Evening star., 1934-08-01
MORE BORROWING
EXPECTED IN FALL
Industrial and Commercial
Loans Believed Headed
for Revival.
ny EDWARD C. STONE.


This "a IN spite Of rather spoity
present business situation.
The continued increase IN deposits,
while not 20 great a. In the earlier
months Of the year. has brought the
cheap money and sasy credit situation
20 O climax. In which banks are show
ing increasing restleESness and dissat-
isfaction over lack Of substantial
earnings
Their holdings OF Government Sc
curities continue 70 increase with COM
paratiyeiy little net change IN ether
investments Under the circumstances
the all absorbing question Is q possible
increase In loans. especially customers
loans, and on the whole the prospect
I'm this line seems 70 have improved
slightly. Prlma facie there has been
little change In the situation.
These and other views showing a
more cheerful trend are included in
the American Bankers Associations
August review OF banking and business
conditions. The review adds:
viEor in New Transactions.
"There has been continued liquida-
tion of old loans. some OF them pre-
viougly considered more or less doubt
ful, and a steady relending OF funds
10 the same OF other borrowers. The
character OF the new loans is un-
usually high and there Is yigor and
snap about the new transactions which
have been lacking In the past three
years or more st. Louis and Dallas
report definite increase In the use Of
bank credit,
Banks In nearly all the Federal
Reserve districts. but especially In the
Boston, Philadelphia. Cleveland, st.
Louis, Atlanta and Minneapolis dis
tricts, report continued inquiry for
loans from industrial concerns with
tentative arrangen,~flts for borrow
inRs In the early Autumn.
THE indications are that this ten
tatiye situation win continue for an
other month or more. Reorganization
and reaiignment In the N. r. A. and
A, A. A. are clearing up the indus
trial and agricultural situation con-
giderably, and industrial and com
mercial borrowers seem to be little
more certain OF their position.
'Uncertainty as to the outlook for
crops in the drought-stricken Central
West and Southwest, labor strife and
other uncertain factors In the situa-
ton are restraining influences.
ALSO, while most industrialists and
merchants seem to anticipate definite
business revival In the Autumn. they
do not propose to go ahead with new
undertakings until the expected busi-
ness revival approaches realization.
Liquidation OF customers loans in
individual banks has been accom-
panied by liquidation of bank bor-
rowings from the reserve banks, the
r. r. G. and other institutions. Mem
ber bank borrowings from the reserve
have fallen to purely nominal pro-
portions.
Banks, in short, are alive with
money. The situation has been great
iy accentuated by the policy of the
Federal Treasury in using the gold in
its general fund for the payment OF
current Government expenses by de-
posting gold certificates in the Re-
serve banks and drawing against
them" the review concludes.
Insurance Profits Climb.
Showing profit of 24.3 per cent, or
S430,8l6, the Keystone Automobile
Club Casualty Co. stands second in
underwriting profit for 1888 m a list
of 100 leading casualty companies
compiled by The Spectator, national
insurance journal. Fifty-six of the
companies listed failed to make any
underwriting profit last year.
efvRer 4lzA cfrr x1F fT,k,
analysis, Lewis w. Strahley, general
manager of the company, said that
underwriting profit is the barometer
by which a company's success can be
measured, and we are proud of the
record achieved In the face Of adverse
conditions"
Mr. Strahley says that in the period
covered by the report of The Spectator
the companys surplus was increased
by 1921 ,293, which has been set up as
an additional protection for policy
holders The contingent fund has been
increased by $l24, ,422
Total assets of the combined insur-
ance facilities of the club are S3 ,0o4,-
i7S8.o7.
Bankers Home From Vacations.
c. H. Pope, vice president and
treasurer of the Munsey Trust Co,
has returned to his desk from
months vacation. He passed much OF
the time at Goshen. N. Y. the town
which is famous for the Grand Circuit
races. which are held there every Fall
Frederick P. H. SiddonS, secretary
Of the American Security & Trust Co,
and also this years president of the
District Bankers Association, was also
back at the bank today after passing
his vacation at resort on the Maine
coast
Karl w. Corhy, partner in w. B.
Eibbs g. Co. and second vice president
Of the District Bankers Association.
is spending his vacation in Maine.
Another official in the Bankers ASso-
citation, Charles H. Doing, a vice presi-
dent of the Washington Loan & Trust
Co., also is enjoying vacation.
The Wall Street Journal today pre-
diets drastic revision of the trade
practice sections of the bankers code
whereby the n. r. A. would withdraw
from further attempts to force estab-
1ishment of a system of service charges
on checking accounts. The section
would be changed to permit banks to
arrange their own service charges in
stead Of making them through clearing
houses and N. r. A. action Such a
change would have little to do with
Washington banks. The banks here
have been working inharmony through
the Clearing House Association to de-
velop uniform service charge system
fair TO both the customers and the
banking institutions.
ID. c. Market More Lively.
Washington Gas SIS, 1858, led more
active trading on the Washington
Stock Exchange today. -Four 81 900
sales were recorded at 99Ss Wash
ington Railway & Electric As sold al
9Tl2 and 1000 Potomac Power 6S
came out at ITO. Gas SIS, 1860, moved
at 1892.
Capital Traction stock moved at
2lls, of "a Potomac Electric 6 per
rent Nrpfarrn1 commanded iF2S