Evening star., 1934-02-17

WIFI a TeluII 1NsFB IN y
of confidence, the
wheels have be- Francis M Law
gun to go round
and a great many we'll managed busi-
neSses may look for a profit during
the calendar year with fair assurance,
at least, he declared.
Mr.. Law remarked that we may
reasonably expect that the Erecent
action of the Government in stabiliz-
ing the dollar will have a marked
tendency to encourage industrial and
other business commitments.
THE very satisfactory condition of
banks is due in large part to the pro-
gram of the r. F. c., under which
thousands of banks have strengthened
their capital position by the sale of
preferred stock or capital notes The
return of confidence has been aided
by the advent of the Federal Deposit
Insurance Corporation and the pro-
lection afforded thereby to 81 per cent
of the customers of the Nations
banks"
Much has been said about the loos-
ing of credit by banks, commented
Mr.. Law. During the acute period
of the depression banks for the most
part have not been lending normally,
nor should they be blamed. With
public confidence shattered the banker
was properly concerned in hQuidity,
having in mind his primary obligation
to pay of deposits.
The situation has improved to the
point where super -hquidity no longer
seems necessary. Conditions have
materially changed. Banks will de-
sire, for every reason, to return to
more normal lending policy.
81 confidently expect to see loan
figures rise" the A. B. A. chief said in
conclusion.
Susquehanna Power Used Here.
From the Washington Railway &
Electric Co.'S annual report are taken
the following notes
"The new 100000 volt transmission
line from Ellicott City, Nd, to the
new Takoma Park Substation bringing
hydro-electric power from the Susque-
hanna River into Washington, was
completed in March, 1888. The new
steam electric generating plant at
Buzzard Point, with an initial unit of
$4,000 kilowatt capacity, was put into
operation in December, 1888 With
the installation of this new unit and
the retirement from the Benning
Plant of three units having total
capacity of $4,000 kilowatts, the in
stalled capacity in the two generating
plants is increased to 100000 kilo-
watts.
Employees of the Potomac Electric
Power Co. and other subsidiaries as of
the close of 1888 numbered 1904, an
increase of 248 over those employed
at the end of 1882. The total pay
roll for 1888 was s2941,475, an in
crease of S256,481. These increases
resulted in part from conformance
with the temporary code Of the cleo
trio light and power industry under
the terms Of the national industrial
recovery act, most of the underlying
requirements of which were previously
in effect as established policies.
Upon the discontinuance of trans
portation operations by washington
Railway g. Electric Co. on December
1, 1888, it became necessary for the
Washington Railway Relief Associa-
ton. a voluntary organization, COM
posed of employees of the system and
operated solely by them. to dissolve.
Those members engaged in the trans
portation business joined similar
organization known as Capital Tran
sit Employees Relief Association, and
all other members joined a new aSso-
Employees Relief Association"
Why Bankers Are Cheerful.
Moody's Investors Service has made
q classification of the distribution OF
the proposed disbursements in the
current fiscal year, showing that
S1,S83 ,O00, 900, of which $500 100000
has already been paid, will go to
farmers in loans and benefit pay
ments: $1,229,000,000 for building;
81, ,2O5 100000 in direct relief, includ-
ing the c. w. A. and conservation
work, and S457,OO0,000 to mortgage
institutions and home owners. AS
these sums reach consumers, and are
spent in trade, they start flow OF
buying power around the circle:
Likewise, the Government funds used
to free closed bank deposits and TO
add to the banking capital represent
large present ana future additions to
purchasing power.
The above facts present one OF the
main reasons why bankers have been
so much more hopeful since the be-
ginning of 1894. With so much money
being distributed, financiers say:
Economic conditions are bound to
be better. They could not be other
wise'
Upon recommendation Of the Fed
eral Reserve Board, Senator Fletcher
has introduced an amendment to the
Federal Reserve act providing for the
extension for one year from March 3,
1884, of the authority in the Glass act
under which direct obligations Of the
United States may be used as col
lateral security for Federal Reserve
notes.
Under the Fletcher proposal the act
could be extended for such additional
time, not exceeding two years, as the
President may prescribe.
1.-THE authority to use the direct
obligations OF the United States as
collateral for Federal Reserve notes
has been of material assistance to the
Federal Reserve banks in their efforts
to facilitate business recovery" Gov.
Black wrote.
The committee and Congress have
about two weeks to prevent the ex-
piration of this authority. The meas
ure is expected to be given prompt
attention.
Broker Firm Restores Pay.
John D. Mothershed, manager Of
the Washington office of Fenner q
Beane, New York Stock Exchange
firm located in the Southern Build
ing, announced today that the COM
pany has restored the IS per cent
pay cut. Notice of this restoration
was received by all the branch offices.
The pay of all employees Of the firm
was lowered Is per cent last Sep
tember. The restoration takes effect