Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-23
MODERATE GAINS
IN BUSINESS SEEN
Trade Journal Finds Hopeful
Factors in United States
industrial World.

Some hopeful factors are seen by
Dun's weekly. review of business, with
the gains characterized as moderate
and scattered"
THAT some impetus will be given to
trade as strictly Summer restraints are
removed Is logical conclusion" says
the review, but the exceptional con-
ditions prevailing this year make fol
conservative expectations. The expert
ences of other periods when the same
unusual phases were absent cannot be
wholly relied upon as an index to the
early future, yet more cheerful feeling
In various quarters at this time is con-
sidered natural. In certain measure,
the rather better sentiment is supported
by actual gains, although these are only
moderate and scattered, and by nc
means reflect trend to .sard general
uplift. Simultaneous recovery in all
lines after O severe setback is not to be
looked for, but the slight rise in steel
output, the improved weather for crops
and for retail distribution, the extensive
bodybuilding and other construction
programs, and more stability in some
commodities are among the hopeful
auguries. The point has not yet been
reached, even after protracted and
widespread readjustment, where the ex-
cess of price declines has ended, but
the unSettlement Is less acute, and
steadiness of markets might reasonably
be expected to promote buying interest.
Autumn Requirements.
Requirements for Autumn, while
modified by the reduced public pur-
chasing power, are entering more large
ly into the calculations of merchants,
and the continued restriction of manu-
facture is operating steadily to bring
about the closer balance between sup
plies and demands which is essential to
commercial revival. In a statistical
sense, numerous adverse comparisons
are prominent, but such a showing is an
inevitable concomitant of business re-
action, and signs of betterment do not
ordinarily first appear in these indiceS.
AS preliminary to economic recuper-
alton, fundamental changes are neces-
sary and rehabilitating forces have been
In progress for many months. Ulti-
nately, the effects of these basis move
ments should be disclosed in definite
trade expansion, yet nothing In the i'm
mediate situation indicates that the ad-
vance will be otherwise than gradual
and irregular.
Preliminary official data recently an
nounced showed, as was expected, a con-
tinuance of the declining trend in this
Nations foreign trade. At $3.50, 900 900,
the July merchandise exports were the
those of the shorter month of June, and
were about 80 per cent under the $402,-
S61 Of July, 1929. The imports, more
over, fell to the lowest point for the
current year, at $219, O00, 600, and the
decrease from the $685.. $50 of July, last
year, Appropriated 38 per cent. On the
other hand, the excess of exports last
month equaled that of a year ago and
Tor the seven months ending with July
was slightly larger than In the earlier
period. It also has been higher than the
surplus for the corresponding seven
months of 1928.
Tax Reduction.
Much interest was expressed in local
financial circles today in the admins
tration'S hope that the / per cent re-
duction in corporate income tax effective
last year could be continued. Both
President Hoover and Secretary Mellon
came out yesterday with statements say
ing In effect that all factors in the case
were not yet at hand, but there was
hope. that the tax cut could be con-
tinued.
The attitude of the Chamber of Com
fnerce OF the United States toward
branch, chain and group banking, one
of the important economic questions
with which Congress probably viii deal
during the forthcoming session, has been
brought to the attention of Chairman
McFadden of the Hosue Banking and
Currency Committee, which has been
considering the question, by President
Butterworth Of the national chamber.
That this subject is of much inter-
est to the business mems organizations
which constitute our membership we
are aware" said President Butterworth.
. "Of this interest cognizance has been
taken by our board of directors, which
has requested the finance department
OF the chamber to enter upon a study
OF present active trends In ownership
and operation of banks, with primary
reference TO branch, group and chain
banking. Upon the results of this study
will depend further steps in the cham
ber's procedure, such as a committee
study for the purpose of developing a
report and recommendation to be con-
sidered by the membership through
referendum
Meanwhile, the formal declarations
OF the chamber, made through refer
endum vote Of the organization mem
bership, remain in the form which they
took when the proposals of the Nc
Fadden-Pepper bill were brought for
ward. AS you may recall, the declara-
tons then made by very large vote
were In favor of legislation permitting
national banks, subject to the regula-
eAoal Va bAAC VI OilS v,
TO have branches within their metro
politan areas constituting single COM
mercial communities If State banks in
the same cities were permitted to have
branches. The point of view prevailing
among our organization members with
respect to this question would seem TO
appear in the heavy vote cast in favor
OF so-called intracity branches for ma
tional banks under competitive condi-
tons, 2,161 votes being cast in favor
and los votes in opposition"
The current yield of rs representative
New York City bank stocks, based on
market prices, is now at a level which
prevailed during 1925 and exceeds the
yield at any time during the past three
years, despite the tremendous expan-
sion and growth of the banks repre-
scented, tabulation prepared by the
New York Stock Exchange firm of Nc
Clure, Jones 81 Co. reveals. The aver
age current yield amounts to 3.5 per
cent, which Is identical with the yield
on both June 30 and December 81, 1925
and compares with 81 per cent on june
30, 1927: 2.8 per cent on December 81
1927; 2.5 per cent on. June 80, 1928
"a per cent on December 81, 1928; 81
per cent on June 80, 1929; 80 per cent
on December 81. 1929, and ga per cent
on June 80, 1890.