Evening star., 1936-03-02
BANKERS PREDICT
CONTINUED GAINS
Organ of A. B. A. Reports
Real Business Rise on
-
All Fronts.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
STEADY progress. extending for the
first time along the entire business
front, is in prospect in the next few
months" Banking declares today. in
the most optimistic analysis of cur
rent business conditions that the
American Bankers Association has
put out in many months. practically
all lines of commerce and industry"
the forecast says, "are making their
plans in expectation that the current
advance will continue.
mot since recovery became an ac-
cepted fact has the forward movement
spread so completely into all parts of
the country and into all branches of
business. including the laggard capital
goods sector.
THE pessimists, with an amazingly
strong set of arguments on their side,
have been routed for the present.
Rise Less Spectacular.
''There are several considerations
with respect to the present phase of
industrial revival that merit special
attention One is the transition that
has taken place from a somewhat i'm
patient anticipation of business profits
reflected in the stock market to the
less spectacular but fundamental pur-
chasing of goods and expansion of
plants.
Moreover. any progress back to
normal conditions in the heavy goods
industries brings the recovery picture
SvNt@ Lo1n
covery thus far has been largely in
consumers goods Much of this has
been the result of artificial stimuli,
chiefly Government spending. and
there has been some well-founded
skepticism as to whether the improve
ment was either fundamental or per-
manent
IAN impelling reason for the in
creased activity in capital goods has
been the huge backlog of demand re-
sulting from years of obsolescence, the
need for replacements and the neces-
sity for adopting new and improved
equipment in order to lower manu-
featuring costs.
Huge Backlog Seen.
"The imperative need of capital
goods is such as to overcome whatever
qualms the average business man may
feel about Government policies, Gov
ernment financies, prospective high
taxes and other causes of uncertainty
1t is this great unsatisfied demand
which is chiefly responsible for the
improved outlook in those lines of
industrial activity upon which ulti-
mate business recovery and the elm
ination of unemployment depend.
Improvement in the industrial out
look is being financed very largely by
cash rather than by borrowing. Bank
loans for industrial purposes show little
rise, new corporate public issues con-
tinue in small volume, and in every
other way industry shows a dispo-
sition to rely upon its own resources.
All this is in the face of lowering rates
OF interest and heavy pressure of un-
used bank and other investment funds
seeking employment and of rising
prices Of both stocks and bonds"
Retail Trade Much Better.
Details from the Commerce Depart
inent's weekly report on business con-
ditions in this Federal Reserve dis
trict show that retail trade responded
literally to higher temperatures and
on the whole last week was sharply
better than the previous week.
In Baltimore, favorable weather
created the best selling period of the
season with inventories at low ebb.
Washington department store sales
were 1862 per cent higher than 1885
week, Notwithstanding a half holi-
day during the week. Bank clearings
were ST. per cent lower than last week,
but gained 378 per cent over last year.
For the week ended February %
bank clearings in Baltimore were 173
over the corresponding week year
ago and bank debts 228 per cent
above the same period last year.
Norfolk reported that the Norfolk &
Western is to spend S5,000,000 for roll
ing stock and Improvements, about
S3,000000 to be used in Roanoke. The
automobile assembling plant at Nor
folk is now running at full capacity,
employing 1900 men assembling 300
cars daily.
In Charleston, S. c., wholesale
groceries sales were 10 per cent better
than in the same week in 1885 and
bank clearings were 8 per cent ahead
of a year ago. The gunboat Charles
ton, costing s4,000,000, launched few
days ago, was the largest and most
expensive vessel ever constructed in
South Carolina. The Charleston re-
port adds that highway construction
is now getting under way for Spring
and Summer
Graham Back From Florida.
Edwin c. Graham, president of the
Hamilton National Bank, has returned
to his desk after passing much of the
Winter season in Florida. He reports
remarkable tourist season all over
the South, which. in his opinion, re-
fleets steady business advancement
over much of the rest of the country.
MIR. Graham was in Florida early in
the season, came North for the annual
meeting of his bank and then re-
turned to the land of sunshine, reach
ing home last Friday.
The dates for the 1885 annual con-
vention of the American Bankers
Association in San Francisco have
been announced as September 81 to "a
inclusive. The st. Regis Hotel has
been selected as convection headquar-
ters, F. N. Shepherd announces.
The market value of 100 representa-
tive common stocks has increased al
most 70 per cent in II months of mar
ket advance, according to the monthly
compilation of Frazier Jelke & Co.
On February 20, these stocks were ap-
praised at $20,6O8, $4,000, compared
with $11 SAT ,030, 900 on March 81, 1885,
rise of $8.961 100000. During this
period the utilities, mines, motors,
steels and building shares have more
than doubled in value.
In February the market appraisal
of the 100 stocks increased 1895, ,797,-
600. or 1.8 per cent; nine of the 13
sub-groups advancing. The largest
;,, 2f ;,, H.