Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-22

a big decrease in the bank deposits
H: H. Mckee is the president Of the
national Capital Bank and one of
try. He has been identified with the
American Bankers Association IA
various ways and is now the yioM
president of the natioaal bank section
AT the forthcoming meeting Of tJA
american Bankers Association Ne.
dency Of the section. He has asso
served on the executive committee
and has long looked after legislation
in Washington in the interest of the
banking fraternity as represented by
the American Banking Association.
mlttee of the local association,
charged with giving due publicity to
the coming meeting OF the American
Banking Association in October.
Armour 4 Co. ON Business.
The big Chicago arm has Joined the
business doctors in diagnosing condi-
tons as they exist, and they seem to
hopeful view Of the outlook for the
patient than many eastern authori-
ties.
They find many large industries
moved to safeguard their business by
slackening their production. The
of capital has affected all Industries
and the facilities are not available to
carry larger volume of goods from
the point of production to the point
Of consumption.
They also note cancellation of or
ders. due, in fact. that the retailer be-
lieves that prices are going lower.
Another reason for this is found in
the anticipated big business this
summer and consequent large sup
plies which did not move as freely as
expected. The feeling that prices are
too high has been passed along from
| the consumer to the retailer and in
| turn to the jobber and the manufac-
turer.
THE backbone Of the industrial
structure. credit, gained no strength
during the past month. Bankers con-
| tinue to hold up interest rates; in
| dustrial loans are dificult to main
| tain and then at rates which were
practically 10 per cent, many bor-
rowers Of sterling worth and of
known financial solidity being forced
to pay that rate.
Small business is feeling the
credit stringency more and more.
Crop conditions seem to warrant OPP
timism."
Gains ON Polish Situation.
While some efforts have been made
during the past week, especially in
| the earlier days of the week, to be-
little the effect of European condi-
they were a powerful and dreaded
factor. with the relief that followed
| the victory Of the Poles welcome and
| unquesionably a cause for the i'm
provement on Wall street.-The turn
of the long lane on some stocks. with
others still hanging IRE and little
chance for a prolonged recovery until
conditions are vastly improved
Two Sadly Needed Laws.
! J. S. Bache & Co., in their regular
bi-weekly letter. have this comment
| to make.
Perhaps a new administration will
enact two measures which would be
situation. These would be the re-
funding of the public debt with a
| long-term bond at a properly high
rate of interest. The other would be
the repeal of the excess profits law
and the substitution of a tax on turn
over.
1.-The effect Of these would be magical
in relieving the credit strain and in
making more valuable securities and
properties by reason of the reten-
ton of legitimate profits. A stream
of new capital would be released to
develop the country"
Bare Of American Securities.
It becomes more and more evident
that England is bare of American
securities In the good old days when
the balance of trade was sufficiently
against that country to produce weak
ness in sterling exchange, a flood of
securities would be uncovered and
| sold on the American market to the
steadying of exchange.
! Last week exchange was decidedly
soft It might be called lodging facts
to claim that no part of it was due
to European conditions, but a part
of it was due to the fact that the
needed securities for equalization of
| the trade balance was not available.
nor even any considerable portion of
| it, Gold is the commodity that will
stiffen exchange, and gold is what
England is looking for right now
with some millions probably en- route
| for America right now.