The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-01
TRADE, BANKS
POSITION HELD
BEST IN YEARS
A. B. A. Review Says Affairs
Now Faced on Basis
of Realism.

By Times Special
NEW YORK. Nov. 1.-The mid
autumn banking and business status
in the United States may be consid-
cred the soundeSt it has been for
three years, if for no other reason
than that responsible persons are
facing matters on a basis Of real
ISM" the American Bankers AsSo-
citation publication Banking says in
its current business review.
There is less of a spirit of ex-
Fermentation on the part of the
government and less of a spirit OF
intransigeance on the part of bust
neSc. the review declares.
Both are convinced that an I'M
Outstanding is necessary and are
trying to reach it. The government
has commenced to realize that its
plans for ending unemployment and
the heavy drain upon the treasury
can succeed only if long term cap
ital can be induced to turn 10 the
heavy industries. and has been en-
deavoring to satisfy business inter-
ests that its plans are entirely con-
siten with investment safety.
More Cooperation Apparent
ct must be admitted" the publ
cation continues" that so far busi-
ness has shown a disposition to wait
a little longer before making the
plunge. An increasing spirit of &C
commodation and cooperation is
apparent, however. This is espe-
ciallv true of banking, which is TAX
ing the lead in a general endeavor
to get business and the government
together in satisfactory recovery
program.
probabilities indicate that the adj
ministration will follow as conserva-
tive a policy in monetary matters
as political exigencieS will permit
and, while the price raising policy
announced by the President is IN
the ofing, that policy will not be
pursued further by monetary ma
nipulation.
1T seems probable that the fear
of imitation will be gradually allayed,
but in the meanwhile it is definite
obstacle to recovery financing. The
policv of price raising, whatever the
means adopted for the purpose, also
gives rise to considerable mlsglVlng.
Accepting these fears as real oo-
stacles to recovery there seems 10
be little question that there is more
of a disposition on the part of
finance and industry 10 discount
them and to cooperate as far as
possible with the government. This
certainly is true of banking. The
refunding of Fourth Liberties dur
ing October is counted a substantial
success and this success was largely
due to the disposition of the banks
to aid in the process.
Miscellaneous Loans Rise
THE most notable feature OF the
statements of reporting banks is the
increase in miscellaneous loans or
dinarily going to commerce and in
duStry-notable not only because or
the increase in the profitable plac-
ing of funds, in itself, but in its inn
plicationS as to the general business
situation. The increase in these
loans in the banks as whole COM
menced in the week of July IL, and
between that date and Oct. 10 the
spread was s306 100000, marked by a
steady advance from week to week.
The increase seems to be wide
spread.
Business on the whole has been,
as a banker has expressed it, as
good as good business men expected
Trade has picked up seasonably but
little if any more. There has been
no STUDENT improvement and none is
expected. Little immediate i'm
provement in the construction and
capital goods industries is antici-
pated in the immediate future. Ac-
tivity in industry is largely con-
fined to consumption goods indus
tries Reduced crop movements,
following a reduction in general
freight movements in the summer
letdown, have reduced railway earn
ings, already at a low point, with
the result that demand for better
ments and equipment so badly
needed is still inactive, with drag
ging effect upon the equipment and
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