The Washington times., 1925-05-21
D.C.M|ERCHANTS
EXPECTING BIG
FALL TRADE
General Outlook for Business
Good-Large Gain in
Bank Deposits
BY RICHARD HATTON.


general business Improvement indi-
Gated throughout the country by.
an analysis Of the figures submitted
TO the Treasury Department as a
result OF the recent bank call is
the generally expressed belief of
leading financiers Of the city.
Bank statements, when taken
merely as tabulation Of figures,
mean little to the average citizen,
but q general view OF the business
situation Of the country is obtain
able from these statements when
they are considered by experts.
In the figures resulting from the
last call officials Of the Treasury
find reason for the opinion that
conditions In the country are Tar
better than they were at the same.
period last year.
The large gain in bank deposits,
according to one washington
banker indicates that there Is a.
good reserve of money power in
the country. while another financier
explained that the deposit figures
did not mean that the vast amount
of- money was lying idle in the
banks, but did indicate that busi-
ness was good and that capital was
working.
Deposits Not Always An Asset.
Fundamentally, bank deposits are
d liability on the bank which must
place Its deposits out at interest,
make them earn. These deposits
cease 70 be q liability when offset
by sound loans and investments.
An increase in bank deposits il
beneficial when there is q cores
ponding increase IN loans. At the
present time, IL is stated, the In
crease In deposits throughout the
country Is slightly in excess OF the
demand for loans which indicate
that business Is good to the extent
that It has been able, in general,
90 Iduidate. On the other hand,
the demand for loans Is not below
normal and the banks are seeing
20 Il that there IS no initiation.
In the District Of Columbia there
fB reported 8 healthy, normal de-
nland for time and demand loans at
rates ranging from to 6 per cent
and the banks are IN a position to
meet the legitimate requirements of
business. The best Informed opin-
son I'M Washington is that there Is
nothing on the horizon Of the im-
mediate future calculated to change
uresent conditions. Continuation OF
building activity here Is expected
and the banks are meeting the
usual seasonal loans OF business.
No Boom Conditions Now.
Neither IN the District OF Colum-
hta or in other sections Of the
country, according to local expert
opinion, are boom conditions exis-
tent at the present time. with the
possible exception Of the present
real estate activity in Florida.
while boom conditions do not exist
now and are not expected In the
immediate future there is every
win continue good and, so Tar as
washington Is concerned, the pros
pect for the fall is better than It
has been for some time.
In a few months the farmer will
be again in the market with the
earnings from his crops. This is,
always, a general business stfmu-
liant which is felt in practically
ali sections 70 the country and the
purchasing power Of the farmer
must inevitably effect the financial
conditions OF the country as q
whole. Speculation, however, in all
A4A4E8 HCCfA0 IL OC a. AON A4SAC ~
indicates that business is upon
more or less stable basis.
Population to Grow.
The deductions Of experts who
have reviewed the general indus
trial, financial and business condi-
tions OF the country, with especial
reference to their influence upon
business conditions in the National
Capital next fall are that Washing
ton has nothing to fear from the
present trend and that practically
every line OF business activity here
win feel the usual stimulating in
fluence OF the early fall trade.
That Washington will continue to
increase in population and, there
fore, in business opportunity, is the
general belief founded upon logical
deductions from the experience of
past years and a knowledge of the
increased demands for service in
the many Government activities
carried on here. In addition to this
Il IL known that new home sections
will be opened up within the Dis
trict which will appeal to many
people desiring permanent homes
OF the better class, while efforts
will be made to provide living ac-
commodations of the cheaper sort
within the means of all who may
be located here because of work or
Tar THAR NUN rIaa a2arA