Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-01
Commercial Review.

! Although no new commercial move
! ments OF outstanding importance have
| either been expected or witnessed. &C
| cording to Duns Review this week
| "the sustained vitality of conditions in
various lines is having constructive
| influence.
Sentiment Is supported said the
| review by the relatively favorable re-
suits In different channels particular
| ~ in certain of the major industries,
| and September begins with prospects
F., mainly encouraging Such adverse as
/ poets as exist hold secondary place.
| being oYcrshadowed by phases OF an
opposite character. and there is q
| strong foundation for the progress that
| normally should come with the Autumn
| season. Indications of pending ex-
| mansion, as we'll as of some actual cur
| rent gains, appear In dispatches from
/ widely separated sections and DIVERSE
| fed trades. while the general agricul-
| tural situation is better now than had
| seemed likely early in the year. The
/ broad significance of that TACT In It's
! bearing on the future is obvious, ana
the renewed activity and buoyancy of
! the stock market apparently Is mani
/ festation of confidence in the business
outlook Reports OF earnings by cor
/ DOGaIfQTlS
over the returns for 1927 in majority
of instances, and the gradually increas-
In1 firmness OF commodity prices,
notably In iron and steel. is strengthen
ing the position of some sellers. Con-
tinued keen competition for orders IN
many quarters not unnaturally TENDS 10
keen profit margins narrow, yet eco
Monies in operation are an ohsettlng
element, and the financial status OF
MANY companies is satisfactory. Ihat
condition. is evidenced by the musu-
ally large total of dividends nov III
course Of disbursement, ana these
settlements IN conjunction with otheI
outlaws OF funds. have maintained
money rates at comparatively high
levels Despite that seemingly retard-
ing factor, however, preparations tor
an extension OF commercial commit
ments are being made, and there Is en-
exnectation that the Fall volume viii
disclose at least an average growth.
with the practical ending OF vaca.
,iors and the accelerated movement OF
crons a new stimulus should be I'M
narted to trade and signs of quicken
/ inc Of demands, both TO cover present
| and forward needs, are becoming more
! numerous
Reserve Bank Credit.
/
"The volume of reserve hank credit,
after increasing rapidly FOR seVeral
months. declined in recent weeks ac-
cording 10 a statement by the feoeta1
Pcscrve Board published today, nut
Was stlll At higher level for this sea-
son of the year than at any tnle III
the past six years.
Compared with year ago pills ana
securities of the reserve banks were
Iaroer hv about 100000 900, refiecting
greater outflow Of gold. offset IN part
bv n decrease In the demand Tor cur
rercv Growth of member bank credlt'
which has been rapid for the year. mas
not given rise to an increase in re-
serve requirements. and consequently
In demand for reserve hank credit py
member banks, owing TO the tact tnat
the entire growth IN member bank &C.
posit liabilities has been In time de-
posits, while, owing largely to gold eN-
ports. net demand deposits showed
decrease for the year.
Since the middle of May loans and
Investments of member banks in lead
ING cities. which have about so per cent
of the loans and investments or all
member banks, have declined whether
this decline is representative oil changes
IN the condition of all member hanks. "
is impossible to say, The decline Tor
banks in leading cities has represented
reductions IN the banks holdings OF
investments and In their loans on Sc
cnrltes. Notwithstanding this liquida-
ton the banks of the country approach
the season of heaviest demand for bank
credit and currency In connection with
the financing of the movement or crops !
10 market and of the Autumn trade
with greatly increased volume OF
loans and investments and heavy
indebtedness at the reserve banks.
"Total reserve bank credit outstand-
inc i'm the third week Of August aver
aged 81 .470 600 600. showing an increase
of s370 900 600 over the corresponding
period In 1927, This increase In re-
serve bank credit was brought about
hy A loss OF s4s7 900, 900 from the |
eountrys stock of monetary golc, offset |
IN nart by a decrease of 100000, 900 In |
the demand for currency. Changes for |
the year in other factors In the reserve |