Evening star., 1937-05-01

Ing Federal EN- .'e"'Ah'e'
deavors to head off any conditions
that suggest boom"
Uncertainty growing out of con-
nicting policies in business and gov
ernment should be noted a. chief
among the unfavorable influences of
the moment. For many months every
effort has been directed toward build
ing up the volume of business, in
creasing productive activity and
strengthening commodity prices. Now,
with prices approaching the sought
for-level and industrial output near
Ing the point called normal some
steps are being taken to remind busi-
ness that boons are not desirable,
while other factors work in the
opposite direction.
In the case Of bank credit the
conflict of action or policy is notable
Before the recently ordered increase
in reserve requirements had become
fully effective, the Reserve System was
called upon to put more money into
the banks by the purchase of Govern
ment securities in open market opera
tions. Prices of certain commodities
actually we're getting out of reason
able relationship with others and no
doubt word or two of caution was
needed. Excess reserves, as every
body knows, were far too high and
reduction was necessary to fore
stall possible misuse OF funds in
speculation.
Bond Situation Studied.
How far the reserve will have to
go in upholding the market is prob
lematical. The buying will be suffi-
GENTLY substantial to carry out the
reserve policy of "exerting its in
huence toward orderly conditions in
the money market and facilitating
"the orderly adjustment of member
banks to the increased reserve re-
quirements," the A. B. A. review says
Until these current uncertainties
as to bond prices, money rates and
fiscal policies are cleared up, bank
management difficulties are likely to
be numerous. The open market
policy of the Reserve Board will doubt
less result in substantial increase
In the amount Of excess reserves on
hand after May l, the latest esti-
mate being around S7Oo,OOO,OoO in
stead of the s5o0,ooo,OO0 originally
anticipated. At all events the excess
will be sufficient to maintain easy
money conditions Indefinitely.
Otherwise the outlook for better
banking conditions may be described
as favorable. Demands for credit for
business are improving and other"
loans in reporting member banks are
steadily increasing. Bank deposits
will doubtless take another squirt as
the Government renews its borrow
Ing.
Building Contracts Mount.
Building contracts continue at a
level running about 25 per cent above
the same period last year. Private
construction has more than doubled
and In recent weeks as been running
more than twice public construction.
The textile industries continue ope-
rating at their maximum. The con-
sumption Of cotton in American mills
in March was the highest on record
with no lessening of volume antici-
pated. Rayon mills are running at
capacity and are expanding their
production equipment as rapidly as
possible
Retail buying has been somewhat
spotty as result of labor unrest, un-
favorable weather and a reaction from
an early Spring holiday season, but
the volume continues we'll above that
of the corresponding period of last
year even though the latter included
the pre-Easter season, the survey con-
cludes.
Clendaniel Quits Insurance.
F. George Clendaniel, president Of
the District of Columbia Life Under
writers Association two years ago, and
for the past seven years a representa-
tive Of the Northwestern Mutual Life
Insurance Co., has been elected vice
president of Stones Mercantile
Agency, Inc, William R. Stone an
nounces. He will devote his entire
time to financial and credit report
ing in conjunction with rea estate
title work, assuming his duties today.
Mr.. Clendaniel is now serving on
several Washington Board of Trade
committees and is much interested in
civic development. He was connected
with the mencantile agency several
years ago. The agency, established
in 1890, is said to be one of the oldest
1ocal-scope credit exchanges in the
United States. Headquarters at 14l9
H street were recently expanded, go
telephones now being used for out
side conversations at the same time.
William R. Stone, president, is also
treasurer; Gordon H. Fletcher, vice
president and general manager, and
M. 1nez Stone, secretary.
Institute Program Ready.
The American Institute of Bank
Ing, section of the American Bankers
Association, will hold its convention
June 7 to II at st. Paul. Depart
mental conference leaders for this
meeting have just been announced.
They are: Audits and accounting, E.
G. Armstrong, comptroller of the
Commerce Trust Co., Kansas City,
Mo-; bank management, Raymond C.
Gee. vice president of the Fort Worth
National Bank, Fort Worth, Tex;
bank operations, Daniel F. O'Meara,
assistant vice president of the Public
National Bank g. Trust Co., New
York; business development and ad-
vertising. Robert j. liant, vice presi-
dent Of the Central National Bank Of
Cleveland: credits, E. L. Blaine, jr.,
vice president Of the Peoples Bank &
Trust Co., Seattle; investments and
Investment banking, William A. Ten
Flick, jr., assistant cashier of the
Chase National Bank; savings bank
Ing, Noble R. Jones, savings executive
cf the First National Bank of St.
louis; trust business, Louis S. Head
Ny vice president of the First Trust