Business: Funny Race

Fortnight ago Bankers Trust Co. and Central Hanover Bank & Trust Co., two of the few big Manhattan banks that maintained regular dividends at 1929 levels throughout Depression, suddenly cut their quarterly payments one-third. Reason, Bankers Trust tersely explained, was "low interest rates and resulting reduced operating earnings." Because both institutions had earned their dividends in the first half of this year, their announcements gave the over-the-counter bank-share market a bad turn for a few days. The fear that First National, the "Baker Bank," would...