The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-01-21
JANUARY TRADE
|SENC0URAG|NG,
REVIEW SHOWS
National Bank Of Commerce
Says Basis for Confidence
Is Now Clear.

The National Bank of Commerce in
New York, In discussing the money
and market situation, says that the
real basis for confidence in 1922 Is now
clear go"
The bank points out that. notwith-
standing the severe depression during
the past year, purchases by the Ameri-
can people in terms Of physical volume
were sufficient to absorb to large
extent accumulated stocks SO that q
gradual increase in output Of many
classes OF manufactures may be ex-
pected. #, a.. ..
The bank says, In part: Future
needs must be supplied primarily from
current production. This means greater
business activity and explains the ex-
pansion in manufactures which has
taken place in recent weeks.
1.-The general tone of business during
the first two weeks OF January has
been encouraging. The total physical
volume of retail trade is good. sales In
agricultural districts continue slower
than in cities, with trade In the East
and Northeast and in southern Call
fornia cities better than in the re-
mainder of the country. Although IT.
is generally recognized that buyers In
all lines will wisely continue to be
cautious as to future commitments, II
seems probable that there will be q
moderately well-sustained distribution
of goods Into wholesale as well az into
retail channels.
Unemployment Over Estimated.
Unemployment Is Internationally
widespread. but probably Its extent
has. been somewhat overestimated.
Special measures undertaken to lessen
II. particularly public works. are doing
much to alleviate it's worst features.
Farmers certainly will not buy
heavily. but they must have such food
stuffs as are not produced on farms, as
we'll as necessary clothing. They must
buy some farm implements. for even
with the more careful repairing which
Is increasingly practiced, certain pro-
portion Of farm machinery steadily be-
comes unusable. They will buy some
fertilizer. and they will buy articles OF
convenience. and even Of luxury to
some extent.
Railroads have made notable gains
in economy of operation. and improved
credit conditions have definitely bet
tered their outlook, although traffic 10
at present disappointing In volume.
The heavy decline in Tonnage, serious
as Il has been, has primarily been the
result of lessened sshipments Of coal,
iron ore and similar heavy commod-
tiles. Reasonable buying OF rails. cars.
locomotives and other equipment may
be expected during the current year.
Federal Taxes and Business.
1.-THE new Federal tax law. while not
all that has been hoped for, Is more
favorable to business than the proceed
ing act. In q period such as the pres
ent. in which losses have been wide
spread, the new net loss provision will
greatly benefit businesses which are
struggling to re-estabiish themselves.
Net business losses incurred in the
calendar year 1871 or thereafter may
be carried forward and deducted from
the total of the succeeding year and.
IL need be, from that Of the next sue
ceeding year.
"In the year ended June 30, 1891,
actual tax receipts were S4,97S, SOC, 900.
For the fiscal year 1922 receipts are
estimated at So, SOS zoo. 900, a decrease
of approximately 81. 400. 100000. This
reduction in the aggregate OF the Fed
eral tax levy Is largely made possible
by greater economy In expenditure,
and siRnalizes the first definite achieve
ment toward lessening the tax burden
on the people Of the United States. II
expenditures for 1922 arc rigidly held
within the limits Of estimated re-
CENTS the return Of better business
conditions will have received great
impeus."