Evening star., 1924-06-22
BY I. A. FLEMING.

considering their dividends and giving
thought to securing desirable loans at
rates that will permit of the necessary
profit for the payments of regular dis
tributions.
And that part of the problem is also
up to the man who is more or less de-
pendent on income. the safe placement
of funds at rates that will yield the re-
quired income.
There is no question but that safety
has taken precedence in the matter, both
with bankers in placing their funds and
with the investor in selecting his lists.
This has been amply demonstrated by
the advances in liberty bonds, which
have moved to new high records, while
the MELONS, as Short-term Treasury
notes are termed. are keeping pace in
the advance.
Bankers have practically been de
prived of the Wall street call money
market by the cut in the ruling rates.
following the clipping OF fractions from
federal reserve bank rates, to II.
per cent basis. a rate that is not at all
satisfactory even for Il secondary re-
serve.
Bonds have moved un until all safe
issues have shown sharp advances, and
where there is danger of a sharp re-
action with any Improvement III the
general business situation that Would
call for the use of money at all freely
in the regular channels OF trade.
Every one admits that there is tlull
in trade, to put it mildly. and that the
political situation is not as clear as theN
would like it, but employment Is Stlll
very general; there have been few i'm
portant Shutdowns, railroad earnings
are satisfactory and there Is too much
money available for legitimate enter
al low serious de-
preston in business.
CnSeaSonable weather has been much
to blame for the business let-up, not
right now. but through the belated
spring, that was lost somewhere between
winter and summer.
Some Cheering Signs.
The situation is not without some
encoura cement. even the la tie buSl-
ness of the department stores promis-
ing to bring up the level of previous
years in profits. should the rest OF the
wear he attended with seasonable
weather.
The trade slump is by no means
general Moreover, uncertainty in
political matters always causes un-
easiness and a let-up. The uncertain
ty is nothing more than that which
usually attends presidential cam
paigns.
Structural steel is in better demand
and has been for two months. Amer
crease in business so far: automobile
Industry has slowed down but there
Is nothing like the depression in the
trade that was predicted.
Local Investments.
In the local field of investment
Mengenthaler Linotype. Railway COM
mon and preferred and some of the
bond issues have felt very materially
the result of the surplus money seek
ft.
Boston, always a strong sponsor OF
Marcy" has been steady buyer dur
ing the past week. support beng
somewhat increased by local circu-
lator that gave investors generally an
insight into the condition OF the pre-
mier tYpeSetter.
Railway common moved up to
new high level on limited buying. Lo-
cal people cannot forget the millions
accumulating in escrow in connection
with the prices for electric light ana
power, which they cannot but be
lieve will some day accrue to the
partial benefit, at least, of the com
mon shareholders. Moreover, ii pays
s per cent dividends on par valuation,
800 a share and this return is in 1t
self deSira BILE.
The preferred also pays ) per cent
on 500 shares, selling around - = ,
the distribution being considered alb
solutely safe, always with the Po-
tomac company back Of the Washing
ton Railway and Electric Company
1t is expected that a new issue OF
Railway per cent bonds viii be mar
keted within the present week, PROB
ably within a day or two.
Bankers are looking for the issue 10
be brought out at about 80 and are
placing commitments for large
amounts. as they confidently expect
the investment public will be ready
TO absorb all offered at l02 or better.
Several issues of local bonds have
large fractional advances.
Discuss Legal TechnicalitieS.
Despite the warm weather there
was nearly an average attendance
at the weekly luncheon of local
When the iced coffee had made
every one as comfortable as possible
Victor B. Deyber. chairman, sought
new developments of the week; or
ANYTHING for the good of the order.
Unfortunately for this column, the
twenty minutes discussion that fol
lowed the first response was entirely
anent technical matters, G1erins
nothing of interest for the layman,
at least from d layman's point of
view.
City Club will be continued through
out the summer, just an hour being
spent for. the luncheon and BIS.
which are thoroughly enjoyed Bank :
ers are still laughing at an offer OF
trade a piece of ham for pickle,
made a week ago.
Finally Admits Depression.
Walter w. Head, president of the
American Bankers Association, has
finally been convinced that there has
been a Stacking up Of trade In ad-
dressing the Illinois bankers con
vention on Thursday of last week, he
stated that the nation is confronted
by a material and psychological de-
preston, but by no greater dlfh-
culties than we have overcome IN the
following the declaration of war and
our activities in connection with
great industrial operations, followed
hv the boom and imitation periods Mr.
Head concluded as follows:
are face to face today with some
thing more than the necessity OF DO
ing business on pre-War haslS. we
are forced to forget the dreams OF
Yesterday. We suffer today from de-
preston of two kindS-materia and
psychological. The latter is, in many
cases more devastating than the
first.
Frum a Northwest Viewpoint.
.1 shall make no attempt to min
fmize the extent of our material loss
IN the last four years. No man ac-
ouainted with conditions in our agri'
cultural districts can minimize the
seriousness of the economic depres-
eton. On the other hand, too fire.
Snent1v during the recent period OF
depression, the more devastating loss
has been the loss of confidence IN oui
Individual power, the loss or conn
aNnce in the ability and integrity OF
ssHr Nss!ows.
AOf what are we fearful today
What is there, in today's crisis, tha'
is more serious. that we are less able
TO surmount than the crises of for
a SWeDI