Evening star., 1936-08-01
BUILDING MOUNTS
NF|FTH DISTRICT
Permits Issued During July
Valued Nearly 80 Per
Cent Above 1885.
BY EDWARD C. STONE.

in leading cities during the month
nearly 80 per cent in estimated valu-
alton above permits in June, 1885,
The report adds that Federal Re-
serve notes in circulation advanced
sharply up to July Is, due to needs
for additional currency in handling
the veterans bonus. Employment
conditions were little changed. In
the middle of July people in nearly
all industries and trades were better
employed" than year ago.
Retail trade was 10 per cent better
than last year, wholesale trade was up
and cotton prices advanced because
of relatively small acreage and the
weather. The reporting member
banks reduced their loans moderately
between June is and July Is, but in
creased their investments in securities
and both their demand and time de-
posits rose.
Discounts at the Richmond bank
declined, as well as industrial advances
for working capital, while the Rich
mond banks holdings of Government
securities rose Sufficiently to bring
about a net increase of per cent
in total earning assets" the review
said.
The fifth district showed decrease
OF 6 per cent in the number OF bank
ruptcies in June this year, compared
with the same month of 1885, and
liabilities were % per cent below
June, 1885, liabilities. Textile mills
continued to operate on full time.
A. B. A. Finds Business Good.
Midsummer business is unques-
tionably good although the present
high level of activity can hardly be
expected to continue until Fall without
a pause, says Banking, published by
the American Bankers Association
It is fairly certain, however, that any
setback will be minor and temporary
the review adds, as the natural forces
of recovery have demonstrated their
strength and they have a momentum
which may reasonably be expected to
carry the country into new high
ground in the coming Fall and
Winter.
The momentary stimulation follow
ing the distribution of bonus funds to
the veterans has practically died
away and is no longer an important
business factor. The inevitable effects
of the drought, in higher prices and
reduced purchasing power, will be
registered eventually, probably in the
late Summer or early Fall. While
serious labor disturbances can prob
ably be postponed, the problem must
certainly be solved eventually. Also,
a certain degree of uncertainty arising
from the national political campaign
is unavoidable, the review says.
The effect of the drought has been
duly considered by the business world.
While it is realized that the loss OF
hundreds of millions of dollars in
crop wealth and land values is a seri-
Gus matter, 1t is significant that in
dustrial and commercial activity in
consumption goods has continued
without a break. This activity, in an
increasing degree, has extended to
the capital goods industries.
It is possible that the farm income
will be as great with short crops as
it might have been with overfiowing
granaries. Higher prices for farm
products, resulting from the disaster,
combined with the aid given the
farmers by the Government, will do
much to offset any loss of income suf-
fered from the effects Of the drought.
The verdict of observers who have
seen the effects of several recent
droughts in the Midwest is that the
devastation this year is not so wide
spread as in 1884. The prospect still
favors a good corn yield and other
crops are expected to make a fair
showing.
Whatever additional income the
fortunate farmers receive as result
of higher prices must be obtained at
the expense of the rest of the country
and the unfortunate farmers. The
higher cost Of food and other necessi-
ties depending upon agriculture re-
duces buying power which might go
toward the purchasing of other COM
modities, the review states.
Wholesale Trade Values Gain.
Value of wholesale trade increased
noticeably in June, 1896, from June,
1885, and collections on accounts re-
ceivable were made at higher rate
over this period, according to reports
of wholesalers in the monthly joint
study of the National Association of
Credit Men and the Bureau of For
eign and Domestic Commerce, De-
partment of Commerce.
Total net sales of 1000 reporting
wholesalers increased about 10 per
cent in June, 1886, from June, 1885.
Without adjustment for seasonal in
fluences, June, 1886, sales registered
an increase Of approximately 2 per
cent from May of this year.
Percentages of collections on ac-
counts receivable submitted by sol
wholesalers were higher in June this
year than in May this year and June
a year ago. In June, 1886, 70 per cent
of accounts receivable were collected,
as compared with 683 per cent for
June year ago and TOT per cent for
May, 1886.
Heard in Financial District.
c. F. Jacobsen, cashier of the Ma
tional Metropolitan Bank, is now at
Atlantic City and will be back at his
desk about the middle of next week.
Donald N. Carpenter, local repre-
sentative of the Aetna Casualty g.
Insurance Co., is at the company's
home office in Hartford, attending a
special five weeks course covering the
latest developments in insurance
methods.
A. S. Goulden & Co. is distributing
the last quarterly report of Massachu-
sets Investment Trust, which shows
substantial business gains during the
last three months. The company re-
Gently increased the quarterly divi-
dend from 10 cents to 81 cents per
share.
Daily average sales in small towns
and rural areas for June showed a
larger increase in the Far West than
In other parts of the country, as COM
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