The Washington times., 1925-08-08
MONEY SEEKING
INVESTMENT
OUTLETS
Savings Surplus 3 Billions
Yearly in u. S. Now Above
industry's Needs
BY RICHARD HATTON


other words, to find a foundation
upon which to base prediction. The
mere statement Of belief or the
retteration of an opinion may have
some psychological effect, but it
proves nothing beyond the fact
that it is, always, better to be an
, optimist than to be a pessimist
and that. generally accepted be-
lief that business will be good, or
is good, undoubtedly reacts to the
benefit of business.
There are continued and reiter-
ated predictions of good fall bust
ness in the United States, however,
that are based upon knowledge and
a study OF Rauses and effects and
those general conditions which
must influence all lines of business
during the coming months. One of
the strongest statements in regard
to business prospects which has
been made recently is by john
Moody, president of Moody's In
vestment Service, and appears In
the Furniture Club Daily. Mr..
Moody is one who believes in find
to base his predictions, and he
says: There is nothing like album
dance. of capital to stimulate con-
fidence. At the present time the
savings Of the American people
available for investment in new
plants, improvements and the like,
or in new securities representing
such improvements, are probably
running at the rate of 5000 900 900
per annum.
Big Investment Surplus
1--WE are producing new invest
ment securities only at the rate
of about $4,000 900 900 annually;
ana this is not enough to meet
the demand. Every man who
saves money has become a capital
list, and is trying TO invest his
savings. In this effort we are ex-
porting capital, or in other words,
buying foreign securities at the
rate of about $4,000. 000,000 an
nually. Still there remains $1,000
100000 of yearly savings to be
placed and the preseRt-day prob
lem is what to put 1t into. ~Some
Of US are putting it into real es-
tate developments and others into
farm improvements, and still others
into new plants and shops. How
ever, nearly every man is looking
for something to buy.
This condition. according to Mr..
Moody, has always in the past re-
suited in a business boom, and he
fails to find anything in the present
situation which would indicate that
there will be q change in the result,
for he says: 81 do not believe
human nature has changed very
much. Building permits have just
recently made a new high record
for all times and this ought to
mean a great number OF new homes
to furnish, along with a great de-
mand for new furniture to meet the
requirements"
While it cannot be said that there
is anything like boom in the re-
tail furniture business, or in any
other business, in Washington at
the present moment, it is a fact
that general business is holding up
above expectations and that the
seasonal sales now being advertised
by the furniture trade have acted
as a decided stimulus to buying, in
view Of the price reductions and
special terms offered Wise in
vestors IN household effects are like
wise investors in securities or real
estate, in that they are always
anxious to take advantage of the
market and purchase at the low
level.
Purchasing Ability Great
In. a larger sense, the purchasing
ability Of the public is today greater
than it has been for some time.
Bank deposits in Washington are
on the upgrade, and everybody is
earning, while many are saving.
There is no possibility of industrial
difficulties here. Even should there
be a disturbance of production with
consequent loss of wages in the
coal regions, the condition would
have no effect upon the purchasing
power of the Washington public.
The foundations of business in
this city are absolutely sound, as
sound as are the economic condi-
tons underlying the general revival
throughout the country, and, predi-
Gated upon this anc the fact that
Washington will, more than ever,
be the center of national and inter-
national interest this fall and win
ter, it would, indeed, take a con-
firmed pessimist to find anything
but good business cheer in the
present outlook.
A general survey of the situation
made among leading financiers of
the District of Columbia today
with a view to asceftaining their
views as to the present and future
trade conditions of the city reveals
the pleasing sentiment that busI-
ness, at present, Is not bad, in fact,
IT is better than usual at this sea
son and that there is every reason
10 believe that the 'fall months will
witness better than normal condi.
lions. This is the conservative
opinion. There are some who ex-
pect the best fall trade in the his
tory of the city. Like Mr. Moody.
quoted above, the optimists rest
their conclusions upon the firm
foundation of a general abundance
of work and money and a desire
to spend reasonable surplus.
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