Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-19


in the line Of industrial recovery which
viii pace the general business better
ment. Inquiries made in security cir
Giles have failed to locate any material
bepeft for the stock market from the
millions distributed to the army of
veterans, so that hope from this quar-
ter was m-founded.
Some of the most conservative oper-
ators hold that the liquidation has net
been sufficiently drastic, that it must
go further and they are not in a hope
less minority.
One cannot find much encourage
ment from bankers who are handi-
capped by the abundance of money
piling up in savings departments on
which they must pay interest but
which they find little opportunity of
using to advantage. Various sources of
income have been lost to the banks. the
mCst important the call money market,
for the reason that the rate Is unin-
viting. Interest rates on bank funds in
reserve cities have been reduced and
everywhere there is a reehng of sails,
just when every one hoped for clear
water and smooth sailing just ahead.
WashIngtOn's Prosperity.
Washington is enjoying a season of
real prosperity in its retailing sections.
The city is crowded with visitors and
they are spending their money freely
while there are no evidences of hard
times on the streets and local residen-
tiers are holding up their share of bust
ness.
Mergenthaler.
A word or two concerning Mergen-
thaler affairs. The shares have gone
of practically $40 from prices current
few months ago.
The statement was made in this COL
umn at that time that Mercy" was
free from debt, that the company was
possessed Of $500, Liberty bonds and
over a cool million in cash.
Everything stated at that time Is re-
iterated with emphasis. Those who
have gone most deeply into the affairs
of the corporation are most enthusiastic
concerning it. The one and chief cause
of depression that is reducing the bust
ness Of this company is the consolida-
ton of newspapers. The late Frank
Munsey was one of the NEST ambitious
of the merger managers and is sue
ceeded these days by the ScrippS- How
ard Co., which has just strapped the
New York World. Every big paper that
is suspended Immediately releases a
large battery of Mergenthaler machines
and these must be aSsimilated before
the used" machines or rebuilt" mar
ket is in good shape again.
That there is any chance of the an
nual dividend rate being cut by bad
year now and then does not seem likely.
Railroads In Trouble.
The railroad situation fails to show
signs of improvement. Burdened with
State taxes, meeting the most serious
competition from bus and privately
owned automobile, with large trucks
competing for freight consignments and
getting their full share of short haulS
and part of the long distance freight.
With millions Of bonds approaching
maturity owned by millions OF investors
becoming nervous over the question OF
the final payment of these liens and
with probabilities Of cutting Of divi-
dends and further losses as a resula OF
this increasing competition, there can
be no question but what the rails are
indeed in trouble. Naturally in the few
buying orders sent into the market they
are not favored.
A Living Issue.
One Of the live issues Of the present
day in the banking business relates to
the habit, admittedly bad, of under
taking the collection of deposits by
banks from customers in other sections
of the city than that In which the bank
is located.
The washington Clearing House re-
Gently gave consideration to this prob
lem and after a one-sided debate ruled
that banks might retain any existing
business of this character but that any
expansion OF the business IN the future
Is not TO be considered.
Recently the A. B. A conducted .