Evening star., 1935-03-26
D. c. COLLECTIONS
SHOW SLIGHT LAG
Total Below Nearby Cities.
Sales Gain Over 1884
Far Above Others.
BY EDWARD C. STONE.

OOllcCLlOlle llclu up WCu AL WuoA-
ington department stores during
February, according to information
received from the Federal Reserve
Bank of Richmond this noon. OF the
receivables due at the beginning of
the month 271 per cent were paid
before March L.
WaShin9tonlanS, however, did not
pay their bills quite as rapidly as the
buying public did in some other cities
in this district. In Richmond, collec-
tions were 29.9 per cent of receiv-
ables; in Baltimore, 27.6 per cent;
in a group Of other cities, 2S9 per
cent, while the average for the whole
district stood at 27.8 per cent.
Department store sales in this city
were 1872 per cent better than in
February year ago, compared with
1927 per cent for the fifth district
For the first two months 1885 sales
were 15.9 per cent ahead of last year,
which was well above of the fifth dis
trict average of 9.S per cent.
The Richmond bank reports that
stocks on hand at the end of tcbru
dly AL OUOlCO AL Vic Saplld1 WEIC
81 per cent lower than at the same
time year ago. Compared with
January 81, this year, stocks we're
Ill per cent higher here and 9.8
per cent larger for the 81 department
stores reporting in this trade area.
Stocks were turned .584 times dur
ing February in the local stores,
against a fifth district average of
.528 times.
Western Electric Turns Corner.
For the first time in five years the
business of the Western Electric Co.
in 1884 showed an improvement over
the previous year. Sales for the year
amounted to s91, ,807 900, an increase
of 80 per cent over the sales of S69,-
$1,000 for 1888. Notwithstanding
this increase. the company operated
at less than 20 per cent capacity and
showed loss for the year of s7,751.-
548. which compares with a loss of
S13,772,504 In 1888.
An important result Of the improve
ment in the business during the year
was an increase in the number of
employees from 18,446 at December 81,
1888 to 20,416 at December 81, 1884.
From June, 1888, the month in which
our employment reached its lowest
level, to December, 1884, there has
been an increase of 1888 employees of
whom approximately 95 per cent were
former employees.
The net loss for the year after in
terest charges. s7,751 ,54S, includes
profit of S849.941 from subsidiary and
associated companies. After crediting
profits Of S2,036073 on sales of mar
ketable securities and other surplus
balance in surplus at December 81,
1884 was s12.57e,222, a decrease of
S5.704, 1882 for the year.
Western Electric maintains ware
house in Washington from which it
supplies equipment to the Chesapeake
& Potomac and other Bell telephone
companies in Maryland. Virginia,
West Virginia and other nearby
States.
Economic Crisis Held Ended.
The current number of Sphere
financial magazine, declares that the
national economic crisis is over, that
standards of living are now normal
and that a condition of normalcy
really exists. The magazine says:
THE emergency should be officially
declared ended and condition of
normalcy proclaimed. Then we could
be basing policies on facts instead
Of maintaining this monstrous fiction
that the Treasury must contribute
to the support of from 30 to 40
millions OF people.
What was our gravest problem?
The insolvency of the banks. The
banks are not insolvent now, but are
bursting with excess reserves.
What was our second grave prob
lem? The ruin occasioned by specu-
lation. But there is now Securities
Exchange Commission, with compre-
hensive authority over all exchanges
and over the issue of securities. Unless
the administration of that commits
sion is utterly futile, the public has
adequate protection.
What was our third great prob
lem? Mortgages on farms and homes.
But the Government, through two
great funding corporations, and
through minor agencies, has SUBJ
stantially rescued that position. and
offers the means for any additional
salvage work that may be requisite"
A. B. A. Recommendations Printed.
Printed copies of the recommended
tons of the special committee of the
American Bankers Association on the
proposed banking act of 1885 were re-
ceived here today from headquarters
in New York. This is the report pre-
sented to the House Banking Commit |
tee last week which urged the reduc-
ton of the Federal Reserve Board |
from eight to five members, and sug-
eested ways of making the system as
non-political as possible. The report |
favored title ! as beneficial to the
operation of the Federal Deposit In
surance Corp. but urged more con-
sjderation which would make all nom
member banks join the Federal Re- |
serve System by July l. 1887.
The committee said it should be |
provided in the act that members of |
the Federal Reserve Board, including
the governor, should be removable |
during their term of Office only for |
cause. II new President should ap-
point new reserve governor the re-
tiring governor would be allowed to
remain as member of the board if |
he wished to do so. The committee
also feels that in order to preserve the |
independence of the governors of the
Federal Reserve Banks, the term dur
ing which they may serve, without |
having to be reapproved by the Fed
eral Reserve Board, should be as long
as possible, certainly not less than
three years.
The special A. B. A. committee
favors an open market committee