The Washington times., 1923-07-07
F ALL BUSINESS
To BOON, SAY
EXPERTS
New York Fnanciers Deny Any
Reason for Opposite View.
Stocks Only ''FIopping."
BY w. s. COUSINS.
Copyright. 1923. by Cosmopolitan
News Service)

for business activity and prosperity
| in the remaining months of the
year, and have no hesitation in
saying so.
Because of the nature of their
business, that of acting as custodian
of the funds and resources Of other
people, bankers are naturally con-
sentative. Occupying position of
commanding prominence in Amer
lean banking circles is George q.
| Roberts, economist of the National
City Bank of New York, formerly
director of the United States mint
and a banker Of long experience.
| II look for a season of satisfac.
tory business activity in the last
four months Of the year." said Mr..
| Roberts, mainly because all of the
reliable indexes of trade point UNI
mistakably in that direction. The
fact that production has been run
| ming at a very high rate for some
months is no evidence that the
| wants of the American people have
been supplied. -"
Predicts Active Buying.
ION the other hand, wholesale
buying has declined. in practically
every department of business since
the early spring months, as a re-
suit of which the big distributing
and jobbing concerns are. low in
stocks and essential commodities.
Buying will therefore be more &C
| tive lin. the fall and industrial con-
Germs will be running at full blast,
| employment at top notch, and con-
struction work will continue at a
high rate.
II look for a renewal Of the build
ing program in all of the principal
centers of population"
| When asked why so much un-
easiness and uncertainty was to be
seen In business and financial cir.
cles, Mr.. Roberts replied:
Unfortunately, the shadow OF
1920 still hangs over some sections
of the; country, and has not been
entirely eliminated from the minds
Of some men right here in the
financial center Of the country.
1.-The fear that it has engendered
has been used to good effect by
spectators, not only in the stock
market, but also in various com
modify markets. But 1t is ridicu'
lous to compare the present with
1920. There Is no pressure tc
liquidation of goods and payment
of obligations as there was at that
time, no tightening Of the lines OF
credit, no dark chasm yawnine
a repetition of the panicky condi
tons which so completely paralyzed
business at that time
Roberts stated emphatically that
the reaction in the stock market al
this time had little or. no relation tc
present or future developments in
American business.
Stocks 'cFIOpping Around.
1.-THE stock market" he said, "ia
not moving consistently in any
direction; it is simply Hopping
around in a circle; it has doubtless
favorable factors, such as the fail
and rumore Of others, which are in
ness conditions.
/ Last spring a good many people
formed the impression that the de.
mands Of American business and
industry for money and credit would
be enormous, probably beyond the
ability of the banks to furnish
They, therefore, started in to liqui
date their stocks in the market
and some Of them, by all appear.
ances, have not yet completed the
process. The buying power Of the
stock market has been weakened
for the time being at least, and
prices have continually dropped"
Francis H. Sissons, vice president
and economist of the Guaranty
Trust Company, of New York, one
of the best informed business lead
ers in the country, looks for con
tinued progress in the remaining
months Of the year.
/ my own feeling" said Mr.. Sisson
"is there will be a continuation OF
| progress in all departments of busi
ness, though perhaps unevenly sus
tanned. Basic conditions are al
sourgl, and seem to warrant firm
commodity prices and firm money
rates for the balance of the year
Tho banking and money markets
conditions particularly warrant the
forecast Of good business for months
to come. Both Industrial and cror
reports sustain such a conclusion. ,
No More Frozen Loans"
Credit is the life blood of bust
ness. 1t is administered rather
| Ab0A ~ C$AICO Wy NAS
tutions, though the Federal reserve
system has provided an ingenious
mechanism through which the live
commercial paper OF solvent bust
ness houses, when Endorsed by mem
Der banks, may be transferred into
actual currency, in the form OF
Federal reserve notes.
One of the essentials Of healthy
business conditions Is the ability OF
business concerns to pay their in
debtedness promptly at the bank,
so that the funds thus made avail.
able to them can be directed into
other channels of usefulness. 1t was
the inability to do this which pre-
cipitated the frozen loan" situa
ton at the beginning of the last
period Of depression.
New York bankers report a good
movement of funds in both direc.
tons. Maturing notes Of industrial
and commercial organizations are
promptly met, with a minimum OF
renewals, and demand for new
funds is fully up to expectations
Full credit Golfers lay an excellent
foundation for a boom in business.