- fore neither National nor State bank members of the Federal Reserve sys- tem will be permitted to have branch- es either in the city or otherwise in those States, so that the question is | narrowed down to a policy to be pur- sued in one-third of the States. -In those States the National bankers are not asking for the privilege of con- ducting State-wide branches. They are satisfied to carry on their branch banking business witain the limics of the cities. But some State banks that are members of the Federal Reserve system resent the efforts to k a further extension of thelr State-wide branch_bank activities and the opposed to that part of the bill. ' ss has no power to regulate s of State banks unless such banks are members of the I Reserve system. In that vent the Federal Governmeyt, hav ing supreme power over the Federal Reserve system, can Set up any stundard or prescribe any rules or regulations it s fit for the con- duct of business by State bank mem bers of the system, because when such banks come into the system they put themselves under the con- trol to a certain extent of the Federal Government. Farly Passage Predicted. The opposition to the McFadden bill comes principally from certain State ‘hanks who want to enjoy all th benefits of the Federal Reserve without any limitation of harter or rights The Tiouse of Repr e sald that Conzress its power over the Federal Rese system to that extent and th are behind the Mcl“adden bill t that the Senate will ta w and that the bill ted into law at an Should it become a law many large national banks will definitely deter- mine to remain In the national bank system_and some State banks that were formerly natlonal banks will return, with a consequent strenkth- ening of both the national system and the Federal Rserve system system their Yo will arly BALTIMORE LIVE STOCK. BALTIMORE, February 13 (Spe- cial)—The live - cattle market rules steady to firm at the stock yard but eusy on the wharves. While there is little stock arriving by boat, stock- yard receipts have been ample for the demand prevailing, which is ce: tered on cattle of first grade quallf and very little demand for common to prdinary stock. Quotations today at Light Street Wharf Beef cattle, first quality to 10; common to medium, as to quality, 4 to 6; cows, fancy, 5 to 6; common to fair, 3 to 4; oxen, as to quality. 4 to 8 milk cows, choice to fancy head. 50.00 to 75.00 common to fa head, 30.00 to 50.00 ilves. veal chofce, poind,. 1415 to 15 ordinary to medium, 12 to 14; rough and common, & to 10; small culls, § to 10 - Sheep, choice. 7 to §; old bucks to 6; common. 3 to 4; lambs, Spring, choice, 15 to 16; fair to good, 13 to 14; common thin, & to 10 Hogs. straizht, 12 to 13; sows. 8 to 10; stags and bours, 5 to 73 lve pigs, 14to 15; shoats, 12 to 13 RATES ON BAR Sifi’ER, Vv YORK. February 13 [z excian dollars, 51 pound, 9 to 8; bulls choice o ‘The Rembrandt—Seven Rooms and $45.00 e, (8) pat Come and See Our | which will result in the resumption of | truck carrying of eggs the first part | of next week, but the demand prevail. BALTIMORE PRODUCE. BALTIMORE, February 13 (Spe- cial).—Receipts of cholce fat live poultry continues light on all lines, and as a result the market holds very firm and values generally are a shade higher. This is especially true of Winter chickens two pounds and under, which are scarce and sell reaaity at 40 a pound, while large, smootn young chickens bring 35, Leg- norns, 30, and e poor, thin stock sells fairly well at 25. Demand con- tinues good for modium to large old hens at 28 to 32, but small, poor stock and Leghorns will not bring more than 26 to 28. Old roosters firmer at 18 to 20, while caporis are scarce and wanted at 35 to 43 as to size. Demand for turkeys also good, es- pecially for medium sized hen tur- keys which will bring 52 and gobblers 50, but old toms will not bring over while poor and crooked breasts sell %0 to 35 as to quallty and condition. Market for ducks and geese also holds firm under light receipts at 25 to 35 for the former and 23 to 26 for the latter, although geese are not in much demand. Quinea fowl and pig- eons hold steady at last weeks values. The local market prefers live to dressed poultry at this time as a con- sequence capons is the only line that will bring a_premfum dressed over live, selling 35 to 48 as to quality and condition, but ull other lines bring more live than dressed While the snowstorm curtailed re- ceipts of native and nearby eggs the demand continues falrly actlve and eggs recovered the loss sustained the first_part of the week, closing today t 33 a dozen for firsts in free cases. tate roads are being cleared of snow, ing will no doubt keep prices about at today's level all of next week. The white potato market holds steady with little change from last week, supplies being ample for trade nts with general movement only at the high prices prevailing. No. 1 well graded stock sells $4.00 to $4.50 per hundred pounds, and $2.00 to $3.00 for No. 2 stock and culls, but careful grading is necessary to com- mand top values as zll mixed stock must be so0ld at No. The market for sweet potatoes and yams rules firmer under a good demand for fancy dry stock, which is the only kind that will bring top values of $4.50 to $5.60 barrel for the former ana $4.00 to $5.50 barrel for the latter; culls and No. 2 stock of both will not bring over $2.00 to $3.00 barrel; bushel ham- pers sell mostly Toe to $ as to quality and condition. Due to the snowstorm, receipts of native and nearby vegetables have heen curtafled to some extent and market holds firm at the following quotation Brussels sprouts, 20c and 30c quart; arrots, $3.00 to §5.00 hundred; kale $1.75 1o $1.85 barrel; onions, $3.50 to $3.25 hundred pounds: oysterplants, $7.00 and $£5.00 hundred: parsnips, 60c |to 75c basket; spinach, $1.50 to $2.00 barrel: savoy cabbage, 60c to Tbe bushel, and turnips, 20c to 85c basket. MARKETS UNSETTLED. CHICAGO, February 13 UP).—The hutter rkets during the week ed with all four butter markets weak and unsettled. Dealers were | foreing the gradually aceumulating | stocks on the market and buyers | were not_interested except for their need at Boca Raton (Florida) may be played ev%day in the year on three courses by Wm. S. Flynn and Donald Ross. Reasonable restriction assures congenial companionship. Send for illustrated booklet Mizner Development Corporation PALM BEACH, FLA. WASHINGTON: MUNSEY BLDG. Right There You Need Protection! Headlight dazzle—sun glare! These and other menaces to safe driving can be done away with if you equip your car with a good Visor. Don’t be satisfied with less than 100% protection. You Get it With a Visor We are clearing away our stock of good visors. They will add beauty to your car, and keep rain and snow off your windshield. The attractive prices should make you call and inspect them. E. J. Murphy Co. Inc. 710 12TH ST. N. W. Main 5280 {0 T 'fl-m’-flnl_-‘mfl 3 $35.00 Mot - It’s Easy to Own Your Own Home All you need is a lot and a little cash_(in some cases only a ]f:t is needed) to own one of these high grade, permanent 'HONOR BILT” homes, complete with plumbing, heating ’ In addition to shippin rials, we even loan you some cash to pay for labor, foundation and chimney materials. Loans are bein and Maryland as well as the District of chance to become an independent home owner. and lighting equipment. Alhambra—E!ght Rooms and Bath. $50.00 Mooty Payments. you all mate- granted in Virginia olumbia. Here’s your . Let us show you some of our houses that have been built in our most exclusive suburbs. They are not portable or sectional buildings, but are the better type of solidly built frame construction. The “HONOR BILT” Ready-Cut System is applying to residence construction the same principles used in the construction of modern skyscrapers. to you ready cut and fitted. The material comes Our _complete and simple instructions and plans have enabled many to build their own homes, entirely or partly built by the owner. you not n Before Of 34000 “HONOR BILT” or your riends put into the home wi to be an experienced builder to do certain parts of the work. ou rent, build or buy, let us explain our liberal proposit] you, Xo will cost o nothing and 3o wil b OoRERIa] iorms wapoottion to ‘bomes 23, were our Easy Payment Plan, labor be considered as cash. Vou do B Rooms and Bath. Monthly Payments, &. Here’s What You Save Over 34,000 “Honor Bilt” Houses Have Been Built in the U. S. A. Many have been built in Washington and_other cities here we have had an opportunity of comparing values of “HONOR BILE™ houses with houses built in the ordinary way. In the Tabr comparison based on observations of our customers. Below We Give You a fair Many of our customers have sold at prices that yiclded as much as $5,00.00 profit. Sec Tiustra- Trations Margi o. o. i 1 fo. No. o 6. No.7 No. 8 8,000.00 This FREE Book Explains ay, Tt contains over 100 different house plans, Explains our liberal Ea%l\ltmthly Payment Plan, Re: and i All Qur Labor Savin Qur Architectural Our One-Order-Bri Qur _ $100,000,000.00 Satisfaction. ~Cut System, Service, FREE book is beautifull in_colors. interior views give J& an excellent ‘Tooms. idea of the layout No obligation to buy. New Beautiful Exhibit napect our material. bullt-in_home 2 Phone: Main %637 See accurate models Also many’ modern . Exhibit FREE—=No obligation to bay. Call, Phone or Write for Your Copy. Ask for “Book of Plans” No. 2A49 ree Plan Service, uarantee of Complete illus- and “The Fatry—Four Rooms and Bath, @ $23.00 Momi, Exhibit Located at 704-706 Tenth Street, N. W. OPEN DAILY $:30a. m. to 5:30 p. m. 5 o 4:30 P W,