Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-24
BANK SEES BETTER
BUSINESS OUTLOOK
Domestic Picture, However
Is Largely CoIored by
European Events.
Special Dispatch to The Star.

Special Dispatch to The Star.
| CLEVELAND, July 24.-Some favor
able signs are appearing in the domes-
tic business picture. but the general
outlook is colored by European devel-
opments. according to the Union Trust
Co. So closely are conditions in Amer
lea interviewer with those Abroad that
the outlook cannot be considered inde-
pendently of the international situa-
ton, the bank says in its current sur
vey of trade
Among the favorable indications
pointed out are few satisfactory earn
ings statements. some firmness in COM
sales and reduction in commercial in
| solvencies
Ever since President Hoover pro-
posed the moratorium new developments
have followed in rapid succession" says
the bank in its magazine Trade Winds.
There is no question but that the
Presidents expression of this country's
| willingness to endeavor to assist in the
solution OF the reparat1onS problem has
brought renewed hope that a solution
may eventually be found. BY single
stroke the critical attitude to the United
States which has been developing in
Europe has been transformed into good
WILL
Some improvement Seen.
] Discussing the domestic situation, the
! bank continues:
THE general volume of business dur
| ing June showed little, if any, improve
ment over May, and production figures
in most lines remained at low levels.
Il must be remembered, however, that
| this was quite in line with expectations,
q NJ l1tlI 1Ixy
develops at this time of the year.
1T Is also encouraging to note signs
of price sterilization in some fields. In
spite OF continued severe declines in
prices Of agricultural products COM
modify price indices, on the whole,
have shown some upturns during the
last month. and at this writing aver
ages have held a small per cent of the
gains made. Furthermore, advances
have not been confined entirely to basic
commodities. Cigarette prices, for in
stance, have been advanced by all Of
| the more important manufacturers, and
these advances have, to a large extent,
already been passed on by retailers to
the buying public.
Better Dema nd Ahead.
Automobile equipment and accesso-
rieS companies are not, on the whole,
| suffering as severely as might be ex-
pecteQ, Que 70 the TACT that the larger
percentage Of cid cars in use this year
is being reflected in the larger replace
ment demand. Gasoline consumption
| figures show that, in spite of the de-
| crease in production of new cars, just
as many cars are being operated this
| Summer as were last Summer. The tire
trade particularly is benefiting by this
situation. and during the last two
months has shown more than normal
seasonal improvement
1T is obvious that if the present rate
of car usage continues to be maintained
| the wearing OUT of old cars will inevita-
, bly, produce an increased demand for
i new models in the comparatively near
| future. 1t is this situation which leads
some observers 10 predict substantial
| upturn in the automobile field this Fall
June statistics covering retail trade
show improvement in some lines Ac-
cording to the Wall Street Journal.
sales of SO of the leading chain store
systems and mail order houses in June
showed a decline of only % per cent
below June Of last year, whereas the
decline for the first six months was
"A per cent"