Evening star., 1923-05-31
NEW TOP REACHED
IN BANK CLEAR|NGS
Washington Figures Show,
Gain of S61 100000 in
Past Five Months.

Bank clearings OF the banks OF
Washington for the month of MAY.
ending today, We're $1o1, ,40s,0ss, the
highest point touched this year This
Is an increase over deposits for the
previous month of $1O,706,s48, and a
gain of more than s61,000,00O for the
first five months of the year, as com
pared with the same period of 1922
Compared with clearings for the same
month last year. which were $S7,-
600 600. The greatest amount of
ciearings for any month up to May
this year was in January, when d
total of $94.226.703 was reached.
The large increase for May is di-
rectly traceable to the payment OF
taxes. redemption of liberty bonds.
the purchase of more than S3.0O0.000
worth of the new $4.000.000 Washing
ton Gas Light bond issue and the
subscription to a large portion of the
Potomac Power Companys latest
bond issue by Washington investors.
1t is not thought that Shriners have
arrived in sufficiently large numbers
to date TO have affected the clearings
materially. and it will be at least two
weeks before true gauge can be
had on the money left in the city by
the visitors.
Reserve Bank Notes Caution.
That there was a slowing up of
business during April, as compared
with the previous month, is pointed
out in the monthly review of business
and agricultural conditions in the
fifth district. just issued by the Fed
eral Reserve Bank of Richmond.
which includes the District of Colum
bia. This falling off is due, accord
ing to the report, to a hesitancy and
uncertainty about business prospects
and recollections of the experiences
of 1919 and 1920. Part of the decrease
following the pre-Easter weeks.
Many thoughtful observers" the
review said. believe that the expan
sion in industry and trade and in con-
struction lines has been too rapid.
and lately advancing prices of labor
and many commodities have not only
caused concern. but have resulted in
holding up some construction plans.
The experiences OF 1919 and 1920 have
not been forgotten by either sellers
or buyers. The first determined re-
sistance against mounting costs ap-
pears TO have been made in the build
ing industry. in which advances have
been perhaps greater than in other
lines.
High Costs Resisted.
This resistance has taken the form
of indefinite postponement of the erec-
tion of a number of buildings that
doubtless would have been built II
prices of labor and material had not
advanced SO rapidly and to such high
levels. How far this resistance will
spread cannot be anticipated. nor to
what extent. If any. it will flow over
into other fields in addition to the
| building industry"
Seasonal increases in outstanding
loans to customers. decreased deposits,
and increased rediscounts in order to
provide the needed accommoda tions for
| from member banks, the review contin-
ued. Savings in commercial banks
show a slight decline for the first time
in many months, but savings reported
! by savings banks show a continuation
of the steady increase that has been in
evidence since 1920. The number of
business failures in the fifth district In
April was the lowest in the district since
september. 1921, being 41.9 per cent !,
fewer than during April, 1922, and 20.9
per cent less in the aggregate of liabili-
| ties involved.
Labor Scarcity General.
Labor is scarce in all lines except
clerical help, farmers and contractors
| finding it especially hard to secure
the help they need.
| Coal is being produced in sufficient
volume to meet all needs, but there
| have been no recent changes in prices
to consumers.
| Textile mills are receiving very few
! forward orders, but they are busy \
| filling orders previously received. and
| the managers believe the present lull
! is temporary.
| Cotton prices have declined sharply
/ during the past month. but it is to
| be noted that very little cotton re-
mained in the hands of the growers.
! Cotton consumption in April was less
/ than in March. but was so per cent
| above consumption in April, 1922
j Tobacco markets closed during
April. only little low grade tobacco
| having remained to be sold The new
crop is being planted. but cold wealth
er had damaged plant beds to a con-
| siderable extent.
| Nearly all crops are getting a late
start this year because of unseason-
ably cool weather, and it is yet too
early to form any opinion as to the
! crop prospects.
| New construction work for which
| permits were secured in April broke
! all previous records for both number
4 of permits and estimated valuation,
| but many projects have recently been
postponed because of high costs, and
! the outlook for the building indus
! try has become uncertain.