Evening star., 1923-02-11
Mr.. Melons Optimistic Vie,os
Commended by Many Bankers
Easy Money Period Ahead--Abunda',t
funds for Business - British Taxes
SIOO Per Capita-----Fe,cer Idle ShiP

New YORK bankers. according to ad-
vices. are fully in accord with Secre-
tary MELONS views that the business
outlook for the coming spring is very
good. Most bankers believe that the
present easy money period" will con-
tlnue for several months, and, even
with considerable expansion in busi-
ness and loans. expect comfortable
money and credit conditions for the
greater part of the year
from this it follows that there can
hardly be any likelihood of federal re-
serve DankS increasing the discount
rates for many months
ne undertone of the money market
is much firmer. and local and out-of
town money is readily on offer for
can money market as the rate nears
per cent, and the supply is as
speedily Withdrawn as the rate ap-
proaches 4 per cent. The flood of Of
rtrnhss or outside money during the
past week in New York steadily re-
duced the call rate from A., per cent
TO per cent. but its rebound to Al.
per cent indicated the recall of sup
ply.
Money for Business Needs.
The banking power Of the country
IS SO strong, however. and the liquida-
tioh OF loans so great that there
should be no difficulty in taking care
of all legitimate demands of business
AT the same time the surplus for the
investment market promises to keep
UP.
An interesting feature of the pres
eht investment market is the increas-
ing amount of European money con-
stantly absorbed here. French capt.
tai is an important part of this
stream In fact, the movement is prac-
tically confined 10 German and French
capital.
Position Of the combined reserve
banks speaks favorably for business
expansion. Ratio Of total reserves to
deposits and federal reserve note
liabilities combined stood at - per
cent at close of business February :.
Fhis is up l-l0 of / per cent from
previous week. and compares with
al per cent year ago. IL is 81
pes cent under the peak Of August 9,
lS22. Combined report shows st re-
duction of S33 800. 900 in discounts Sc
cured by United States government
obligations. These discounts largely
cover speculative requirements. They
now total S344.Gf6.000. and are only
Sll 10000 under a year ago.
The twelve Reserve banks show an
Increase of only S4.S94.0o0 in "all
other discounts, chiefly commercial
Commercial discounts now total sega
1000. or $236. $50. 900 less than a
year ago.
Du POnt de NemOurs' Report.
The Improvement in Industrial con-
dItlonS i'll 1922 is reflected in the
annual report Of l.. l. du Pont de
NemourS q Co. which shows net
earnings Of sl3,25i.00G and $9,44J.uUU
available for dividends. leaving a
small surplus for the year.
The company capitalized $31 $50 900
of its surplus by Il 80 per cent stock
dividend last December. The total
assets Of the company. according to
the report, are s259,672.900. with Il
surplus at the end of 1922 of So
O52.2l0. The company also pur-
chased during the year s3.419. 900 Of
its y per cent ten-year bonds. Sc
Curities held by the company for in
ycstment amounted to ss9,4 900 in
cluding its holdings Of General Mo-
tors common stock.
In discussing the burden Of taxa
tion which has been imposed upon
the British people. amounting an
nually to approximately 500 per
capita, certain items were particu-
larly emphasized by tho British debt
commission as showing the drastic
steps which had been taken to make
the British budget balance.
For instance: Pleasure motor We
hicleS pay an annual tax Of one pound
approximately So per horsepower.
The tax on trade vehicles is not 50
heavy.
The buyer of i pint of beer pays