Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-07-18

loan them out on call at, say. X to
per cent. In this way 1t Is not unlike
credit in this country for the purchase
of supplies by the British government
may be still further delayed.
Buyers Flock to New York.
For the most part, the general body
of retail merchants throughout the
United States buy their stocks in the
city of New York. which Is thus the
headquarters of the wholesale trade of
the country. Obviously, therefore, the
existing status of business at any given
time Is reflected by the wholesale trade
of New York. 1t Is interesting. there
fore, to note the present conditions OF
this trade as far as 1t Is possible 10
make an accurate calculation. In each
year there are two wholesale seasons;
the winter-spring season beginning
about the LIST of January and ending the
LIST of April and the summer-autumn
season commencing Immediately after
the 18th Of July and coming to close
about the LIST of October. 1t will thus
be seen that the summer-fall period OF
wholesale activity Is now beginning.
In this connection it may be remark
ed that there is always a preliminary
period of partial activity in June as TO
which comparisons may be made. Ac-
cording to the New York Daily Motel
Reporter. which publishes the arrivals
at the hotels every day throughout the
year, the merchants and buyers coming
to the city in June Of this year exceed
the aggregate of last year by % per
cent. While this is a substantial in
crease it will not do to indulge in any
rainbow chasing over these figures. In
the first place, June, 1914, was a period
Of extreme dullness and so an increase
of 90 per cent over such a month is not
strikingly remarkable, although it is
gratifying that the increase has oc-
Cured.
Already thus early in July the Skin
mish line of the advancing army of
merchants and buyers is in town and
the hotels are heavily taxed to accom-
modate the arrivals. 1t seems likely
Of the city will be overrun with guests
and that they will find it difficult to
take care of the arrivals. This is indeed
a gratifying situation since 1t 1ust1hes
the conclusion that the volume of
wholesale business done this season
will reach very large total and that
the retail business of the country dur
ing the coming autumn and winter VIII
reach high-water mark. This is very
healthy situation. since the demands of
the retail trade are normal and healthy
and are wholly independent of war
conditions and the large trade in war
supplies which will cease when peace
is restored
Good Trade Indicated.
This will be pleasing news to the
business world in this country, since it
affords evidence that the period OF
dizziness and of apprehension for fear
of future upsetting conditions has
ceased and that no class in the COM
mercial or industrial world is alarmed
about anything. During the past few
months the press has been indulging
in forecasts Of coming prosperity and
predicting the speedy revival OF trade.
These pleasing demonstrations have
been repeated SO often that the general
and is longing for statements about
the prosperity that is here and wishes
to see something OF this prosperity and
to see the present tense substituted
for the future in these rosy statements
Fruit dangling on the trees of prom
cannot eat 1t; and the great majority
of people who deal in facts and not in
dreams want to see something that
they can eat. Well. % per cent in
chants and buyers is the breakfast of
the day which has opened.
Money Market Conditions.
The circulation statements of the
federal Treasury Department and the
statements of our banking institutions
indicate that there is more idle cash
in the United States than is necessary
or that a healthy condition of business
should warrant. In June of this year
the gold circulation amounted to ST.
670.000.000. which is $2S,00O,000 more
than last year. Added to this is more
than $s0.000,000 of federal reserve
bank notes, and an increase of $685.,
100000 in national bank. notes. This
makes a total circulating currency"
Of 1855 100000, an increase of $751;
100000 over last year.
In times Of booming trade and pros
porous activity. though. money moves
very swiftly and silently, there is less
actual cash in the hands Of the people,
and more in the banking institutions
subject to the demands of trade. The
Times expert well says that this coun-
try has never learned how to get rid of
unnecessary circulation: that although
the needs Of domestic trade are less
than in other years, there is more
money in actual circulation than ever
before. No doubt the federal reserve
notes in time will contract as well as
increase in volume. but now they are
an addition to an existing excess
Under normal conditions we should ex-
port the surplus gold. and take back
what we want more. But now we are
unable to import goods. for they are
not produced.