Evening star., 1931-06-18
ID. c. BANK RESERVE
HIGHEST IN HISTORY
Lanier P. McLachIen Tells
Convention of City's
Prosperity.
BY EDWARD C. STONE,
star Corresnondent Of The Star

HOT SPRINGS, Va, June 18.-
Washington banks have the largest
cash reserves in their history, total dol
lar volume of private construction per-
mits issued in the first five months of
1881 exceeded those during the same
period last year, automobile sales arc
far ahead Of other cities, while depart
ment store trade and other business
has more than held its own so far in
1881, Lanier p. McLachlen, president
of the District Bankers Association,
told more than 200 delegates at the
opening Of the thirteenth annual con-
vention here today.
In a brief picture Of the economic
situation in the Capital Mr.. McLachlen
declared Washington business occupies
most fortunate position In this period
of retardment. This Is due to the huge
Government pay roll and the extensive
ernment, he said. There are 10000
persons on the pay roll of the Federal
and District Governments, with an an
nual salary total of $178,800, 900, or
81 300, 600 on each semi-monthly pay
roll. Because of the steady income
from this source Washington does not
as a rule have extremely depressed or
boom periods.
Cash Waits Prosperity Return.
The March rs, 1881, call Of the con-
troller of the currency shows bank de-
poSitS in Washington of 1921 ,965 .977, as
compared with $267, ,718,307 for the call
of December 81, 1880, and $256, ,339.-
86581 for the call of March 27, 1880,
the banker added.
President McLachlen stated that the
huge cash reserves now being held in
the Washington banks are ready for
the return of prosperity, which so many
say Is Just around the corner"
The largest and most important pri-
vate industry in Washington is the real
estate and building business, the
speaker said. He then presented the
| following interesting comparisons for
! the first five months Of the present year
as against figures for last year covered
in the same period:
Total dollar volume pri-
vate construction per-
mits issued. January
! May, inclusive, $780,. $16,2S1, 100
Same for 1881. ......... $15,170, 90
| Total dollar volume resi-
Dental permits issued,
January-May, inclusive,
1880 ................. $8,12s, $50. 90
Same for 1881. ......... $i1,727, ,1os.oO
New home sales, Janu-
ary-May, inclusive, 1880. 452
Same for 1881. .......... 428
Apartment house units
started, January-May,
inclusive, 1880. ........ 598
Same for 1881. 1.......... 1892
III Per Cent Vacancy.
President McLachlen quoted from a
report of the Washington Real Estate
Board which showed that only ~ per
cent OF the apartments in the Capital
are vacant, all sizes of apartments being
considered, this being a better record
even than in pre-war days. Turning to
the automobile and other business, the
association official continued:
With respect to the automobile busi-
ness Washington is ahead of other
cities in the percentage of increase Of
sales OF both new and used cars. Dur
ing the first five months of 1881 there
were sold in Washington 1O,970 new
automobiles, as compared with S,938 In
1880, this being an increase of 2,O32
units, or approximately % per cent.
Compared with the same period for
1929, the boom year, when lO117 new
cars were sold, this represents an in
crease OF 853, or approximately 8 per
cent.
During the first five months of 1881
there were 1891 used cars sold in
1880, or an increase of 545 units, ap-
proXlmately 3 per cent, and as COM
pared to 1880 in 1929, an increase of
2,3O9 units, or approximately 13 per
cent.
THE Merchants and Manufacturers
Association says that department store
and other business has more than held
its own during 1881 as compared to a
year ago, and the situation is promis-
ing"
Association Lauded.
Summarizing the work of the District
Bankers Association during the wear.
Mr.. McLachlen recalled the brilliant
success of the Central States Bank
Management Conference held in Wash
lngton, the able manner in which Al
bert S. Galley has kept the associations
finances in fine shape during his twenty
first year as treasurer, the particularly
important work accomplished by Chair
man Francis @. Addison, jr., of the
Committee on Law and Legislation, and
tpe support accorded the Community
Chest and the Greater National Capital
movement.
In concluding his report. the retiring
president submitted to the incoming ad-
m1nistration for consideration the fol-
lowing legislation considered of particu-
lar importance to Washington:
l. Bill H. r. 10560, ITO amend sec.
ton % of the Federal Reserve act, max
ing IL unlawful Tn circuIata foIea ,-,,v,aor,