Evening star., 1919-03-09
NATIONAL BANK FIGURES SHOW
THEY DID NOT ''PROFITEER'
But Statement of New York Federal Re-
serve Bank Discloses That Your Uncle
Samuel Got Pretty Big Profit

In the matter OF making money out
of the banking business the sugges-
tion that the United States Is some-
thing Of q profiteer itself is carried
In the figures which the National
Bank Of Commerce OF Detroit calls
to public notice. It says that the
report of the controller of the cur
rency for the year 1918 states:
The average earnings on capital
stock for all national banks for the
last fiscal year was 1898 per cent.
the greatest on record-and the earn
ings on capital stock and surplus OF
all national banks were 1Lo9 per
cent. In the forty-nine- year period
from 1889 to 1918 the average earn
ings Of all national banks amounted
to 1881 per cent on stock
These official figures are interest
ing il only to show that national
banks did not "profiteer' during the
war.
q. S. Profit 1O3 Per Cent.
In this connection it is interesting
to note that for the year 1918 the
Federal Reserve Bank OF New York,
q government bank, Is reported to
have earned on its paid-in capital
stock 10s per cent. The capital stock
in this bank is owned by banks
which are members OF the federal re-
serve system-and the dividends are
limited by law to per cent, 80 that
the governments share Of the profit
OF proffteer" apparently applies only
to individuals. partnerships and pri-
vately owned corporations.
German Indemnity Issue.
One of the big banks OF the United
states. in its summary of business
conditions. Discusses the heavy indem-
nifty which the allied nations propose to
levy on Germany It points out that the
United States, entering the war upon
highly moral grounds, stated that 1--WE
seek no indemnittes for ourselves, no
material compensation for the sacri-
nces We shall freely make" and is
therefore not party to the contro-
yersy. Just how Germany is to pay
a great indemnity 10 a perplexing
problem even to the allies themselves.
The worlds stock OF monetary gold
aggregates ten billion dollars, of
which America holds approximately
one-third and Germany but S541 1885,
600. II Germany cannot pay tribute
in gold-and that nation produces no
gold within her own bordere--she
must be allowed to earn it by trading
with the world or be permitted to pay
the indemnity by the shipment of
goods to allied nations. England,
for instance. does not propose to have
her Industries slowed down by allow
ing Germany to export manufactured
goods in volume to Britain, where
already there are many idle men.
In every Industrial quarter 1t Is adj
mitted that while the cost of living
remains at or near its present level,
there can be no general and material
reduction in wages. Government con-
troll Of food products, and the high
blanket contract into which the gov
ernment entered for wheat, keep the
vital kitchen things from seeking a
natural level The government is OBJ
ligated to pay 1926 per bushel for
be normal. and -four is kept up with
wheat. Flour alone, At low prices,
Wofild control chain of other pro-
ducts and drag down the cost OF the
wage-earner's table Substantially.
The Secretary OF Comnierce is pro-
certed endeaxor to reduce prices to
level which would make them at
tractise. and is conferring with the
steel men a trade authority says that
The government has IT in Its power
to quickly cut away the artificial bar
riers surrounding the daily table, in
In the price Of fiour. charging the loss
to the war.
Steel and Textiles.
srhA ysaehn u.,,s~.. 4Ars AZ :. -.
lief seems to be confirmed that in
steel prices must be. further reduced
to bring in buying, which is waiting
on a settlement Of the price question,
and which may be in consfdera BILE vol
ume when the matter Is decided. In
textiles, mill operations are steadily
dimintshing and It is estimated that
one-third Of the capacity of cotton
plants are inactive and not so per
cent OF woolen machinery employed,
with everywhere a disposition to pro-
coed cautiously. Leather and the shoe
trades are quiet, Commercial failures
show further decline. both for the
responding week last year.
Reading the pages devoted to busi-
ness In some Of the daily papers, one
dnds considerably optimistic material
In different directions. The steel men
say the industry is not as badly on
90 hSPOtS SSo' f<dI Sc Tctdbt cStADitSH-
ments in London and Buenos Ayres
will begin to send their buyers to the
New York market soon. The approach
Of. spring, with opportunities for
open-air activities, is inducing cheer
full sentiment Statesmen in the silk
trade report considerable recorder
ing by retailers, etc Dun's review
covering the whole country, observes
that while confidence remains un-
shaken. there is still much OF uncer-
tainty, inducing continuance of the
cautious attitude, and the prevailing
disposition is to limit commitment
to the barest necessity and not to an
ticipate forward requirements. This IL
so, Notwithstanding that market de-
fiation embraces . considerable range
of commodities and some cuts of 4
drastic nature. On the whole, manu-.
featuring In most lines has recedet
and increasing unemployment has cut
OH . part Of the retail purchasing
power. The outlook for exports Il
more encouraging, with some actua
transactions resulting from foreign
inquiries.
Buy Savings stamps at Discount.
"a vast amount OF war savings
stamps are being bought up by people
who 70 around the country offerinR