Evening star., 1937-03-02
HEAVY DEMAND
FOR GOODS CITED
Business Optimism Persists
Despite Obstacles, Says
A. B. A. Magazine.
BY EDWARD c. STONE.

BY EDWARD C. STONE.
Continued demand for goods Of all
kinds explains current business op-
timism persisting in the face OF de-
velopments which normally would be
viewed with misgiving, Banking. OIL
cial organ of the American Bankers
Association, said today in its monthly
review. When all reports of indus
trial activity and retail volume month
by month tell the same story for
period of a year and a half or more,
the review adds, it would require
real shock to disturb the hopes OF
the average business man.
Ordinary caution suggests the prob
ability of reaction by Summer, espe-
cially in consumption goods, but 1t
must be admitted that there are no
surface indications of anything OF
the sort at this time, and the pace
set In the heavy goods category seems
likely to go on for some time to
come.
It is significant, the summary fur
ther asserts, that the chief efforts of
the financial authorities at Wash
ington are directed toward anticlpat-
ing and preventing an unhealthy ex-
pansion of speculative activity, and
in these general objectives the Gov
ernment seems to have the approval
of the business community. 1t should
be emphasized, however, that even If
the credit managing authorities take
all action within their power to con-
troll speculation and prevent the mis-
use of credit, their efforts will be only
partly effective as long as the deficit
creating expenditures of the Govern
nent continue. These expenditures
pour buying power into depositors'
accounts as well as into the banks
Of the country.
Building Up 100 Per Cent.
The output of steel at Pittsburgh
reached SO per cent of capacity the
middle Of last month. approximately
equal to the highest point attained
in 1929. Building contracts in the
first month of the year showed an
increase of about 20 per cent over
last December and 100 per cent over
the same month year ago. The
steel companies alone anticipate an
outlay this year of s290000,000, COM
pared with $2l6,0O0,0O0 last year.
Farmer income continues to rise,
with likelihood that the current years
Income will be much above that of
last year. Continued industrial and
commercial activity, the review con-
cludes, give considerable promise that
the marked increase in loans of
miscellaneous character which was
registered during most of last year
will be more than equalled the cur
rent year, particularly in strictly COM
mercial lines.
Bank Call Due This Month.
This month of March usually sees
call for the condition of all Washington
banks and all national banks in the
United States issued by the controller
of the currency This call ordinarily
comes during the early part of the
month.
A survey of the banking district to-
day indicated that the banking institu-
tions in the Capital will report about
the same aggregate deposits as were
returned on the last call, dated De-
cember 3l,, 1885, At that time the
banks reported the largest total de-
posits on record.
It was stated today that bank vaults
are still bulging with money. There
have been no marked changes in total
deposits here since the December re-
port. If the call comes early in the
month, deposits as whole will prob
ably show slight gain. If it comes
later in the month, deposits may be
Of a bit. Government pay days on
the 1st and 18th of each month usually
boost deposits to higher figure than
they are around the end of the month
Title 1 Loans in Demand.
Washington banks report a substan-
tial pickup in the demand for loans
under Title of the Federal housing
act Money obtained on these loans is
used for building alterations and re-
pairs. Bankers believe the improved
demand for such loans assures lively
Spring season in the building repair
industry. For several years the banks
have pushed this class of loans and in
that way have played vital part help
Ing business recovery.
A large number of powerful stimu-
dating influences are at work at pres
ent which are likely to bring about a
more than seasonal expansion of in
dustrial activity during March, says
the service in its current report. 1t
points out that since the beginning
OF the year the trend of general busi-
ness has been moderately downward,
even though a number of lines, par
ticularly steel, textiles and machinery,
have continued very active during this
period.
McNinch Sees New Utility Era.
Management of the public utility
industry faces new era and new
problems, and it. remains to be seen
whether this management will be
equal to the test, Frank r. McNinch,
chairman of the Federal Power Com
mission, said in an address before
class Of DR.. c. o. Ruggles, profess
sor of public utility management, at
Harvard University.
Vigorous Federal regulation, a mill
tant demand in many regions for
municipal ownership, the definitely
established policy of the National Gov
ernment to utilize the Nations natural
resources of water power in the pub
lie interest, Mr.. McNinch said, are
only some of the major problems now
facing the management of private in
dustry.
Heard in Financial District.
Banks in this city increased their
reserves at the Federal Reserve Bank
of Richmond yesterday, as required by
the recent ruling by the Federal Re-
serve System. Putting up the extra
reserves caused not ripple among the
banks anywhere in the country.
Early arrivals in the brokerage Of
fices today saw United States Steel
common make another new high mari,