Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-04
TRADE GAINS SEEN
FOR REST OF 1880
SeasonabIe Weather to Help
Increase SaIes-FurtheE
Price Cuts Likely.
BY EDWARD c. STONE.

BY EDWARD T.. STONE.
The modern improvement now being
witnessed in retail distribution under
the stimulus of more seasonable weather
will undoubtedly continue during the
balance of 1880, says a current survey
Of the Standard Statistics Co., parts OF
which follow:
THAT the all-important aggregate of
Christmas holiday buying will fully
equal the levels of a year ago, however,
is not indicated Retail price schedules
have been lowered to some extent, but
not wholly in proportion to the decline
in wholesale quotations, and further re-
adjustment downward will likely be wit
messed. Inventories are generally in q
sound position. Considering all factors
operating this year toward the restric-
ton of sales and profit margins, 1t is
increasingly apparent that income,
both for the final quarter and the full
year, will fall materially under that of
a year ago. Better than average returns
are expected for organizations operat-
ing in the 5-and-10-cent to 81 field, al
though even here, except in occasional
cases, 1890 profits will be smaller than
those of 1929.
t"Current prospects are favorable for
continued moderate gains in retail dis
tribution by the Spring of 1881, reflect
ing the anticipated gradual upturn in
business. Profit margins will probably
continue to be restricted for some time
to come, but absence of inventory losses
should allow net income of most retail
distributors to closely approach, or even
equal, 1880 levels in the opening half
Of 1881"
Plat Raps MacauIay Idea.
Addressing the School of Business at
N,IV at1fo TTTafxf ifry a
vice president of the Marine Midland
Corporation and former vice governor
Of the Federal Reserve Board, expressed
disagreement with the proposal of T. B.
Macaulay, president of the Sun Life
Assurance Co. Of Canada, that the Fed
eral Reserve Banks purchase $500, 000,-
600 of Government securities.
Such action, instead of restoring
prosperity and the former price level,
would result in the decentralization of
banking in the United States without
accomplishing what its proponents think
it would accomplish" Mr.. Plat de-
clared.
Banks that are members of the Fed
eral Reserve System can obtain reserve
funds from the Federal Reserve Banks
as soon as there is a demand for them
at rates witch are lower than at any
time since the war, and at New York
and Boston lower than at any time since
the Reserve System was established.
There has been no def1ation OF
credit in this country and the total
loans and investments of our banks are
considerably greater now than they
were year ago-of reporting member
banks about $300000,000 greater, Oc-
tober %. Some economists believe the
reserve system has already gone further
than it was wise to go in the purchase
of Government securities, the chief eff
feet of which is to lower rates on paper
which has an open market and in the
financial centers," Mr.. Plat asserted.
Cleaned in Financial District.
Robert ". Fleming, president of the
Riggs National Bank, celebrated his
fortieth birthday anniversary yes
terday, receiving hearty congratulations
from the few who knew about the
event. He is one of the youngest
bankers in the United States to head
an institution the size of Riggs. He
has enjoyed all the honors in the gift
Of the District Bankers Association and
has already been accorded high honors
by the American Bankers Association.
Rome c. Stephenson, president OF
the American Bankers Association. re-
Gently suggested the ACCESSIBILITY of adj
hitting mutual savings banks to the
Federal reserve system. He believes
that such membership would be profit
able both to the banks and the system
Mutual banks in New York State are
reported to prefer to remain as they
are, although they have taken no vote
on the matter as yet.
z. A. Pierce & Co. announces the
consolidation of their two Boston ofices.
The brokerage concern, which has
maintained an Office in Washing.o n for
many years, recently acquired the Bos-
ton firm of E. H. Hamlin & Co., and
also absorbed the Boston Office of
William Schall & Co.
Washington bankers reported today
that special interest in the building up
of savings accounts is still being main
tanned here. The savings departments
in practically all the banks are show
ing unusual prosperity.
Local bankers expressed the belief
today that the election results. regard
less Of the outcome, will have practically
nothing to do with business conditions
in Washington. The return of the
present members of Congress in Decem-
Der, however, will be distinct business
help to the city.
At the meeting of the directors of
the d. Fender Grocery Co, the regular
quarterly dividend of 87i5 cents per
share was declared on the class "A"
stock, payable December to stock
holders of record November 20.