Evening star., 1922-03-19
FINANCIAL.
MORE HOPEFUL FEELING
IN THE BUSINESS WORLD
Rise in Sterling, Recovery in Public Util-
: ity Securities and Increased Clearines
+. Are Favorable Factors.
RY !. A. FLEMING.

BY ]. 4. FLEMING.
There have been evidences of i'm
proved business conditions in the last
few Days, probably the chiefest of
these being the rapid recovery of the
English pound sterling. 1t is a
mercIaI nation of pre-war times
should again find her circulating me-
1Ium approaching its face value.
We are more or less dependent on
the nations of the old world as a
buyer for our surplus products and
are interlpcked in the finances of the
world. These facts are recognized by
the leading business men of the coun-
try and cannot be denied. despite ef-
forts to emphasize the necessity for
exaggerated aloofness in our rela-
tions.
1t was. of course, believed that
Great Britain would make the speed
lest recovery from the disastrous
world war. but that the progress has
been so rapid is a puzzle to business
men generally and flnanciers.
France is making some progress
and Belgium and Italy are slowly pet
terinS tHetF posilioHS aS ~ 'i'eii
rencies.
Much of the better feeling at home
has come from the stOppage OF the
decline of prices in agricultural prod
ucts, as the higher figures give more
courage to the agricultural element,
the hardest hit of any in the business
depression.
The public utilities have apparently
come into their own again. A de-
cision handed down in the past few
days by the highest court or the
United States in the New York Con.
soIidated Gas case upholds the right
q ofsthese corporations to a fair return
on their invested capital. This, too.
irrespective of what the rate charge
for service may be.
The advances in the price OF ut1i-
flies shares has demonstrated most
remarkably their changed position.
II is not SO long ago that People
Cas-the Chicago gas monopoly-was
selling twenty or thirty points lower
than ii is today, now in the midoie
sos. Consolidated Gas moved up
very sharply to 111k on this de-
cision and all over the country the
ruling has been an elixir to these
shares. In our own city the shares
of the Washington Railway and Liec-
trio Company. both common and pre-
ferred. have moved up many points
and the bonds of utilities corporations
those of other corporate securities.
One finds in the daily comparison
of clearings. the real Thermometer OF
business. that there are great many
increases, perhaps more noticeable in
the stoppage of the losses than IN Inc
net gains made
Corporations. generally speaking.
made Il lamentable showing for the
year 1921, very many of the old-time
dividend payers and many OF the
more recent promotions turning In
heavy net deficits as the result of the
years operations But the managers
of these corporations, as rule, now
say that the worst is over, and every
body seems anxious and willing to
accept this view of conditions.
banks Of the country to allow any one
to believe that business. though i'm
proved, is anywhere near normal.
Unemployment. while probably
somewhat improved, as to the number
of men at work. is still too apparent
ditions Labor troubles, despite the
disturbed conditions as to employ
ment, still threaten new dangers to
trade and commerce. -.. =.
Hope to Complete Merger.
The Merchants Bank hopes to con-
sumate a merger with the Dupont
National Bank by April 1, when 1t
will remove to its new quarters IN
the Southern Building and commence
operation as a $1,000,000 trust COM
pany.
It is now the second largest savings
bank of the twenty-six reporting In
response to the call Of the controller
of the currency, showing !2,s44.sSii
Commercial leads the savings banks.
with $3,sS7,917 deposits.
In order to accomplish the Mer-
chants-Dupont Bank merger by
April L it will be necessary to
the Dupont National of the necessary
thirty days time for their ratffic alton
'6f the sale of the stock Of the bank.
"a Of course. the stock sold to the
. Merchants Bank, controlling in
terest, gives ratification of the major
OF the minority stockholders Is re-
ceived, thirty days will have to ex-
pire before the merger.
Loss In Income Taxes.
]. c. Dulin. income tax expert OF
the American Security and Trust
Company, believes that he is entitled
to vacation. Up to March 10 he
prepared between 700 and 1000 in
come tax statements for the bank.
its officials and clientele, as we'll az
for many outsiders, who took advan-
tage of his services.
Mr.. Dulin is competent to speak.
and he declares that from his expe-
ricnce the government will be a very
heavy loser on taxes. as compared
with 1920. when the final figures of
1921 are completed.
The year 1921 was a year of loss
taking: the rich man and merchant
and the man Of moderate means all
took their Losses in that year. A sur
prising fact that developed was that
many of the great moneymakers OF
1920 have nothing but deficits to show
for 1921.
Individuals in many cases, fought