2202. Washington Savings (Washington, DC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 13, 1933
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
e2f8b2de

Response Measures

None

Description

Washington Savings was one of several District of Columbia savings/state banks closed in 1933, placed in conservatorship by the Treasury and later placed in receivership; its remaining assets were liquidated. The articles describe merger activity (Hamilton National Bank opening) that absorbed branches and 50% of deposits, but the closed banks themselves remained in conservatorship/receivership and did not reopen as independent banks.

Events (4)

1. May 13, 1933 Suspension
Cause
Government Action
Cause Details
Placed in conservatorship/closed by Treasury action; banks were in the hands of conservators as part of government oversight during failures and merger negotiations.
Newspaper Excerpt
Washington banks in the hands of conservators ... the Washington Savings
Source
newspapers
2. September 25, 1933 Other
Newspaper Excerpt
the new Hamilton National Bank opened today, releasing about $8,000,000 in deposits ... the Washington Savings ... the business of conservatorship was moving forward today in these four banks- the District National. the Washington Savings, the Northeast Savings and the Woodridge-Langdon Savings and Commercial Bank.
Source
newspapers
3. November 1, 1933 Receivership
Newspaper Excerpt
RECEIVERS GET ASSETS OF 8 SHUT BANKS ... The banks involved are ... Washington Savings ... designated by the Comptroller of the Currency today as receivers of the assets of the eight closed District banks now operated by conservators.
Source
newspapers
4. January 5, 1934 Other
Newspaper Excerpt
Receiver Norman R. Hamilton ... the Seventh Street Bank joined the Hamilton ... Receiver Hamilton thus had taken over what is left of four banks which joined the Hamilton merger. They are the District National. Northeast Savings, Washington Savings and Seventh Street Savings Bank.
Source
newspapers

Newspaper Articles (11)

Article from The Tampa Tribune, May 14, 1933

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Washington To Have New National Bank WASHINGTON, May 13 Designed to solve the complex financial situation presented by Washington banks in the hands of conservators, plans were formally announced tonight for organization of & new Na. tional bank here, with capital structure of at least a million dollars. to be headed by Edwin C. Graham, president of the National Electric Light company Four banks form the nucleus of the new institution Federalcan National Bank & Trust company. the District National bank. the Potomac Savings bank. and the Washington Savings Under the plan. 50 percent of all deposits in these institutions would be made available to depositors in the new bank. totaling about $10,000,000.


Article from The Washington Times, May 18, 1933

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The name, the First National Bank of Washington, the unanimous choice of directors of five closed banks participating in the merger, has been definitely discarded, it was learned today. The name by which the bank will be known is to be announced by President Edwin C. Graham today. Stock Campaign Opens Each of the five banks began an intensive campaign today to obtain $1,250,000 in subscriptions to the capital stock of the new institution. Use of the name First National, it was said, would ze contradictory to a policy observed by the Treasury Department in disapproving adoption of a name which has once been used by a bank which has failed. A First National in the District. it was said, went into receivership about 50 years ago. The names Central, United, and Hamilton, it was stated at yesterday's meeting of directors, had been approved by the Treasury officials. The names of Colonial and Consolidated also were suggested. At a meeting of directors of the institutions which are merging their "prime" assets in the new bank it was stated by Mr. Graham that he hoped the stock would be subscribed in seven days and that the new bank would be functioning early in June. 100,000 Depositors The new bank, it was stated. will start business with entirely liquid assets totalling $11,131,211 and that it will have 100,000 depositors. Member of Reserve It will be a member of the Federal Reserve system and will conduct a general banking business unencumbered with real estate or real estate mortgages, it was stated. Slow or doubtful assets are to be liquidated through conservators of the "old" banks. This, it was pointed out, would be and to than other Shuman, stockholders more ing W. returns rapid Irving orderly depositors of in methods. the bring- office and reorganization division of the of the Comptroller of the Currency, in reviewing the "Washington plan" of releasing frozen assets of closed banks, reminded the directors that stockholders' liability with respect to the "old banks" remains until the liquidation of their affairs is completed. 50 Per Cent Available All banks becoming a part of the new institution will make available 50 per cent of their deposits. 1 The capitalization of the new institution probably will be e changed as other banks enter the S merger. The five participating banks at S present are the Federal-American < National Bank and Trust Comf pany, the District National, the e Potomac Savings, Washington f Savings and the Northeast Savings. t The Woodridge-Langdon Savings and Commercial Bank also is exI pected to join and the United States Savings, Seventh Street ) I Savings and Chevy Chase Savings : Banks, are considering joining.


Article from Evening Star, September 25, 1933

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HAMILTON BANK'S OPENING MARKED BY NEW DEPOSITS One Receipt of $100,000 and Another for $50,000 Reported. BALANCE EXPECTED TO GROW DURING DAY President Graham and Other Officers Recipients of Many Congratulations With its headquarters and seven branches decorated with flowers and comfortably filled with customers, the new Hamilton National Bank opened today, releasing about $8,000,000 in deposits. To the surprise of both officials of the bank and police who had been stationed at each of the buildings. no lines formed before the opening hour of 8:30 and early crowds were small. The number of customers increased, however, during the morning hours until just before noon most of the lobbies were fairly well filled. Some persons were withdrawing while some others were making new deposits. President E C. Graham of the Hamilton merger and other officers were flooded with congratulations arriving by mail and by wire and there was a spectacular floral exhibit of baskets of flowers at headquarters. Deputy Controller of the Currency Lioyd G. Awalt called at the Hamilton Bank shortly after noon to greet President Graham and congratulate the officers on the opening of the new institution. Awalt was acting controller of the currency when the movement for merger of the Hamilton Bank was first started He came to the bank in the company of Maj. W Irving Shuman of the Treasury Department. who had handled the Government's negotiations for opening the new merger Most of the withdrawals were said to be small while there were many substantial new accounts. officials said Among the deposits at Hamilton headquarters at Fourteenth and G streets were one for $100,000 and another for $50,000. Larger Deposits Seen. While some bank officials were too conservative to make a prediction about the net business for the day. it was freely predicted in some quarters where the flow of business was being watched closely that by the end of the day the Hamilton would have ,larger deposits than when it opened for business this morning. The first customer at Hamilton headquarters arrived at 7:15 a m. with a request to make a deposit. He was George Tait. 421 Fifteenth street southeast He was admitted and made a deposit While the formal opening hour was 8 :30. the front doors of the Hamilton headquarters were actually opened for a little group of about four women who were there at 8:15. and from then on the customers came in a small but seadily increasing stream during the morning Established with a capital stock of $1,000,000, with $250,000 surplus. the Hamilton had on hand this morning to meet the demands of its depositors $2,500,000 in cash, President Graham said Most of this had been delivered to headquarters and to four of the member branches Saturday, but some of it was distributed to the three branches of the old Federal-American National Bank & Trust Co. early this morning President Graham. in an official statement on the financial set-up of the bank today said With a capital structure of $1.250.000, the Hamilton National Bank eniovs the unique position of being practically without liabilities beyond its deposits. Unencumbered by Loans, "In respect to assets. the Hamilton is a particularly model example We are unencumbered by loans or real estate All assets taken over by the bank consist of cash Government bonds, listed bonds at Saturday's selling prices. and loans on which schedules are checked up to date by the United States Treasury and Federal Reserve Board. This statement plainly shows that the Hamilton Bank has nothing but prime assets upon which depend the security and financial integrity of an institution of this kind. The value of equipment for the several banks comprising the Hamilton institution amounts to less than $50,000 The Hamilton has not borrowed a dollar from the R. F. C. or from any other source. Meantime, the Treasury Department had no appointed new conservators to take the place of four men who were taken over by the Hamilton National Bank for its official staff What the Treasury will do in this respect remains to be seen, although the business of conservatorship was moving forward today in these four banks- the District National. the Washington Savings, the Northeast Savings and the WoodridgeLangdon Savings and Commercial Bank. Some kind of action by the Treasury is anticipated soon in this respect as the situation regarding these in old member banks is now left "up the air." This, however, does not affect in any way the operation of the new Hamilton merger and it is anticipated that the Treasury will clear up the inservatorship question shortly Reports received at Hamilton headquarters from its seven branches pointed to a situation in the outlying houses very similar to that at headquarters. Many persons were making withdrawal (Continued on Page 3. Column 5.)


Article from The Washington Times, November 1, 1933

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RECEIVERS GET ASSETS OF 8 SHUT BANKS Comptroller Shifts Task of Setting Up Affairs From Local Conservators Cary A. Hardee, Florida exgovernor and banker, and Norman R. Hamilton, Portsmouth (Va.) published and former Customs Collector, were designated by the Comptroller of the Currency today as receivers of the assets of the eight closed District banks now operated by conservators. The banks involved are Chevy Chase Savings, Federal American National, District National, Northeast Savings, Seventh Street Savings, Washington Savings, Woodridge-Langdon Savings, and Commercial and Potomac Savings. Under present plans of the Comptroller, Receiver Hardee will be in charge of liquidation of the assets of the Federal American and Chevy Chase Savings banks, while Receiver Hamilton will take over the remainder. Hardee Takes Charge Mr. Hardee entered upon his duties today, visiting the office of John Poole, conservator of the Federal American National Bank. Hamilton is not expected to arrive in the city until November 8. The receivers are expected to take over the assets of one bank at a time. According to this plan, the dual receivership will not be in full swing for several weeks as it will take a week or more for the checking-in process in the case of each bank. Approximately 65 per cent of the assets of the Chevy Chase Savings Bank were taken over by the Riggs National Bank in a "Spokane" purchase several months ago while 50 per cent of the assets of the other seven banks were taken over by the Hamilton National Bank. Move for Economy Replacement of the eight conservators by two receivers, Comptroller J. F. T. O'Connor explained, was in the interest of economy. Six salaries and high bond premiums will be eliminated in the new system. Assets of the Mt. Vernon Bank While it has been the uniform policy of the Treasury to make a survey of the condition of a bank as soon as it is placed in receivership and prepare a schedule of stock assessments commensurate with the uncollectible amount of assets, there was no indication of the Treas ury's policy in the case of the eight banks involved in the present receiverships. Four conservators replaced under the new system have been acting without pay since the Hamilton Bank opening as they had accepted positions with the new bank. They are Joshua Evans, jr., District National; George F. Hoover, Northeast Savings Bank; R. A. Sisson, Washington Savings Bank, and E. L. Norris, Woodridge-Langdon. The others are John Poole, Federal-American; George W. Offutt, Potomac Savings, and John D. Howard, Seventh Street Savings.


Article from Evening Star, November 1, 1933

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might otherwise have been paid out in salaries to receivers." he said. "Both of the newly appointed receivers are mature men of wide business experience." Mr. Hardee, who takes over the Federal-American and the Chevy Chase assets, was Governor of Florida from 1921 to 1925. In addition, he is an experienced lawyer and banker. A native of Live Oak, Fla., he began his law practice in 1900. He was solicitor general for the third Florida judicial district from 1905 to 1913 and was Speaker of the House of Representatives in that State in 1915 and 1917. He has been in the banking business since 1902. In that year he organized the First National Bank of Live Oak. He served as a director and vice president from 1902 to 1908, and in the latter year was elected president. From 1908 until 1928 he remained as president, and he still has an interest in that bank although no longer connected with it in an official capacity. In addition he is now president of the Commercial Bank of Live Oak and has been for the last five years. Mr. Hamilton, who takes over the assets of six banks, of which the largest is in the District National, was born and raised in Portsmouth, Va. which is now his home. He has had extensive business experience both there and in Norfolk. For several years he was a director of a bank in Norfolk and is now a director of the Mutual Building Association there. Collector of Customs. From 1913 to 1922 he was collector of customs at Norfolk-Newport News, representing both the Treasury and State Departments in enforcing neutrality laws in Virginia waters. In this position he virtually was head of a business with an annual income of around $5,000,000. As nautrality enforcement officer, Mr. Hamilton interned at Newport News the German raiders, Prinz Eitel Frederick and Kron Prinz Wilhelm, and the German prize ship Appam. At Norfolk he boarded the Russian steamer Omsk loaded with $3,000,000 worth of allied food stuffs and placed under arrest the heavily armed, mutinous crew of 48 Bolsheviks. The policy to be followed by these two receivers in handling the remaining assets of eight banks was briefly put in the controller's statement when he said the receivers "will devote their efforts toward liquidating the remaining assets of each of the eight District of Columbia banks." The conservators of the member banks of the Hamilton, who are succeeded by receivers are as follows: Federal-American, John Poole: District National, Joshua Evans, jr.; Potomac Savings, George W. Offutt; Washington Savings, Robert A. Sisson: Northeast Savings, George F. Hoover; WoodridgeLangdon Savings and Commercial, E. L. Norris, and Seventh Street, John D. Howard. Four of these, Evans, Sisson, Hoover and Norris, have become officials of the Hamilton National Bank. The question of whether a new receiver will call for an assessment on stock in these eight banks remains unanswered today, although it was a matter of vital importance to the stockholders ir all of these institutions. The policy on this assessment is expected to be developed later.


Article from The Washington Daily News, November 9, 1933

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New Receiver for D. C. Banks Recalls Day When He 'Received' German Vessels in War Even a closed bank depositor minus dividends ought to get a kick out of this story told by Washington's newest closed bank receiver, Norman H. Hamilton of Portsmouth, Va. "It was one morning before the United States entered the war," says Hamilton, sitting at his mahogany desk under a framed picture of a former president of the defunct District National Bank, in his office as receiver for the District National, Northeast Savings, Seventh-st Savings, Washington Savings, Woodridge-Langdon and Potomac Savings Banks. "The German raider Prince Eitel Frederick slipped into Hampton Roads. She was SO loaded down with rescued passengers and crews from French and British ships she'd captured and sunk-yes, and I think one American ship-that she had to make port somewhere. She couldn't keep on feeding her prisoners." Hamilton then was a different kind of Government "receiver"; as neutrality enforcement officer he had to enforce neutrality laws in Virginia waters. There were two days of negotiations and then the passengers were landed. The ship was interned, its officers and crew were interned. "They built themselves a village in the internment camp," says Hamilton. SLEPT ON FLOOR The Kron Prinz Wilhelm, another raider, was next. "The captain of that ship," Hamilton goes on, "came into my office and asked me if he could lie down on the floor and sleep. He said he hadn't slept for six days and nights -hadn't dared be off watch." Then there was the German prize ship Appam, a British steamer in the African service, which had been en route from Sierra Leone, West Africa, when she was taken by a German raider. Thirteen Germans brought her into Hampton Roads, with 400 passengers and a British crew on board. "I've often wondered what became of the captain of the Wilhelm," says Hamilton. "The commander of the 13 Germans who brought in the Appam, committed suicide when he finally got back to Germany." And the Russian steamer Omsk, loaded with $3,000,000 worth of flour for Great Britain, which put into Hampton Roads for fuel and repairs, and couldn't get out again because her crew mutinied. "They were afraid," says Hamilton. "Germans were sinking supply ships and they had no convoy." Another crew was gathered together to sail the Omsk and its load of flour.


Article from Evening Star, December 15, 1933

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BANK LIQUIDATION WILL BE QUICKENED Former Gov. McLean Named to Help Receiver in D.C. Institutions. BY EDWARD C. STONE. Liquidation of six Washington banks is to become more rapid by the appointment of Angus W. McLean, former Governor of North Carolina, as attorney to assist Receiver Norman R. Hamilton. The banks to which he will give attention are the District National, Northeast Savings, Seventh Street Savings, Washington Savings, Potomac Savings and Woodridge-Langdon Savings & Commercial. Appointed yesterday by Controller J. F. T. O'Connor, he has already begun his new duties. Mr. McLean has maintained a law office in Washington for the past six months. He resided here at the time of the World War and for two years after that period. being director and later managing director of the War Finance Corporation. He was Assistant Secretary of the Treasury in 1920 and 1921, being in charge of customs. internal revenue, prohibition enforcement and secret service: also serving as chairman of the Railway Loan Advisory Committee, under Secretary D. F. Houston. He served as Governor of his home State from 1925 to 1929, and back in 1920 was president of the North Carolina Bar Association. Depositors in the six banks are hoping for an early payment of a part of their funds. This, however, depends on an opportune time for the sale of frozen assets. Banks Planning for Insurance. Banks all over the United States must start the reports at once which they will make the Federal Deposit Insurance Corporation, in connection with the temporary insurance plan which goes into effect on January 1. Under the temporary arrangement all deposits up to $2,500 will be insured up to July 1. After that the permanent law is to go into effect. by which larger amounts are to be protected. The reports to the guarantee corporation are to be made as of today, December 15, and cover the number of depositors each bank has, amount of deposits and other facts. The banks are given until December 23 for the completion of these reports. On or 08fore that date the reports must be filed and the first payment of onefourth of 1 per cent of deposits must be turned into the insurance fund. In some quarters it is anticipated that there will be a considerable increase in bank deposits after the first of the year. With deposits guaranteed up to $2,500. a new era in confidence is expected to develop. New York Banks Paying Dividends. As reported in a bulletin by Waggaman, Brawner & Co., Inc., investment bankers, most of the large New York Clearing House banks have declared their regular dividends for the last quarter of 1933. These bank stocks are largely held by local investors, and checks covering their dividends will be received by them on January 1 or 2. Dividends already declared are:


Article from Evening Star, January 5, 1934

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RECEIVER ABSORBS REMAINING ASSETS Will Transfer Property of Seventh Street Savings Bank to Office. Remaining assets of the Seventh Street Bank today were taken over by Receiver Norman R. Hamilton, who will transfer them gradually from the old institution to the receiver's office in the old District National Bank. The Seventh Street Savings Bank joined the Hamilton National Bank and already 50 cents on the positors merger has paid dollar. its The deSeventh Street Bank location is now one of the branches of the Hamilton National Bank and operating on a 100 per cent basis as a branch. The conservator of the Seventh Street Savings Bank, John D. Howard. former president of this institution, is co-operating with Receiver Hamilton in the lengthy task of making the official transfer from a conservatorship to a receivership. When the assets are their new on business of street, all moved the to the location receivership G on such assets will be conducted in one particular corner of the old District National Bank. Receiver Hamilton thus had taken over what is left of four banks which joined the Hamilton merger. They are the District National. Northeast Savings, Washington Savings and Seventh Street Savings Bank. Two other banks which joined the Hamilton still have their remaining assets in the hands o conservators. but these will be taken over one bank at a time into the receivership. These two remaining banks are the Woodridge Langdon Savings and Commercial Bank and the Potomac Savings Bank. Both of these institutions are now operating in their own locations as branches of the Hamilton Bank. The transfer of remaining assets from banks which joined the Hamilton National Bank has no effect whatever upon the operation of the Hamilton National Bank merger. This new institution, which opened in September with a headquarters at Fourteenth and G streets and with seven branches, had deposits of more than nine million dollars on December 30, according to its report today. in response to a call by the controller of the currency for reports on the condition of all national banks.


Article from The Washington Times, March 2, 1934

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ings on the Flecher Rayburn bill and kept his local manager, A. Harmer Reeside, on the jump showing him around. Like all brokers we've talked to. Mr Westheimer thinks the Hare Fletcher Ray- Dunbar burn bill must be modified or else the stock market business will go to the "bow-wows." He says: "All American progress is due to the fact that people have speculated." He cites some very conclusive reasons for his statement-building of the railroads, promotion of aviation, advance of telegraphic and telephone communication, and the like. Says Mr. Westheimer, and he's right, too: "Where would America be if the weren't a we have today speculative any empire mood? people stretching Would in across the country, or still be a small English colony?" He thinks the average Amerigamble, can citizen take the wants big chance. to plunge, Is he right? And while on the subject of the Westheimer firm. it might be stated that Miss Bessie Shoor, is popular customer's woman, around and about again. She recently was operated on for appendicitis We're beginning to get fan mail. People are writing in to ask about the condition of certain stock. though, we aren't posing and do the brokers' usurp Sorry, as experts business. not wish So, in- to if you write us for that kind of formation and we don't answer, please appreciate our position. Now that the Potomac Savings Bank has physically moved into the District National Bank Building things are really buzzing there. The Northeast Savings already was there. Norman Hamilton is receiver for five of the closed banks which entered the Hamilton National Bank merger and he hopes to have more company soon. In addition to District and Northeast and Potomac, Mr. Hamilton is receiver for the Washington Savings and Seventh Street Savings. Ferry Heath, of E. H. Harriman & Co., goes to lunch without his coat in this weather. But he wears his hat. Richard Whitney, who's been about here testifying the visited stock a exchange, hasn't even single local brokerage office, it's said. John Caswell, ir., manager of Clark, Childs and Keech, is out of the city. He's in New York. Milton Sherrill, local for Investors in the Barr manager with James offices Syndicate, Building, business that February the reports through Washington cent above office was exactly 100 per that done in January, and with two exceptions, the best month since May, 1933. Mr. Sherrill said: "Our business over the United and Canada and we States rapidly, expect is improving 1934 from to A report office in states that Minn., the be a home good year. the Minneapolis, first six months of this year shows an increase for the company of 21 per cent over the same period in 1933. "Mrs. Rose Morrow led the entire sales force here in production in February. She has been with the syndicate several years and February was one of her best months." Mr. Sherill states that he very optimistic about the immediate future for his business in Washington. "Things are more settled here and the than at any brighter right now future time looks for over a year. In my opinion, business is going to be good in Washington this year."


Article from The Washington Times, March 27, 1934

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STOCKHOLDERS BANKS FOUR FACE LEVIES By DUNBAR HARE Stockholders in four of the closed "State" banks which became part of the seven-bank combination that merged into the Hamilton National Bank may have to pay their assessments within three weeks, it was learned authentically today. Practically all details in connection with levying the assessments necessary before an additional payment to depositors can be made have been completed, except in some cases where the approval of the comptroller of the currency is being temporarily withheld. That, however, will be straightened out within two weeks. giving an extra week for the sending-out of the notices. Banks Involved Banks involved are: Potomac Savings, Northeast Savings, Washington Savings and Seventh Street Savings. The fifth "State" bank in the Hamilton merger, the WoodridgeLangdon Commercial and Savings, is not involved at present, since it is not in receivership. However, its remaining assets, like those of the other four, were released from the option held by the Hamilton last week, and a levy there is expected as soon as the Treasury Department decides whether to give that bank a separate receiver or bring it under one of the two receivers who are handling the affairs of the other six banks-two of them national -which became part of the combine. Assessments Delayed The Hamilton merger was predicated on the fact that after six months that institution could call on receivers of the closed "State" banks to substitute secondary assets for time assets up to 25 per cent. In the case of the Federal American and the District National banks, however, the option does not expire until September 23, at which time the consolidated bank can demand 50 per cent of remaining assets for those it now holds but deems unworthy. Under the circumstances, stockholders of the Federal American and the District National are not expected to fear assessment until after the option expires. Stockholders of the four "State" banks involved are expected to produce about $500,000, a 100 per cent assesment on the par value of the stock they hold.


Article from The Washington Times, August 18, 1936

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LIQUIDATION TO REQUIRE 2 YEARS Five Institutions May Distribute Nearly 100 Per Cent Based on the potential value of the remaining assets of Washington banks, which suspended business in 1933, it was estimated today that the District National Bank will pay off within a fraction of 100 per cent and the Chevy Chase, Northeast Savings, Seventh Street and Washington Savings will be close to it when their accounts are finally closed. Statistics garnered by Treasury Department officials point to the fact that the average time necessary for final liquidation of a bank is five years. Washington's banks have been in active receivership three years. Therefore, it is expected that it will take at least two more years before the final accounts are closed. Estimates Tentative In the matter of time, as well as the matter of dividends to be expected in the various banks, particular attention should be given to fact that the value of the remaining assets rests solely on estimates of the receivers. In a large majority of cases those assets are tied up in large real estate holdings. If the properties continue to increase in market value and purchasers are found in good time, the deals can be closed, the estimated value realized and the banks' affairs wound up in short order. On the other hand, if a purchaser cannot be found willing to pay the price set by the receiver the dividends will suffer. District Bank Data It is indicated by the reports, however, that the trend toward moving these large real estate blocks is strengthening and the banks are expected to realize close to present estimates. In the case of the District Na(Continued on Page 3, Col. 3) -VOTE AMERICAN-