The Washington herald., 1921-10-30
CREDIT SITUATION BETTER,
FINANCIAL HOUSES REPORT
Upward Trend Slow but Sure, Corresponding
With All Previous Experience.

{nercnants doing business In q rea-
sonably Conservative way.
Z, s and 8. For answers to these
questions you mus rely upon the
officers Of commercial banks. We
have no information which would
enable me to answer them.
Pittsburgh's Outlook.
Robert Wardrop, chairman of the
board Of the First National Bank,
Pittsburgh:
Replying to your questions on the
business situation and the outlook
for the ensuing six months or a year,
would say:
/. do not anticipate pronounced
Improvement during the remainder
Of 1921; on the contrary, il will not
surprise me IL there should be a
slight reaction from the present
squirt in some lines before the end
OF the year. There has been a not
able improvement in sentiment con-
corning the building trade in this
dty during the past three. or four
weeks, and some new operations
have actually begun. but there is
still a disposition to await a fur
Their lowering of costs.
!. This question Is partly an
swered In the foregoing. There
should be a seasonable increase in
the coal trade, and already prepar-
atoms are reported to have been
made to increase the output of win
dow glass during the ensuing three
months In anticipation of demand
from new building operations. On
the other hand. the automobile trade
mas entered the season when there
Is naturally a decrease in OUTPUT
and falling OF in the materials
used in construction is likely to
take place, II it has not already
taken place.
j. Speaking generally, no pro
nounced improvement" is anticipat-
ed in basic industries until the
opening of the second quarter of
next year. when some of the eco
nomic problems now existing will
nave been solved or will appear less
formidable than at present.
t) The chief retarding influences
are three: Labor costs, the financial
position Of the railroads, and the
foreign situation. As to labor IL is
not SO much a question of hourly
or per diem wage as 1t is the ouaf-
ity ana volume of service given for
specified wage and the classifi-
cauons which labor insists upon
being observed By its union mem
ners. Some of the regulations" rig
idly imposed upon skilled mechanics
not only fRvolve increased cost of
production, but delay and actual loss
10 contractors. The latter, for thar
reason figure upon a wide margin
OF safety" in bidfiing upon contracts
in order to cover such contInren-
cies. As for the railroads. they con-
sumo at least 40 per cent Of the ont
put of steel mills, and because ~
the poverty of their financiaI re-
sources, they are even deferrine or
binary repairs and maintenance. as
shown by the most recent month";
reports of operations. The compli-
cations OF the foreign economic sit
uation have been SO Thoroughly
discussed OF late as to require no
turther diagnosis; what the world
awaits Is the application of a rem
edy.
60 I am not in a position 70
make an accurate estimate of the
amount of merchandise remainfnR
on the shelves of retail stores ar
this time, but the bulletin of the
Federal Reserve Bank of this dis
trict, recently issued. showed prog
ress in liquidation.
Concerning your remaining oues.
tons as to credit conditions. II NAV
be said that in the Pittsburgh dis
trict proper the percentage Of
frozen credits" was perhaps small
er than In any other large center
in the country. The national hanks
OF the city at the date of the last
official report showed a decrease
of 100000 In aggregate deposits
as compared with the same date la az
year. That is one measure of
liquidation. In addition IL NAV he
said that the Pittsburgh members
OF the Federal Reserve Bank of tbiy
district are borrowing only about
S20.0Oo,000, whereas their line Of
credit at the Federal Reserve Bank
at Cleveland is approximately s71
100000. These figures prove the
absence Of any tendency towards
Initiation in this city and districc
Conditions I'm Kansas.
A. c. Jobes, vice president. Firs,
National Bank, Kansas City, Mo:
I do not anticipate pronounced
business Improvement during rest
of year. i believe conditions will
continue for a time much as they
are now, at least until labor, liv-
ing and transportation costs are
settled on something near a prewar
basis.
The chief retarding influences are
delay in return to normally and
unwillingness Of merchants, mostly
retailers, to accept a reasonable
profit. Building materials have
been somewhat reduced, hut not
enough. Common labor is down.
because Of sthe surplus supply.
Skilled labor continues to demand
high wages, but has made a SUBJ
stantial concession in Improvement
Of its efficiency. The laborer gives
continued high rentals and Twins
costs as a reason for his refusal to
accept lower wages and points to
I