Evening star., 1933-08-11
OPTIMISM GAINS
ON D. c. OUTLOOK
Improved Sentiment Noticed
as Capital Prepares
to Join Advance.
BY HAROLD B. ROGERS.

Despite some unfavorable trends here
: In Washington business and the still
unsettled state of large group of Gov
ernment personnel, faced with the
threat of further reorganization or in
definite future, the general sentiment
in financial circles here appears to be
that the National Capital is undergoing
change of feeling for the better, with
possibility of pulling into the upgrade
along with the rest of the country.
This city, with its heretofore stable
Government pay roll, was about the
last place in the country to feel the
full effects of the depression. With the
new administration still experimenting
in reorganization of the Government
machinery and Government workers
still on pay cut and in many cases
furloughs. it is no wonder that this city
has Jagged somewhat behind others In
pulling back with the pickup that
many other cities have shown under
the National Recovery Administration.
Declared Hopeful Sign.
Opinion differs among financial lead
ers now as to what the immediate fu-
ture may hold forth, but there is a
definite spirit of optimism beginning to
break through Some still are quite
non-committal. Some see definite signs
that Washington still is dull. Others
see definite signs that things are be-
ginning to improve here. But the sig
niflcant fact now appears to be that
much sentiment is turning to more
hopeful and spirited attitude. This
should augur well for the future.
Increased pay rolls by business houses
flying the blue eagle. of the N. r. A.
have already brought increased buying
power to many homes, with surprising
increases in some instances. This new
buying power in many instances will be
Immediately translated into actual pur-
chases, it is believed. Merchants who
are increasing their own pay rolls are
looking to better and bigger business as
q natural result.
This city did not follow the per
cent upturn in sales shown by depart
ment stores throughout the country in
July over July, 1882. but went into
unfavorable factors. The closed banks,
with their frozen funds, constitute still
a check on recovery here. Reopening
will help.
Additional employment by the Gov
eminent in its recovery program has
taken some slack out of the unem-
ployment, however. Government en-
ployes who are gradually being placed
on a permanent basis can begin to feel
like spending again. Reorganization
went into effect in several parts OF the
Administrations plan yesterday. The
people who thus were placed in new
Jobs of more or less permanence feel
more secure. These are hopeful mol-
cations.
withhold Predictions.
1t is a bit too early for business and
financial leaders here to make definite
predictions about what will happen
after Labor day. They are working,
watching and hoping.
Dog days find business quieter
throughout the country, but still going
strong, in the opinion Of Business Week,
one of the reliable surveyors OF busl-
ness conditions.
Dog days are dull days for business"
SAYS Business Week. but this year Au-
gust brings less laSsitude than usual.
Steel output is leveling off at SIS per
cent of capacity, the highest point IN
more than two years, with slight
slackening in demand just perceptlble
to close observers. Despite labor troubles,
coal production has achieved new
high level Settlement of the Pennsyl-
vania strike is great relief TO worried
industries dependent on coal Tnere
isn't much encouragement in the build
ing figures, which run 80 per cent
ldSb yCdA bAS eAAA' ~ ~>~s
great a disparity as there was IN
earlier months of 1888. and residential
construction actually is little greater
than last years.
preliminary figures for July indicate
an increase OF per cent in department
store sales over July, 1882, and this Is
the first increase since 1880. For tne
first seven months sales have run Is
per cent under last years figures. Re
- l1> q rhaaTf11l
Electric power production is little less
than in preceding weeks, but still far
greater than last years. The same
remark applies to car loadings. Check
payments declined for a week. Busi-
ness failures increased by sngnt
number. Commodity prices showed a
tendency to weaken. All in all. not an
exciting but certainly not dlScourag-
ing week Pretty good for August.
Business Weeks Weekly 1noex Q!
Business Activity showed preliminary
reading of 692 for the week ended
August S. against revised reading OF
69.9 for the previous week and 54.8
year ago."
Common Stake Seen.
Discrimination is used by Standard
Statistics Co. in its survey OF the puSi-
ness outlook.
"Employers, employees and consumers
are all bound together in the operation
of the National Recovery Adm1nistra-
tion's various Codes" says the survey,
"and their success depends assuming
the general theory is workable) on pre-
venting leaks in the form OF mde-
pendent action on the part OF any OF
these groups.
"Summarizing the outlook brought
into view by the preliminary operation
of the codes the following possibilities
may be noted:
'The plan for increasing total wage
payments, and stimulating business
thereby. could hardly succeed when
business was in the declining phase OF
a cycle. 1t is now, however, in an up
ward phase, and probably has sum-
cient power to override the inequalities
and distortions which may be pIoouceo.
Retail sales, which hitherto have
Jagged behind the recovery in other
lines, will almost certainly be stimu-
lated by increased wage payments
Nevertheless, the profits OF merchan-
disers will be restricted in the early
stages by the fact that higher wage
payments are likely to strike them with
special force"
Personal Mention.
Robert v. Fleming, president of Riggs
National Bank. has left for his vacation
at Spring Lake. N. j.
Earle NJ. Amick, assistant vice presi-
dent of Riggs National Bank, has re
turned from a vacation fishing trip in
Virginia.
John NJ -Riordon, executive vice
president of the Bank of Commerce
& Savings, leaves tomorrow for a three
weeks vacation at Oak Bluffs, Mass.
CHASE AFFILIATE ISSUES
CONDITION Statement
Nv the Associated Press
NEW YORK, August 1.-THE state
r,ent of condition of the Chase Cor
---t;., .f61iofo of tho Chase National