Evening star., 1936-01-04
OPTIMISM RULES
FINANCE CIRCLES
Bankers, Brokers, Invest
ment Dealers See Further
Gains Ahead.
BY EDWARD C. STONE.

Street crash OF 1879 WHICH lelI 81
much gloom in its wake. Nearly all
the bankers, brokers and investment
dealers in the city predict better
year than was 1885. even with its
striking improvement. One quickly
discovers a new atmosphere in the
city's financial houses, in marked con-
trast to the situation IL months ago
The fog has lifted.
Such financiers as George w. White.
president of the National Metropolitan
Bank, are much encouraged over the
outlook. Mr.. White believes the busl-
ness improvement which gathered so
much momentum in 1885 will COR
tinue in 1886.
George L. Starkey. president of the
National Bank of Washington, says
that the progress made in 1885 was
on solid foundation. If the barks
can only find new places for the en-
ployment of funds. they will have
fine year Better and better times are
ahead, he believes.
Floyd E. Davis, president of the
Lincoln National. suggests comparing
conditions at the beginning of 1885
with the end of 1895 to show what has
really been accomplished. He expects
the gains made in the past II months
to be extended in 1886. Willing to
bank on it." as the expression goes.
Other Financiers Cheerful.
Corcoran Thorn, president of the
American Security & Trust Co.;
Frank J. Stryker, president of the
Columbia National. and Victor B.
Deyber, president of the Second Ne
say lust what will happen" in 1886,
but they are all cheerful as to the
New Year.
H. Prescott Galley, president of the
National Savings & Trust Co., holds
similar views on the outlook. Francis
G. Addison. jr, head of the Security
Savings & Commercial Bank, expects
the Capital to have good year, re-
gardleSs of conditions elsewhere.
Harry G. Meem, president of the
Washington Loan & Trust Co., de-
clares there is every reason to believe
that the marked improvement in in
dustry and trade during the closing
months of 1885 will be maintained.
Banks are in position to give every
assistance to business, he says.
Lanier P. McLachlen, president Of
the McLachlen Banking Corp, says
there is nothing on the horizon at the
moment to indicate any decrease IN
purchasing power or in confidence IN
this city. The present year should
see further economic progress, he said.
Further Gains Predicted.
Thomas j. Groom, vice president of
the Bank of Commerce g. Savings,
expects some general increase in most
types of business in 1886. Conditions
in the National Capital, at least for
the first six months, should continue
to be good, in his opinion
Frederick P. H. Siddons, secretary
of the American Security g. Trust Co
and last years president of the Dis
trict Bankers Association, comments
that signs of real recovery are not
only just on the horizon but in many
ways have already arrived. Economic
reconstruction days are still here and
it will be some time before normal
times have returned, he asserts.
Ord Preston, president of the Union
Trust Co., is vastly more optimistic
than a year ago. He considers the
1885 upturn in Washington as most
impressive and forecasts a continu-
ance of these better times in 1886,
expecting the various business indices
which made such substantial gains II
1895 to keep on advancing.
A score of other bankers express
similar views All agree there are still
many handicaps and point to Con-
gress, coming Supreme Court rulings
and the uncertainties of a presidential
year as among the factors which cloud
the outlook to a greater or less extent
However, court decisions will end Bit
ter controversies. Business often ad-
vances in campaign years and Con-
gress will keep the election constantly
in mind, the same bankers add
As the A. b. A. Sees New Year.
Banking, the magazine published by
the American Bankers Association, in
the January issue says:
Business leadership is more aggres-
sive and public confidence in business
initiative is undoubtedly returning.
The country is regaining its economic
nerve. The outlook for 1886, there
fore, is good
There are hurdles facing the
country in 1886 more difficult. if any
thing, than those of 1885 The fact
that they are not regarded as insur-
mountable, singly or all together is
a highly encouraging phenomenon
and it remains only for the Govern
ment to cooperate in every way with
business in the national interest"
Pointing to 1886 hurdles, the
magazine mentions Congress, taxes
soldiers bonus, unemployment, ma
tional deficits, credit control, 30-hour
bill, wars in Asia and Africa. Town
send movement, New Deal laws and
other factors which are held as re.
tarding recovery. Then the review
adds:
The preferred view of 1896, how
ever, contains a formidable amount
Of optimism. Following the failure
va tliC SuiiiiiCl olulllP W lcdCl dIlIlCl-
pated depths, there has been a steady
increase in industrial activity during
the Fall and early Winter based upol
actual consumption of goods. Thu;
has meant more spending money fol
industrial workers, while agriculture
income and spending have increased
in even greater proportion.
The combined result has been ar
increase in retail trade over tn:
country as a whole averaging perhap,
20 per cent above that of a year ago
Nationwide bank deposit turnover ha'
been the highest since 1882. Auto
mobile production and sales have beer
the best for the season in the same
period.
"All this activity has been imme.
diately reflected in corresponding
industries, mostly those manufactur'
ing for consumption, but not without
l. l,,-