The Washington herald., 1921-10-30

The washington herdIu puphS
below the Geographic answers from
the first Of several groups of the
leading bankers in all sections OF
the United States, in response to a
list of nine specific questions sent
them.
In general the replies indicate
that business Improvement Is under
way.
The nine questions asked were:
1. Do you anticipate pronounced
improvement during the rest of the
year?
2. II not, what kind of business
do you anticipate?
3. When do you expect pronounc-
ed improvement?
4. What are considered the chief
rGtarding influences?
5. How do stocks on the shelves
of retail merchants compare with
normal?
6. When do you expect credit con-
ditions to return to normal?
Z. OF commercial loans outstand-
ing October /, approximately what
percentage represented frozen cred.
its-that is. renewals or extensions
of loans made more than twelve
months ago?
s. Approximately what percentage
OF frozen credits outstanding July
remained unliquidated on October
II?
9. What are the prospects for
further liquidation of frozen credits
in your district in the near future
The answers follow:
Situation In Chicago.
George NJ. Reynolds, chairman OF
the board, Continental and CONNER
cial Bank, Chicago:
Replying to your questions in the
order listed by you:
l. Regret an inability to see pro-
| nounced improvement for the bal
ance Of this year.
Q. Gradual improvement has been
! noticeable for some weeks. II II
continues, and there are no surface
indications to the contrary, it will
be more beneficial in the long run
than would a rapid upward swing
3. 1t is difficult to answer this
question, but I rather look for mod
crate improvement as against any
thing of a pronounced character.
4. The chief retarding influences
are the disturbed economic situa-
ton abroad and the lack Of a more
complete adjustment of prices and
wages in this country.
8. Ny information is that retail
ers have allowed their stock to be-
come somewhat depleted.
6. Great gains have been made In
restoring the credit situation. The
turning point was reached some
months ago. and nothing is to be
feared from that source now.
and s. Many loans that were
regarded as unliquid some months
ago have been paid. and others have
been. put in such shape as to insure
ultimate retirement: in other words
frozen credits have largely been
thawed out.
g. As intimated above, liquidation
OF remaining slow credits is in pro-
cess and now there is enough liquid
capital in the country to meet all
legitimate business requirements,
George w. Norris, governor of the
Federal Reserve Bank of Philadel-
phia:
and 2. do not anticipate pro
nounced" improvement during the
rest Of this year. 1 anticipate that
progress will be fitful and slow, but
that the worst has been passed, and
that with occasional setbacks the
tendency will be toward improve
ment.
,. I do not expect pronounced
Improvement until after wages and
freight rates have been readjust-
ed, tariff and taxation questions set
tied, and conditions in Europe SUM-
ciently restored to enable our for
eign customers to purchase in nor
NAL volume and pay either in goods
or cash.
4. The answer to the previous
question indicates what / regard as
the chief retarding influences
.. cannot answer this uues-
ton In the form In which IL is asked
because, II is difficult to say what
normal" stocks are. Stocks of mer-
chandise in forty-nine retail estab-
lishments in the Third Federal Re-
serve District reached their lowest
point on March 81 of the current
year, being 10 per cent less than the
amount on hand on the same date
OF 1920. A slight recovery occurred
In May and June. which was more
than lost, however, In July and
August. The latese data available,
which are for August, denote stocks
or lis per cent less than for
August Of 1890, which was the
month. when retail stocks were
heaviest, being 81 per cent greater
than in 1919, The rate of turnover
for retail merchandise also was
slower during July and August of
this year than for any period since
the establishing OF the reportins
service. Orders outstanding at the
end of August as compared with
total purchases of 1890, however
were per cent greater than at any
previous time this year.
| s. do not think that credit con.
ditions are today sufficiently abnor-
mai to be cause Of anxiety TO any