The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-10-01
BANKERS SPEAK
ON BUSINESS
OUTLOOK


for their individual views on the
business outlook. A number of off,
GERS of the association and delegates
to the convention expressed them
selves as follows:
Thomas r. Preston, president
Hamilton National Bank, Chatta-
nooga, Tenn, president American
Bankers Association: ANY COM
ment On the business situation must
take into consideration the fact that
we have a very different economic
panorama to consider than only
few years ago. / do not mean tol
imply that fundamental economic
priSsciples have changed, but the
dimensions of many phases of bust
ness through which these principles
work are very much changed. The
reduced value of the dollar means
that it takes numerically more than
before to do the same amount of
work and we therefore must get
used to larger financial figures.
Again, in many fields Of commerce
and industry larger business units
are proving increasingly effective
and are being built up through
mergers and engagements of
capital.
Greater Credit
"Yet again, a larger proportion
of economic enterprise is In the
corporate form than formerly, and
this has led to larger supplies Of
securities. At the same time more
people are familiar with corporate
securities both through investing
and through employment by cor
porations which have also largely
fostered employe investment In
them All these factors have led
tn larger volumes OF transactions In
tha securities markets and the ap-
nIication of greater volumes OF
credit to this purpose than when
securities and investors were FEWER.
$50 fast have changes come
about that many observers have be-
come startled or even alarmed at
the magnitude of our business flg-
,Irea TODAY. But what would nave
heen limitations under former condl-
tons. today largely represent the
normal dimensions of these larger
IT believe the natio mis- econom-
icallv sound in virtually all depart
ments. Agricultural prospects are
good; industry and employment
except in one or two lines, are ac'
tive and commerce Is vigorous. In
ventories Of goods are not sWoIen'
and although prices generally are
somewhat higher than year ago.
1 do not think they have reached
| the point of initiation.
/ S1TIl,~ of0 market nroEentS
mixture of sound and unsound
speculation and it is to be hoped the
better phase will prevail. Interest
| rates are higher because of the very
active competitive demand that has
| developed coincidentally with the
| shrinkage of our reserves through
| gold exports. but there is as yet no
| actual money stringency and / be-
lieye the supply of credit will be
ADEQUATE to carry on the nation
| fall business. The political cam
pagn has not been an unsettling
| influence in business.
| 81 feel that the present era may
/ be considered one of reasonably
well distributed prosperity and that
the year will continue along the
same lines"
Urges Caution
| Craig B. Lakewood vice pres
| ideht Union Trust Company, Chi
| cago, first vice president American
Bankers Association: THE present
credit situation is the result OF
changes in fundamental factors
and is not simply an artificial situa-
| ton. Although it is true that it
possesses some serious possibilities
there is no doubt but that normal
1 l. xskI
checking the good business to which
we have become accustomed in
this country. Fortunately, the
| tightening Of money rates has not
| depressed general business up to
this time, nor have we seen infla-
| ton in the prices Of consumers
| goods. With the exercise of the
proper degree of caution by the
| banks Of the country, and with the
| fundamental soundness and flex
Utility Of our Federal Reserve
System, we should be able 20
smooth out any uneveness in the
present credit situation"
John G. Lonsdale, president Ma
| tional Bank of Commerce. ST.
Louis; second vice president Ameri-
can Bankers Association: "Condi-
lions appear favorable for increased
trade and extended Industrial activ.
| ity during the fall months of this
year, due chiefly to the new wealth
produced by agriculture, the basic
industry. Virtually all sections of
| the nation have shared in excellent
crops, records having been broken
in many localities. Corn production
has reached new peak; wheat gen
orally has exceeded expectations:
cotton at this writing has favorable
prospects; there is an abundance of
forage crops, fruits and vegetables,
due to favorable weather; dairying
Is experiencing a profitable era.
and livestock and produce are pay
ing good returns. The increased
purchasing power of the farmer is
already being reflected in many
lines and should extend eventually
to virtually all forms of business.
Trade Active
"Other favorable economic fac
tors, too, appear in the picture
such as moderate inventories, sus-
tanned building operations, activity
in the iron and steel business and
automobile manufacture, but the
chief consideration is the improved
conditions of agriculture.
with the banking situation
fundamentally sound, it appears
there will be ample credit avail
able for seasonal demands. Firm
money rates may retard some bust
ness activity but it is anticipated
that this will be minor influence
in comparison with the demand re-
sulting from. low inventories and
an increased agricultural purchas.