Evening star., 1934-12-15
BANK OPTIMISTIC
ON 1885 OUTLOOK
National City Points to Huge
U. S. 0utIays and Other
Factors.
BY EDWARD C. STONE.

and the passing of serious uneasineSs
over imitation, are among the chief
factors which make the National City
Bank optimistic on the 1885 outlook.
The outlook for the first quarter of
1895 is now becoming of chief interest
to business men, and some of the fac
tors that will influence the trend are
apparent. That the Treasury disburse-
ments will continue to supply purchaS-
ing power Is reasonably certain, since
the unemployment will call for relief
and the payments to agriculture will
be heavy.
1t is estimated by the A. A. A. that
S283, 100000 of the rental and benefit
payments thus far authorized will re-
main to be diSbursed after January !.
This Is half as great as the total al
ready paid and to be paid during 1884,
and 1t takes no account Of the new
cotton, corn-hog or other 1885 pro-
grams. 1t likewise appears, the bank
forecast adds, that industrial produc-
ton on the whole is we'll adjusted to
situation, as a rule, will not stand in
the way Of improvement, if purchasing
power is maintained.
ments tending to help the economic
system to recover its Self-Supporting
character. which have had hearten-
ing effect. No demonstration is nee
eSsary to show that one of the factors
in the disturbance of the system is
the reluctance of capital to seek in
vestment. which is an element in the
backwardneSs of the capital goods in
dustries, the chief area of unemploy-
ment.
The capital markets have had en-
couragement from the action of the
Treasury in terminating the controls
on purchases of foreign exchange.
This is chiefly significant as an indi-
cation that no further devaluation
of the dollar is at present contem-
plated. The purpose of the controls,
which in practice were chiefly matters
of form, was to prevent a flight of
capital from the country during the
revaluation process.
Also, the new measures designed to
induce flow of capital into the field
of residential construction may prove
important in promoting the revival
of that distressed industry. The
building figures continue extremely
backward. The Importance of build
ing in the economic life of the country
is such that Well-balanced recovery
is hardly to be expected as long as
1t continues depressed.
In the area of price and wage re-
lationships the tendency of the over
head authorities to avoid further dis
turbance of wage scales and hours
nf l1 hNr 70
ductions, seems clearly marked.
Stability in wage rates would be a
gain, and reduction of costs at every
wage level, through the resources of
management, plant improvement and
technical progress, is unceasing in
the business world. Indeed, it is the
source Of all the progress that has
been made, including the gains of
labor.
Finally, the bank comments, it Is
notable that business men in their
calculations for 1885 are giving little
weight to the much discussed posi-
bility Of imitation" using the term
to denote expanding credit and active
ly rising prices.
Keep Hartman Office.
George A. Garrett and Mai. Ferry
K. Heath, Washington partners in the
newly consolidated New York Stock
Exchange firm of Hartman & Keech,
have decided to retain the Hartman
office, now located at 815 Fifteenth
street northwest, and give up the pres
= ent Clark, Childs e. Keech Office in the
Metropolitan Club Building, at Seven
teenth and H streets. The new firm
will concentrate its business in the
Hartman office, beginning January 2,
the resident partners announce, add
ing that the selection was made be-
cause of the larger vault and floor
space facilities.
An automatic teleregister quotation
board, such as is now being used in
the Keech office, will be installed. The
board room will be located in the rear,
while the front part of the Office will
be used for library purposes where
various financial publications will be
available for reference. The same
complete service will be maintained
that has been carried on by the sepa-
rate firms.
Mr.. Garrett has become a member
of the New York Coco Exchange, re-
ports from New York state.
Stability Reserve Acts Name.
After stating that bankers widely
are of the opinion that the Federal
reserve act needs to be changed, to
enable the system to function more
effectively in co-ordinating the Ma
tion's credit and currency, r. s..
Hecht, A. B. A. chief, says:
"It was not the intention to bring
about any form or measure of politi-
cal control over the economic freedom
OF business. 1t was not intended,
either, to facilitate the employment
OF banking credit in stock market or
other form of speculation. 1t was
simply intended as beneficial inf1u-
ence for business stability in the serv-
ice of all the people.
IF the Federal Reserve system has
failed during its 20 years of operation
to attain some of its objectives, or if
in some respects it has appeared to
cause or help things that were not
intended, 1t must be remembered that
during these years the national econo-
my on which it was based has passed
through some of the most rapid and
spectacular evolutionary changes any
nation in the history of the world has
ever experienced.
'The banking act of 1893 has gone
FAR in correcting the indirect use of
the Federal reserves facilities in ex-
panding credit for speculative pur-
poses. 1t has increased its powers to
promote the practice of higher stand
ards of banking among its members.
1t gives more effective powers of CO.
ordination to the Central Board. 1t is
generally agreed that still further
changes must be made to carry into
the form of law evolutionary develop
mentS that have grown out of the Ma
tons experiences of the last decade" /"
Mortgage Firm Votes Dividend.
The Board of Directors of the Real
Estate Mortgage and Guaranty Corp,
at its December meeting, declared a
dividend of per cent on its preferred
stock payable December 81 to stock