The Washington times., 1923-03-29
BUSINESS BOON.
HEALTHY, SAY !.
I. BANKERS
Expansion Wide With Produc-
ton Keeping Pace With
Loans.
BY GEORGE r.. M'TNTYRE,
Financial Edition Chicago Evening
American,

Financial Edition Chicago Evening
American.
written for COSMOPOLITAN News
seryice.)
CHICAGO, March 29.--Business
has expanded largely and Is still
expanding, but the expansion is a
healthy one, due to actual demand,
which thus far greatly exceeds the
supply. The market turnover Of
products is fairly keeping pace with
credits in the banks and leans are
being promptly INST. Long term
credits are not being asked and the
banks are not granting any. Bust
ness liz moving naturally and in
harmony with bank loans, and no
effort is being made to force it.
Thus Is summed up the opinions
of two of the most conservative
bankers in Chicago Arthur Rey-
holds, president of the Continental
and Commercial National Bank. and
Melvin Al. Traylor, president OF the
First Trust and Savings Bank.
Both agreed that while business,
today Is in q healthy condition, its
continuance in that condition and
the avoidance Of initiation are en-
tirely in the hands of business
heads.
I'VE have no initiation, as that is
understood in business today said
Mr.. Reynolds. I'VE have a very
rapid and large expansion, but no
greater than the situation seems to
demand in view of the increased &C.
tivity. We are not making long
term loans, and our short.term ones
are carefully scrutinized to be Ger
tain that they are within the limits
of. legitimate current needs In busi-
ness. ] do not consider loan de-
mands unusual in-view of the times.
$50 long as business proceeds
along these careful and conservative
lines we are not in danger Of that
condition known as initiation, which
involves the tying up of large loans
In the banks on q falling market.
1t all depends on how carefully bust.
ness ID conducted.
'At the same time, we have been
expanding rapidly, and the situation
requires careful handling on the
part of business. The banks are in
excellent condition, with plenty of
loanabIe funds, besides a large por-
ton of quick assets in the shape
of short-term Government Securities
that can be easily liquidated at any
time. Loans made OF the Federal
Reserve Bank by member banks are
not large, and consider the situa-
ton in all aspects as a fairly healthy
one"
TITS all UP to business whether ex.
pansion becomes initiation or not
said Mr.. Taylor. Our present pros
perity IL really due to three factors.
They are the building boom, the rail-
roads, and the automobile industry.
These three are largely responsible
for the great forward movement in
business Building boom has result
ed in high prices Of material and
Of wages. That industry and the
needs of railroads account for the
stimulation OF the steel industries"
IF we so along. carefully and
make no effort to expand beyond
keeping pace with the business tide,
I think we may look for steady bust
ness running into next winter and
perhaps until next spring. But il
business becomes greedy and imbued
with the idea that tremendous
period of prosperity has set in, and
acts on that principle in the effort
to corral all Of that prosperity that
Is possible now, we may look out
for bump, and it may come not
later than the fall"