Evening star., 1936-07-03
Total -- s3o6,432, ,644.7
Second Call So Far in 1886.

SCNohu YAH SO dt ht lJJps
This was the controllers second call
In 1886. three calls being required
and four usually being issued. Sinul-
taneously, the Federal Reserve Board
today asked for the condition state
mentS of all member banks as of
June go while the Federal Deposit
Insurance Corp. requested all State
non-member insured banks to report
their condition at the close of busi-
ness on Tuesday, June 80.
Today's reports indicate that IS
banks in the Capital had increases III
deposits over the March call totals
while seven had lower figures. All
the individual decreases were COM
paratively small. The gains oy the
other banks we're modest. not quite
enough to bring total deposits in the
city into new high ground.
New York banks have been report
ing considera bly, better earnings in
the past three months and the whole
first half year. Banks here say this
Is also true in Washington.
Business Activity Continues.
Business activity continues to ex-
pand with little regard for the tradi-
tional uncertainties of an election
year. In short, recovery seems to be
assuming more and more the aspects
of its many predecessors which we're
motivated by the restoration of con-
f1dence," declares the American Bank
ers' Association monthly analysis of
business conditions, out today. The
review adds:
Amid the hubbub in Washington,
Cleveland and Philadelphia, business
stuck quietly to its knitting. Several
lines of activity recorded gains that
were contra-seasonal: in others the
diminution that usually signals the
approach of Summer was less than
normal. On the whole it was a sat-
isfactory month; the momentum pre-
viously acquired was sufficient to
overcome any hesitancy which might
otherwise have been manifest.
THE immediate effects of the bonus
payment were less spectacular than
had been anticipated. for in many
communities there was no great rush
to cash the bonds No doubt a lib
eral proportion of the money will find
its way into retail trade before the
Summer Is over.
Demand for goods of the semi
permanent type also has been brisk
and tends to increase. Automobile
production slows up as the trade pre-
pares for the new model season, vet a
5000, ,00o-unit year still seems prob
able.
Fair Crop Returns Seen.
Crop prospects are excellent in
many parts of the country. Drought
has threatened to be a disturbing
factor in the Northwest, but the price
outlook, at his point. seems promis-
ing. There has been enough doubt
about the position of cotton to lift
prices appreciably in response to a
strong demand at home and abroad:
even with a fairly short crop, which
Is unlikely. a fair return is promised
to Southern farmers.
Retail trade generally is 10 to %
per cent above year ago, having
reached the best level since earlv in
the depression. June reports suggest
ed a further increase. This gain. it
appears, represents a rise in the ac-
tual turnover of goods, as there has
been practically no increase in prices
Tor consunptiongoods over a year ago.
How completely the banks have
cleared away the wreckage of boom
and depression years appears graph
ically in the fact that institutions in
the Federal deposit insurance system
had net additions to profits last year
OF s2o7,o0o,o0o as compared with
net loss of s339, 100000 in 1884. How
ever. this result was obtained more by
stopping losses than by increasing
gains and is more an evidence of COM
pleted liquidation than of increased
earning power"