Evening star., 1922-07-16
BY I. A. FLEMING.

June bank elearings were ma
terialiy larger than the totals for
May and 16.s per cent greater than
for May asyear ago, while they were
the largest since December, 1890. and
every one will recall that the whole
country was on the verge of defia-
tion. at the top Of the imitation period
While there has been much propa-
ganda work In the interest of bet.
ter business. one cannot go back OF
the clearings as an indication of the
measure of business.
More cars are being placed in
the time of the rail strike, which IL
one of the unfortunate happenings
and also the coal strike. 1t seems al
II the Renaissance Of labor troubles
liable to break loose at any time. Is
especially unfortunate at this time
when business was getting underway
with Increasing speed.
The situation only offers one nope
today and that Is that the worse the
strike situation, the sooner the END
One finds the greatest activity IN
the country directed to the final set:
tlement of the housing problem, ano
the second Industrial development
way equipment section Just as sool
as the. strike now on comes to an
end. and the sooner the better.
Buying by the railroad companiei
will speed up the equipment com
panies and many other lines, espe.
damage to property. continues fol
any length Of time. as now seems
probable.
Building in Washington has beer
going on at an erroneous rate ana II
must be admitted that new construc.
in rents, which have long been oe'
yond reason in the capital city.
It is vacation season in Wasning.
ton and many hundreds Of people are
out Of the city for varied perioos, Du'
business keeps up reasonably Wei
not the old-time spending era put q
good. healthy distribution OF goode
for the season, and frequent trips oil
orders to manufacturers and ooboers
to replenish stocks.
Prophecy FULFILLED.
It is something Of satisfaction to
recall at this time the persistent and
reiterated predictions of summer OF
easy money. of large supply and low
rates made in this column this spring
Reasons were advanced for this be-
lief, largely based on the theory that
the retailer in all lines had learned
the lesson Of the buyers strike. had
had his dose of working on high
priced goods at something OF a sac
rifice. or carrying two or three stocks.
having interest on loans and in
surance ,charges and that the 5obber
and manufacturer in turn would see
to 1t that there WAS not another era
Of overproduction and swollen inven-
tories to be liquidated as best they
in q
tion.
And it proved true.
The retailer has not been a borrow
er to any extent and consequently
bankers have his quota for other
purposes.
To such an extent has the financial
situation eased that the FEDERAL re-
serve system is not able to use its as
sets to good advantage, carrying re-
serves of over 73 per cent
Insurance companies and mortgage
companies have been placing millions
in mortgage loans, 30 that where
this class Of loans were difficult to ne
eotiate months ago. today 1t is only
second. third and fourth trusts that
are bothering builders.
This condition is likely to continue
throughout the fall, and after the
marketing Of the crops.
II by that time there seems to be
any SuTIcit HI ouAA0ihS OPSh
money will probably be easy all win
ter.
June Is has passed. without federal
financing, as expected. Gradually the
credits with the banks from the June
is sale Of certificates are being with
drawn and by August the Treasury
will again make a large Offering to
the public at a low rate of interest
That success will attend the sale
goes without saying.
Want to Hear the Bid.
Many interested bankers and some
other unfortunates with various
amounts of dishonored notes turned
over to the committee. are anxfously
waiting for the coming Of the actual
bid for the 27,500 shares Of railway
common block sufficiently heavy to
control the corporation. with the
proxies that could readily be obtain :
ed from minority shareholders.
It is to be hoped that the bid will
be forthcoming. The buyer might be
a Washington interest and 1t might
not
f. Bank Prosperity,
The Exchange Bank Of Washing.
ton held its semi-annual meeting OF
the directors of the institution last
week. The report of the cashier
showed a prosperous six months
with deposits Of s699.s19.
The surplus was Increased by
$2.500 taken from undivided profits