Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-03
PROSPERITY SIGNS
IN CAPITAL GROW
" SIGNS TRANSACTIONS ON THE NEW YORK STOCK EXCHANGE
Insurance, Retail Sales and
CIearings Still Climb With
U. S. Pay Roll.
BY H. B. ROGERS.

continue to pile up. They encouras
observers who are watching closer
the signs of the times in the Nationa
Capital.
Following recent indications o
Washington'S improved position re-
garding life insurance sales, retail
sales and bank clearings as compared
with other sections Of the country
the official figures of the Civil Service
Commission now show the Govern
fnent pay roll here is about $l09,5OO,
900 each month.
All of these factors contribute sub
stantially to a genuine showing OF i'm
provement here in the District, &C
cording to bankers and others whit
are closely watching the trend O.
business.
AS indicated in this column from
time to time with exact figures re-
Gently, this city stands in a prominent
place in regards to life insurance
retail sales and bank clearings. AS
a matter Of fact. the showing OF july
in bank clearings, which placed 1t IL
the lead of every month so far this
year. in its comparison with the SINH
lar month of 1894, has caused much
favorable comment in financial circles
$500 Added to Rolls.
The Civil Service Commission re-
ports a gain of $500 here within the
90 months of the Democratic admin
stration, bringing the total Govern
ment personnel in the National Capt.
tai to 3,453 With this number OF
persons on Uncle Sans regular pay
roll here, getting paid, some in checks
and an increasing number In cash ln
the sum of more than S50,0000oC
every two weeks, the effects are bound
10 be felt in business here in the
Capital. Expanding Government is
taking over a constantly increasing
number of old buildings, despite occu-
pancy of new Federal structures.
Building operations, constituting
one of Washington's major industries
next to the Government itself, are
on the steep upgrade. There was
more construction during the first
seven months of this year than dur
ing the entire year 1884, and more
than twice as much during this year
so far, than during the first seven
months of 1884. Loans from the Fed
eral Housing Administration here have
served greatly TO stimulate construc-
ton. June reports on utilities here
show increased use of their products,
although in some cases the net earn
ings we're off.
Washington bankers are watching
closely developments on Capitol Hill
in regard 70 the bank bill Although
they all have profound convictions
in regard TO the matter, they are re-
manning discreetly silent, for publ
cation. Many privately expressed
opinions on the matter, however, are
highly explicit.
Tiny Coins Opposed.
More outspoken are the bankers here
IN regard to the Treasury's proposal to
mint half-cent and mill coins, a move
which received a temporary setback
when the House Coinage Committee
tabled the Treasury bill for small
coins. Chairman Somers has indicated
the committee would be willing tc
hear further from the Treasury, but
that the measure as drawn gave the
department too much leeway, and
went too far"
Bankers and business leaders here
still object to the proposed tiny coins
If put into trade, they point out, they
will revolutionize the whole work oil
handling accounts, and force the junk.
ing of millions of dollars worth Of
cash registers, adding machines, book.
keeping machines and other devices
to take care of the split cent.
Even representatives of those store'
which specialize most in odd penn!
sales, and "one cent sales" and WHIT
might be expected to seize on the op
portunity of a lone milf sale, ar,
still unalterably opposed to the tin!
coins. 1t would cause endless con
fusion and trouble, they declare, il
addition to the great expense in
polved in revolutionizing the bushes
Of handling coins and accounts. Squar,
coins would be uncomfortable to han
die. some say, and would cause undu,
wear and tear on clothes, pocketbook
and coin containers.
4 Interest Cuts Watched.
Washington bankers are watching
the reduction in interest rates effec
tive in New York State October ]
when, under regulations of the Ney
York State Banking Board, the maxi
mum annual interest rate to be pal,
depositors by banks, trust companie
and private bankers will be per cent
This rate is also applicable to tn
dividend rate to be paid by saving
banks, subject to exceptions that ma
be authorized in proper cases.
In fixing this rate, which is re
duction from the previous maximum
rate of 2l2 per cent, the board de
clared, according to the Bankers
Magazine, that after consideration o
the various factors involved. partic
ularly of current earnings on bank in
vestments, the reduction was in tn
interest of sound banking. Since ma
tional banks are prohibited from pay
ing rate above that prescribed 70
State institutions, this regulation wi
also apply to deposits in national in
stitutions located in the State of Me-
York.
Regarded as Inevitable.
! There are various factors" tn
Bankers Magazine says, which hav
made the adoption of this regulatio
inevitable. Cali loan rates are dow
to a nominal figure; the return o
Government securities, especially thos
of short term, are little better, an
even the State and municipal securi
ties in which the banks may inves
are being marketed at a very To-
rate. The plethora of funds in tn
banks, and the limited demand for &C
ceptable loans, are additional factor
in the situation. Indeed, it is dificu
to see how the banks can afford to pa
any interest at all on time deposit
interest on demand deposits havin
been previously abolished for bank
that are members Of the Federal Re