Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-06
BEST GAINS So FAR
SEEN IN SENTIMENT
Review Declares Sounder
Banking Status Also .
Proving Helpful.
BY EDWARD c. STONE.

security and commodity markets has
provided a powerful and pervasive
stimulus to business sentiment and a
better background for renewed bust
ness initiative which organized admin
istration efforts are attempting to
arouse and mobilize, says Business
Week. There is evident q determine
ton on the part Of the administration
to make the most of the measures
which Congress has provided to pro
mote industrial expansion and higher
price levels. improvement in the bank
ing positions is helpful.
Business indicators show increasing
stability and commodity prices en-
couraging strength. Although eVldenceS
of actual expansion of productive ana
trade activity are still slight, scattered
and uncertain, the cessation OF their
relentless recession is reaSsuring.
The problems of putting decisive
stop to the persistent contraction OF
bank credit, of increasing employment
and consumer purchasing power, OF
readjusting debt burdens to lower in
come levels and reducing the cost OF
long-term capital for productive pur-
poses still remain as basic obstacles to
quick and easy recovery, although the
far-reaching relationary forces now a.
work will go far to Offset these diff
cultieS as they become effective, the
review states.
The most important accomplishment
so far has been the rapid dissipation OF
the defeatist state of mind in financial
and industrial circles and renewed
disposition to believe that, after all.
business recovery may be possible and
that everything need not go to the
dogs, even in these dog days, the
magazine concludes.
Tax on Checks Reduces Cleartngs.
Reports on July bank clearings from
all parts of the country indicate that
the 2-cent Government tax OF checks
cut down total clearingS, just as the tax
did in Washington.
1t is believed among local bankers
that bank clearings will not be as accu-
rate a business barometer while the tax
remains in operation as they have been
in the past. So many personal blllS
are now being paid in cash that there
is bound to be q reduction in clear
tngs and July was the first full month
in which the change could be noted.
Some economist has recently discov-
cred that car loadingS are no longer
the accurate gauge to the movement OF
freight that they have been for years.
The reason for this is because so much
freight is now being moved by trucks.
Thus, two old-time business indicators
are being attacked as Of less impor-
lance. Clearings will regain their for
mer value when the. tax expires, and
car loadings will be given more con-
sideration when taxes are placed on
motor trucks which are taking so much
business away from the railroads.
How many fewer checks are being
drawn since the tax went into effect
nobody knows The number in July
would have been lower than year
ago, anyway, because business condi-
lions we're not so good. Furthermore,
July is usually the sloweSt month in the
year from business standpoint. Bank
ers place the reduction in checks off,
hand at perhaps 10 per cent. The saw
ing in bookkeeping expense partly OIL
sets the expense to the banks Of COL
lecting the check tax for the Govern
ment. At the same time there has
been a marked increase in the number
of counter checks issued
Clearings in this city in July totaled
$76,646,111.12, against $85, 449, 660.70 In
June.
Cost Of Living Advances.
Bradstreet'S weekly food index re-
sumed its upward course during the
week ended August 2. rising IL per
cent to STA. This is still, however,
1914 per cent less than a year ago.
During the past week II commodities
advanced, IA declined and Sc remained
unchanged, while in the preceding
week II were higher, Is lower and 81
unchanged The marked rise In several
important commodities; notably butter.
eggs and sheep, was the greatest con-
tributing factor in the rise of the in
dex The majority Of grains decreased
slightly, as did the remainder of the
live stock group, beeves especially reg
dStering a sharp drop.
A number of the metals, such as lead
tin AID zinc were higher, while yellow
pine, Douglas fir and brick, in the
building material group were of.
Railroad Earnings Compared.
Glass l railroads in the Southern dis
trict for the first six months Of 1892
had a net railway operating income of
ST,703 ,759, which was at the annual
rate CT return of DAT per cent on their
property investment. For the same pc
Rod in 1881 their net railway operating
income amounted to $25.497,9 12, which
was at the annual rate of return Of SIS
per cent.
Gross operating revenues of the class
! railroads in the Southern district for
the first six months in 1882 amounted
to Sl99, 458,749, decrease of 294 per
cent under the same period in 1881,
while operating expenses totaled $685.
O29,705, a decrease of 26.5 per cent.
Glass l railroads in the Southern dis
trict for the month of June had an
operating deficit Of 1852 sos, compared
with a net railway operating income of
$3,206,65l in June, 1881.
Lincoln Bank Sees Upturn.
That business is regaining confidence
in itself is the opinion expressed in the
Outline Of Business, issued by the Lin
coin National Bank, the August num-
Der Of which was distributed yester-
day. The publication expresses the
opinion that if confidence continues to
grow and embrace any considerable
portion Of the United States, a real be-
ginning may be made toward working
out Of economic Stagnation.
Citing number of Intangible" fac
tors as encourag ing, the bank publica-
ton predicts that the greatest activity
in history awaits the iron and steel in
duStry and quotes exhaustive figures
from the magazine Steel to back this
opinion.
Heard in Financial District.
Wade H. Cooper, president of the
United States Savings Bank, and the
Commercial National, has returned from
vacation passed in New England.
Robert V. Fleming, president of Riggs
IS passing the week end at his Summer
cottage on the New Jersey coast.
The marriage of Raymond P. Marx
controller Of the Riggs National Bank
TO Miss Gladys T. Loyette, is announced
Charles B. Harding of Charles D
Barney g. Co., has been elected to the
New York Coffee and Sugar Exchange.
HornbloWer & Weeks, a widely known
investment house. is A years old today
having been opened in Boston on Au-
gust 6, 1888.
Building Status Unchanged.
The Federal Reserve Bank of Rich.
rnond states the building tradesner
.1r...... q. 80 =