Evening star., 1924-09-24
CHEAP MONEY HERE
FOR REST OF YEAR
Investment Bankers Also
Note Steady Revival in
Business Conditions.
by j. c. ROYLE.
Special Dispa tch ia The Star

'inl'atNh 70 ne Star
CLEVELAND. September "a
money rates are not likely to harden
10 an" marked degree during the re-
mainder of the year. Bond prices and
markets give indication of con-
tinued steadiness. The agricultural
situation is decidedly improved
ihere is prospect of steady and
nealthy revival OF business and in
uustry throughout the country. Those
are the conclusions which many mem
oers or the Investment Bankers AS
Soclation have reached after inter-
changes OF views among delegates
from all sections, lasting for the
three days of their convention here
Lons-Term Issues Urged.
Arrival at these beliefs by men
whose nngers are constantly on the
financial pulse Of the country is of
tar more Importance to the public as
a whole than the settlement OF the
various technical questions which
nave been discussed here. This is
even true in regard to Government
financing. {. 5. Dewey, Assistant
Secretary of the Treasury, left with
many OF the bankers the impression
that refunding of Government war
Obligations would probably be of the
sHoft-teTm cnar2cter.-
Some of the bankers we're not
hesltant about declaring their opin-
ion that the Government should
utilize this period Of low money rates
70 do ITS refunding on long time
basis and get ii out of the way of
investment issues affecting Industrial
financing.
Farm PROFITS Partly paper"
AS to money rates, the general
opinion expressed today is that there
is too much money in the country
today to allow OF any sharp rise in
interest rates. The bankers realize
that part Of the farm profits of this
season still are paper" profits, and
may be wiped out by injudicious
mark citing on the part of the agri-
culturists. and that danger from ad-
verse weather Dis not past, although
II is growing less constantly. Never
theless they are a unit in declaring
that the farmer Will have money this
Fall That surely will mean in
creased buying power. they say. 1t
also will mean that thousands of peo-
pie will be counting on getting or
contriving to get a part of the farm
ers money.
HOtoIhB ON 10 SnSh.
The bankers add that one OF the
most healthful signs OF the situation
is that the farmer does not seem in
clined to part with his cash fool
ishly. Experts in the farm mort
gage field declare there is little evil
dence of imitation or "delusions OF
grandeur" on the part OF the men
who make their living from the soil
Oh - IN
crease in price valuation as a result
of the present harvest.
Demand for farm lands has made
its appearance. however. for the first
time in some years. No period of ex-
travagance or frenzied buying is
forecast. Most of the farmers. re-
ports indicate, are paying their old
debts. buying what they need and
protecting themselves against a flu
ture year which may not possess con-
ditions SO advantageous as 1924
The trend toward mergers and con- :
solidations has been given full con-
sideration by the men assembled
here. who undoubtedly will handle
the financing of the majority of these
combinations. A score of deals in
volving a merging OF interests to cut
costs have been under discussion.
This not only includes the combining z
of various railroads, but the consoli-
dation of groups and individual con-
Germs in the Industrial field
The mergers are directed toward
cutting the cost of production at the
top instead OF AZ the bottom The
labor situation has given rise to lit
tie in any discussion beyond the eN-
preston of satisfaction over the pres
ent increase in employment in and its
attendant Improvement in public buy
ing power
The conclusions drawn by the
bankers would seem to indicate that
business men would not hesitate dur
ing the remainder of the year to con-
tinue expansion Of operations in a
majority of industries.