Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-04
BUSINESS OUTLOOK
IS MORE HOPEFUL
Federal Reserve Bank BuHe
tin Reviews Conditions
in Fifth District.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
In its monthly review of credit, bust
ness and agricultural conditions in the
Fifth Federal Reserve District, made
public by the Bank of Richmond today
1t is stated that there is a more cheerful
outlook in financial circles, reserve credit
is being used more extensively, condi-
lions in the textile industry are rather
better than IN other sections of the
country, and there has been a marked
increase in the number of Federal Re-
serve notes in circulation.
From January to mid-Febrlary. the
review says, is a period Of stock taking
and business is relatively dull in most
years, and this year the slowness Of
trade was more pronounced than usual.
New business was harder to cecure than
in any other month since the depression
began in the Fall of 1929, (Specia .ly in
retail trade and in construction work.
There were no marked developments
In banking in the Fifth district from the
middle Of January to the middle of
February, the review says. hut there APP
pears to be a more cheerful mental out
look since the passage of the Recon-
struction Finance Corporation Act by
more particularly in anticipation of the
passage of the Glass Steagall bill
Federal Reserve credit is being used
much more extensively than al this time
last year, and the volume of reserve
notes in actual circulation is especially
large. due doubtless to boarding OF cur
rency by nervous persons who have
drawn funds from their banks. This
has materially reduced deposits in the
banks of the district, in comparison with
deposits year age.
Debts TO Individual Accounts.
Debts to individual accounts i'll the
district in the four weeks ended Febru
airy 10, 1882, showed a seasonal decrease
in comparison with debts in the four
weeks ended January Is, 1882, and
totaled IT'S per cent less than debts
in the four weeks ended February II,
1881.
Employment conditions not only failed
to improve in January but appeared to
become somewhat worse as construction
work declined still farther Coal pro-
duction last month was below seasonal
level, because of reduced demand from
industrial consumers and exceedingly
mild weather throughout most of the
East
Textile mills held about the same rate
of operations as in recent months. but
business was hard to secure at profitable
prices for textile products Statistics on
cotton consumption appear to indicate
that conditions in the textile industry
are rather better in the Fifth district
than in most other sections of the
country.
Spot Cotton Prices Higher.
Spot cotton prices ruled somewhat
higher from mid-January to mid-Feb-
ruary than in the preceding month.
but we're still far below the price levels
of other recent years. Cotton consump-
ton in the United States in January
was in smaller volume than in jan
uary 1881, although consumption in
the fifth district increased slightly in
the 1882 month.
Tobacco markets paid very low prices
for producers tobacco in January. and
there was practically no market at all
for the lowest grades Tobacco manu-
featuring in both January and in the
year 1881 fell behind January, 1881
and the year 1880, but last year Vir-
ginia paid more taxes on tobacco
products than in 1880, chiefly because
a large cigarette factory in Richmond
was open all of 1881, but was not COM
pleted and opened until well into 1890
NdluaIlOH LOT DuIQlIR per-
mits issued in January in the fifth
district set new low figure for any
month since the war years, when prac-
tically all building was suspended. and
contracts actually awarded for con-
struction work also declined to a new
low level. Retail trade as reflected in
department store sales was poorer in
January than in any month in many
years, partly due to unseasonal weather.
Wholesale trade also fell materially be-
low the level of trade in January, 1881.
Redlscounts for member banks held
by the Federal Reserve Bank of Rich
mond declined by S8,523,000 between
January IS and February Is, both this
year, but on the latter date were s18.-
100000 above rediscounts held on Feb
ruary Is, 1881. The portfolio of open
market paper also declined by $780,
600, but advanced S5,572 900 during the
year On the other hand, the bank
increased its holdings of Government
securities by S5,0oo,o00 between the
middle of January and the middle of
February, but on the latter date held
S3,180,000 less in Government securl-
ties than on February Is last year, the
Richmond bank says.
Pole Reports Fewer Failures.
Controller of the Currency John w.
Pole reports that there has been only
one national bank failure since Feb
ruary II and only "a were reported in
the whole month of February The
bank situation as a whole is considered
the best for many months, the state
ment added.
The controller called attention to the
fact that substantial reductions in
boarding are forming one of the lead
ing factors in the improved conditions.
The controllers statement was flashed
all over the country on the stock
tickers today and was considered Of
unusual Importance.
The Reserve Board places the amount
of boarded money recently put back
into circulation at 100000, 900.
Trading opened on the Washington
Stock Exchange today with four small
lot sales in Washington Railway 6;
Electric preferred, all made at 90, the
same price as the close yesterday. Con-
siderable odd-lot buying in this issue
has been noted in the past few days.
In commenting on the better demand,
brokers call attention to the fact that
the stock has varied hardly more than
10 points since the Wall Street break,
very different record from that of
many stocks on the big exchange
Mergenthaler Linotype was out again
today, three lots again selling at - 2.
ex-dividend. Small-lot trading in this
stock has also been mora active in the
past few sessions
Bonds were neglected in today's trad
ing, $1,000 transfer in Capital Trac-
ton IS completing the business in this
department.
Business Machines Net Up.
International Business Machines Cor
poration, which maintains a plant in
Washington, reports for the year ended
,t1,-