Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-15
BANKERS REPORT
NATIONAL UPTURN
Gains in Home Building,
Auto Sales and Retail
Trade Are Cited.
BY EDWARD C. STONE.

Bankers in Washington report that
business over the rest of the country
is showing steady and substantial i'm
provement. Any reports to the con-
trary are inaccurate, said bank off,
cial in the financial district today,
basing his statement on reports in
letters from out-of-town banks with
which his institution has dealings
Other fnanciers declared that their
reports from correspondent banks
were equally encouraging. real up
swing being frequently mentioned.
References are made to the better
demand for residences, which in many
cities has caused an advance in rents
and made building more profitable.
Numerous writer's cite the fact that
about SO per cent more automobiles
were manufactured in the first half
of 1885 than in the like period a
year ago, mention gains in power con-
sumption, larger orders for railroad
equipment, advances in retail sales
and very notable increases in check
transactions, which in many instances
have reached new marks for the
present recovery.
Mortgage money for building oper-
atoms is said to be easier to get from
insurance companies, building and
loan associations and other lending
institutions The strength in bonds
and Improvement in stocks are often
mentioned as signs of new invest
ment confidence. Business will ex-
pand and the low money rates con-
tinue during the next six months, ac-
Cording to the best banking opinion
expressed in scores of these letters.
Ayres Considers Stocks Low.
THE present prices of dividend pay
5ng common stocks seem high when
Judged by the standards with which
We were formerly familiar, but they
are in reality relatively low when we
compare them with bond prices" Col
Leonard P. Ayres, economist of the
Cleveland Trust Co, said in his month
ly review today. He added
Business during the first half of
1885 has been closely similar to that
during the first half Of 1884, and on
the whole somewhat better The out
puts of manufacturing and of mining
have been a little larger this year
than they were last year, while in
dustrial employment has averaged for
the six months about per cent
ahead of last year, and pay rolls
nearly 10 per cent.
The value of department store
sales has been slightly more than in
the first half of 1884. but the prices
have been enough higher so that the
volume of goods sold has been some
what lower this year. Steel produc-
ton. and the loadings of freight on
the railroads, and the volume of new
buildings have all been lower than
they were last year.
The most interesting and import
ant Of the problems involved in the
relatively static condition of business
is that of the failure of the combina-
ton of great accumulated shortages
Of goods, and great accumulated sur
pulses of capital to stimulate new
business activity. Idle funds have be-
come SO large that interest rates have
fallen to the lowest levels ever
recorded and corporations are busily
calling their bonds and reissuing them
with lower coupons, but save in rare
instances they are not creating gen.
uinely new issues.
Few existing businesses are falling
but almost no new ones of Importance
are being started. 1t is a strange an
omaly that huge shortages and ac-
Cumulated idle capital are not being
recognized as constituting opportun-
aty."
ID. c. Bankers on Committee.
Herman B. Wells of Indiana, chair
man of the Committee on Standard
1zation of Call Reports, Earnings and
Dividend Reports, which was organ
lied to work with the Federal Insur-
ance Corp. and other Government
agencies. has appointed two Wash
ington bankers to the committee,
which has been made permanent.
The committee now includes George
o. Vass. vice president and cashier of
the Riggs National Bank, who will
represent the American Bankers As
ISOLATION. and Arthur j. Linn, con-
troller of the Hamilton National Bank
who will act for the National ASSocia-
ton of Bank Auditors and Con-
trollerS.
In addition to Chairman Wells,
other members are NJ j. Fox, Jr.,
chief, Division of Research and Sta
tistics, F. D. I. c.; Edward L. Smead,
chief, Division of Bank Operations,
Federal Reserve Board; George c.
Haas, director, Division of Research
and Statistics, Treasury Department,
and Philip R. Clarke, president, City
National Bank & Trust Co., Chicago,
representing the Association of Re-
serve City Bankers.
Uniformity in the reports required
by different Government departments
will be worked out
Heard in Financial District.
The Treasury is offering an addi-
tional amount of $l00,000,000 of 27s
per cent Treasury bonds, 1955-1960,
for sale to the highest bidders. Ten
ders will be received up to Wednesday
noon
Carter b. keene, receiver for the
United States Savings Bank, reports
that $86,90l has been collected during
the last three months and $2,438, 1893
since the bank suspended operations
in March. 1888. The bank already has
paid former depositors IS per cent
and is in position to pay another
Is per cent on approval from the
controller of the currency.
Changes in the dates for it's forty
third annual convention in Cincin-
natl is reported by the United States
Building and Loan League. New dates.
ss given out by I. Friedlsnder, presi-
dent of the league, are November Is,
IA and Is. one week later than those
formerly set.
William S. Quinter, secretary of the
District of Columbia Building g. Loan
League, reports that 632 loans total