Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-27
TURN FOR BETTER
IS SEEN BY BANK
Cleveland Trust Co. Expects
Gradual Recovery During
Next Year.
snecial nisnatch to The Star.

Special Dispatch to The Star.
CLEVELAND, November 27.-Recent
favorable developments in finance and
commodities are pointed out by the
Union Trust Co., Cleveland, as indi-
eating that a turn for the better in
general has definitely appeared. The
bank, however. expects a gradual i'm
proving trend in business over the first
half of 1882 rather than any immediate
rapid recovery.
Among the constructive events which
signify that the worst is over in the
depression listed by the bank are the
return of public confidence in banks,
the formation of the National Credit
Corporation, the Presidents announce
ment of home loan discount bank
plan, improved sentiment in the bond
and stock market and increases in
prices of basic commodities.
THE Presidents recent proposal for
the establishment of home loan dis
count banks will prove, in our opinion,
of practical Importance in relieving the
financial situation and stimulating a
revival of business, and, further, pro-
vides grounds for the public's return
ing confidence in the Nations bank
ing structure" says the bank In Its
magazine, Trade Winds.
Aid for Banks Seen.
1.-THE plan should have profound
effect in the direction of relieving the
situation of thousands of banks and
building and loan companies through
out the country, especially in the
smaller towns and farming commu-
mites. A secondary result of the new
plan might well be the immediate
stimulation of home building, not only
because borrowing on mortgage loans
would make available more funds for
real estate and building construction
loans, but because the increased liquid
ity Of mortgage loans would make them
more desirable investments than they
have been in the past.
1.-THE program of home loan discount
banks, together with such further relief
Credit Corporation, provides a real
foundation for the return of general
confidence and the revival of general
business.
ut cannot be expected, however, that
a general revival of business will i'm
mediately materialiZe. It is true that
apparently the worst is over. It is also
true that many more favorable signs
have appeared upon the business no.
rlzOn curing Cne past lew weeks IMAM
have been seen for many months.
But, on the other hand, it must be
remembered that as far as actual cur
rent volumes and profits are concerned
business is still in the trough of a
severe depression of worldwide pro-
portions, and considerable length of
time must of necessity elapse before
business on the whole can once more
attain satisfactory level Of opera
tons.
Foreign Situation.
1.-THE foreign situation is full of I'M
certainties which may have a retard-
ing effect upon business recovery in
the United States. It is true that
since Great Britain went off the gold
standard business activity there has
definitely increased. But in France
defation is continuing and unemploy-
ment is increasing Furthermore the
Ger.nall situation lends a feeling of
uncertainty to the whole European
picture.
Until the momentous question of
reparations and international debt is
somehow adjusted in conformity to the
changes which have taken place in
price level and business volumes the
whole situation will of necessity be re-
Elected in conservatism and hesitation
in American business, especially with
respect to foreign trade"