Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-08
BY /. A. FLEMING.

money in Washington is actually
Close" said one of the leading officials
of a large bank, land the reasons for
it seem various yet nevertheless well
indicated
Washington, in company with every
other city, has suffered from the
freight jam: manufacturers with large
consignments of goods en- route to
Wholesalers. jobbers and retailers find
II impossible to make collections
while the jobbers, likewise suffering
from transportation Ills, are in the
same boat
Collections generally have fallen
on materially, due in part to the vaca-
ton season, but probably more to the
fact that people are holding their cash
many of them with intent to buy into
the stock market when the real turn
comes. or using the cash in home
buying.
Our deposits today ere (after ref
erence to the records) $o,000,O00 less
ably other banks have suffered in like
manner.
"A study shows that the corpora
tions have very much less to their
credit than they had year ago, say
40 per cent less, which may be said
for corporate purposes in lieu of ina
bility to borrow as freely as they
would like to.
The decrease in individual deposits
may be said to be 80 per cent of, and
government funds have also shown
about 80 per cent decrease.
Some observers have told US that
a very large percentage of the en-
ployes of the government are prac-
tically newcomers and that they are
sending their savings to home banks.
This may or may not be true. In
10, he . ta . hat
the individual is buying as freely and
With the same disregard of expendi-
lures as a year or more ago. but for
some reason. mayhap because of va
cation periods the deposits have
fallen on
redeposits this year. and the govern
ment has been a constant and press
ing borrower. hence the loss in de-
posits to the credit of the govern
ment-
I'VE also have customers who have
carried their investments right
through probably the longest drag
ged-out bear market in the records
and have therefore made some loans
of this character. while the with
drawal of deposits to make invest
mentS at current prices is beginning
to make itself felt.
Increased Costs.
The largely increased cost Of liv-
ing has been another reason for the
decrease in deposits to the credit of
the individual. Some people who
have been saving regularly will find
their living expenses so boosted by
the new scale of rents that they will
have nothing to save. This has not
made itself seriously felt as yet, but
when the fall season comes many $50
and $50 a month rent payers Will be
in the $50 and 500 class.
"a local bank man who has much
business with the departments pre-
diets $500. 900 to 100000 loss in
deposits with the next call of the
controller of the currency.
Internationally the low prices at
which securities are being sold. rela-
lively low, whether really low or not,
are causing nervousness and excite
ment among that large following of
the public that only occasionally
tempts the market. Brokers' Offices
are crowded every day. and the class
referred to is represented by the oc-
casional watchers of the quotation
board, growing daily more numerous.
Their buying will help, perhaps, I'M
less we are to have still further re-