Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-04
|CRED|T BANK L0ANS||
MAKE 1892 RECORD
Farm Loan Boards Report
Shows $28,844,289 Gain
Over Previous Year.
BY EDWARD C. STONE.

hung 70 Tie feOeral farm Loan
Boards annual report to Congress, the
~ Federal intermediate Credit Bank
loans to, and discounts for, financing
institutions during 1892 amounted to
$l5l,577,6 5l, representing the largest
volume Of credit extended to financing
institutions in any year since the banks
were organized, and exceeding by $28,-
S44, 289 the total in 1881. The advances
made during the year brought the total
OF loans to, and discounts for, financing
institutions from date of organization to
the close OF 1882 to $819,096,l69 The
amount OF such credit outstanding on
December 81, 1882. was $82,517.754, as
compared to $74,613,187 at the close Of
the previous year
During the year the intermediate
Credit Banks discounted paper for, or
made loans to, approximately 430
financing institutions. OF these. So
agricultural credit corporations, % live
stock loan companies and IA CONNER
clal banks had not previously estab-
ilshed loan and discount relations with
these banks. This brought the total
number Of institutions served by the
banks from date of organization to De-
cember 81. 1882, to LOGS.
During 1892 these banks extended
credit to cooperative marketing asSo-
Citations in the aggregate amount Of
$89 ia. as compared with Sl45, 260.-
1886 In 1881. The amount of outstand-
ing loans to cooperative marketing as
soclatlons on December 81 was $685.
615.
The reduction in volume Of credit to
cooperative marketing associations in
1882 Is accounted for largely by the pay
ment In full Of loans made by the banks
to the Grain Sterilization Corporation
on the security Of wheat. and to the
American Cotton Cooperative Associa-
ton on the security of cotton. The
Cotton Sterilization Corporation greatly
reduced its borrowings from the credit
banks during the year and paid the
remaining balance in January, 1888.
Constructive Policies Seen.
Local bankers are commenting IA
vorably on an article by Mark Sullivan
in the latest issue of the American
Bankers Association Journal. which
states that all the more dependable
evidences indicate that the policies and
practices OF the incoming administra
ton will be conservative and sound.
The writer quotes leading business men
and economists as holding this view.
Avoidance of currency imitation IS as
sured. Mr.. Sullivan asserts, adding that
ON this point there cannot b. the
faintest doubt" The writer continued:
The Democratic platform declared
for sound currency at all hazards. This
not only reflected the mind Of Mr..
Roosevelt at the time it was written
but has been repeatedly and unquali-
tiedly Endorsed by him. The new Presi-
DIR inn lNtS -
unmlStakable words adherence to pres
ervation Of sound currency These pub
lie declarations have been repeated by
him IN many private conversations dur
ing fecent weeks.
This means that Mr.. Roosevelt as
President will veto any currency in
f1ation bill that comes before him. More
than that, 1t means no currency intia-
ton measure will come up to him. His
position as party leader with a large
majority in both Houses. the wish of
the party to achieve solidarity and make
the new administration successful. the
control by the President over his party
through patronage. all insure that the
party in Congress will press no legisla-
ton known To be disapproved by Mr.
Roosevelt
The Bankers Journal article dis
cusses other financial matters facing
the new administration and takes the
same highly optimistic view. Many
local bankers have expressed much the
same opinions. privately. on the out
lock. To them one of the most impor-
tant factors is that the period between
election and Inauguration has now been
passed SO that definite policies can be
announced. telling business just what
it may be expected.
National Outlook Called Brighter.
After calling attention to the unfa-
vorable factors In the business picture
the Weekly Review of Henry Clews g.
Co turns to the bright spots, and has
this to say:
The substantial increases in car
loadlngS from week to week, however.
indicate that the Nation is gradually
getting back On its feet. Loaded cars
now being hauled are about 60 per
cent OF the 10-year normal average, and
the inspiring part Of it is that the
freight movement is largely in the mis-
cellaneouS class, which is evidence of
renewed buying movement in wearing
apparel and in household furnishings
generally. 1t is known that railway ex-
ecutiveS are looking to the future with
greater complacency, feeling that the
worst phase of the situation has been
passed. With operating ratios SO ma
terially reduced, a 20 per cent increase
In freight movement would place the
roads Of the country in a position not
only to earn interest charges, but in
quite few cases to resume dividend
payments.
Another indication of business ex-
pansion is the large volume of electric
energy, which is almost equal to the
output of 1882 at this time. Still an
other bright spot-if it can be called
such-iS the cotton consumption for
last month, which was 10 per cent
greater than that in 1882 To be sure
these are only straws, but pointing In