Evening star., 1936-12-07
FURTHER UPTURN
IN 1887 FORECAST
Capital Goods Expected to
Show Best Gains, Sur
vey Indicates.
BY EDWARD C. STONE.


nual forecast by United Business
Service released today in the finan-
cial district. The summary, which
includes the opinions of many differ
ent economic authorities, says
Capital goods-This division of in
dustry will Sic, sile greatest per-
centage improvement next year. Re-
Mobilization of railroads and utii-
ties, together with sizable increase
In building, will materialize.
Retail trade-The dollar volume Of
goods sold at retail will probably be
per cent to 10 per cent larger than
in 1886, owing to higher farm and
urban purchasing power. Retail prices
are expected to advance next year.
Agriculture-Large crops are ex-
pected in 1887. Benefit payments are
likely to continue, although the total
will be less than in 1896. Farm in
come will probably be about per
cent over this year, despite price de-
clines.
Industrial employment-Total fac
tory employment will be higher next
year, largely because of the gains
which will take place in the heavy
industries. Strikes will be more nu-
merous in 1887, despite further wage
increases. There will be real scar
city of skilled workers in some lines.
Foreign trade-The total volume of
United States foreign trade in 1887
will probably be larger than in 1886,
despite the chaotic conditions in Eu-
rope and Asia. Reciprocal trade pacts
will aid commerce.
Misunderstanding in 1887 will
probably average Is per cent to 20
per cent higher than in 1886, with
the largest gains occurring in the
capital goods industries. First half
profits should make exceptionally
favorable comparisons with CORE
spending periods year earlier.
Bond market-A relatively stable
level of Government and high-grade
corporate bond prices is expected
through most of 1887. The year prob
ably will mark the end of the long
upward cycle of bond prices, and
there is possibility Of moderate
downturn toward the close. Second
grade bonds should continue to ad-
vance.
Stock market-The coming year
should witness a further advance in
stock prices. Following a period of
downward readjustment early in 1887,
the main upward trend should be
resumed Heavy industry issues are
expected to record the largest per-
centage gains.
Bankers Laud I. B. A. Farley.
Washington investment bankers re-
turned today from the twenty-fifth
annual convention of the Investment
Bankers Association at Augusta, Ca
enthusiastic over the forum and all
other discussions. The convention
drew 1,100 members, the largest at
tendance since 1929 and probably the
largest on record.
Among the members from here
were Kenneth S. Wales, William w.
Mackall, Y. E. Booker, George NJ
Ferris James P. Nolan and James H.
Lemon. Mr. Booker is a member of
the Board of Governors. At the clos
ing business session Edward B. Hall
of Chicago was elected president for
the coming year.
Chairman James M. Lands of the
Securities Exchange Commission made
one of the most talked of addresses.
He was most frank in telling the in
Vestment dealers that unless they were
extremely careful in protecting the
investing public, further control meas
ures would sooner or later be adopted
k>,, %111 0f
j. D. Ross of the same commission
proved intensely interesting at the
forum on public utilities.
Lionel D. Edie, consulting economist,
placed full responsibility for the cur
rent ease of money rates at the door,
step of official Washington. What
ever the mandate of 100000 votes
may mean to different people," he
said. sit would be stretching things a
long way to make it mean a mandate
to keep money rates at levels as ex-
tremely, as abnormally and as danger
ously low as those now prevailing"
Franklin to Pay Out S25O,00O.
Payment of the S25O,00O dividend
to $1,000 depositors in the former
Franklin National Bank will start to-
morrow morning in the Departmental
Bank Building, 1925 Pennsylvania ave-
nue. northwest Samuel NJ Thrift,
executive secretary of the trustees,
moved into the payment quarters to-
day. The dividend brings disburse-
ments up to 82l2 per cent of the
funds due depositors
yryin ho II
ing of the Safe Deposit Section of the
District Bankers Association and the
Maryland State Safe Deposit Associa-
ton at Hotel Longfellow, Baltimore,
tomorrow evening. About 20 delegates
from Washington will attend, includ-
ing Chairman John F. Hillyard, Vice
Chairman Mrs. Helen r. Sharpe and
Richard E. Harris, general chairman
OF the 1887 Convention Committee.
The guest speaker will be F. T. Coke
Of Philadelphia, president of the
National Safe Deposit Council.
A final liquidating dividend of
S124.61 is being paid to the holders
Of the first mortgage per cent bonds
Of Washington. Baltimore & Annapo-
lis Electric Railroad Co. The property
has been in receivership since 1881
and in 1885 the track was torn up
and sold for scrap. A previous pay
ment Of $51 was made under a court
order of July, 1888.
With commercial loans on the in
crease and bank deposits at new all
time peake, Victor B. Deyber, chair
man Of the board of the Second Ma
tional Bank, sees no reason why the
present recovery should not go for
ward for long time, at least well
into 1887. He is decidedly optimistic.
Bank Stock at New 1886 Top.
Five shares of Washington Loan g.
Trust Co. stock sold on the Wash
ington Stock Exchange today at $50,
Q new high mark for 1886. Mergen-
thaler Linotype came out at IS, Real
Estate Mortgage g. Guaranty pre-
ferred brought 6H.