Evening Star Newspaper, July 7, 1923, Page 19

FINANCIAL. MTRB_HANIS AWA" {Fall in Foreign Exchanges Big Factor in Financial World . 6OODS DEMANDS Business Men Sure Trade Will Pick Up in Fall—0il Storage Big Problem. By J. C. ROYLE. Special Dispatch to The Star. NEW YORK, July A waiting game. That is what producers, manu- facturers, distributors and merchants in a score of different lines are play- ing today. They are perfectly content 0 wait for the cat to jump, confident in the belief that conditions that make for prosperity and increased business have not changed and that the pres- ent seasonal slackening will be suc- ceeded by an increased volume of bus- Iness before the season is over. As a consequence. the question of Storage is uppermost in lh\:(r minds. Storage space and facilities” are at a Premium. and the financing of storing Products for better prices or more ad- vantageous periods is involving mil- Hons of dollars. Despite the seaso 1 slowing down, few husinessmen view it as anything but tempe ry. One reason for this attitude is that many of the condi- tions which preceded the collapse of 1920 are absent. Transportation is functioning smoothly, cars are in sup- Ply, and there is no pyr: ing of or- ders which remains to be toppled over. Merchants and manufacturers are buying from hand to mouth, and the credit situation is eas: The re- aetion in commodity prices, therefore, 18 not regarded with great concern. 0il Storage ellities. The question of storage is perhaps most pressing in the oil industry. Re- ductions this week in the prices of crude in certain fields have given jample warning that continued pro- duction and marketing carries danger of further price drops with it. The peak of the California produc- tion isx expected to come early in September. This will be met by 39,- 000.000-harrel ge Ceé NOW near- ing completion. Every big oil company in that state is increasing tankage facilities as fast as the supply of materials and labor will \permit. When the storage projects, how in process of construction, are completed space for more than 1,000,000 barrels Will be available. The problem is even more pressing In the mid-continent field where pur- chases have been restricted but pro- duction has not.s Steel companies the country over are rushing deliveries on plates for tankage. Basic Commodities Being Held. Both cotton_and wool growers are reparing to hold their products for Righer prices. In the west, the wool men are steadfastly refusing to sell more wool at present levels and hav- #ng disposed of a part of their clips at good prices are storing the re- mainder or shipping it to eastern markets on consignment where it is being stored. Although some cancellations have been received for woolen goods since commodity prices turned downward, these have been far from heavy and with most Interests in the trade pre- diteing higher prices at the opening - 9f the lightweight goods season which take place next week, buyers of goods are holding off and so are manufacturers. Cotton Growers to Hold Crop. While the cotton situation is not bright, neither producers nor dealers -are depressed by the decline in the market for the raw staple. Planters are better fortified than ever this year to market their crops advan- tageously and there will be very little “distress selling.” Loans to growers are small, co-operative marketing Agencies have adequate plans to finance producers and warehouse fa- cilities are being enlarged. Southern growers are fully convinced that the yield and carry over will not supply demand and a holding can: rly in the season would sur- Telegraphic reports to the automo- bile manufacturers show that sales i country districts are picking up fast where crop prospects are Im- proving. One leading company sold more cars this week in a certain prairie district than during any week gince March. There are an increasing «number of signs that the effect tock market xlump have passed | the automobile ' industr So confident are som fall will buy 50 far as is concerned ing that every a Ing cars is bei antage of. made mis- boldness in takes th housands fail pushing forward, ush lack of coura REPORT OF THS CONDITION 07 the ANACOSTIA BANK, AN ACOSTIA i | s of stor- | | palgn Sterling Expected to Recover Soon—Ruhr Causing Much Worry—No Trade Boom I in Sight—=Too Many New Securities. BY STUART P, WEST, Bpecial Dispatch to The Star. W YORK, July 7.—The one de- velopment of consequence ~bearing upon the financial situation this past week has been the continued fall in the foreign exchanges. The declines in sterling, it is well understood, has not been due to political causes. It has been the result of the transfer of funds from London to other markets —move especially to New York— where more remunerative terms have been offered. To stop this esodus the Bank of England has raised its dis- count, forcing up rates in the open market, and thus making It no longer attractive for Americans to borrow. The expectation is that offerings of sterling drafis to cover remittances of borrowed money will now cease, and that sterling rates will recover. New low records, in some cases for behe year, in others for ail time, have been made in continental currencles, however. Here the explanation | mainly political. It is a further ad- mission of what has been felt in in- | ternational banking circles all along, | that the French experiment in the Ruhr was a mistake. It is also an ex- pression of uneasiness as to what will lhBDpEII if the allles part company and proceed to their own separate solutions of German reparations and | the interwoven problems of the war debts, French-Englixh Situation Precarious, If Great Britain were to withdraw her offer to France of partial remis- sion of the war obligations in return for reduction of French claims upon Germany, and were to insist upon the whole debt being refunded and in- terest payments begun, it would bring French financial affaits to a crists. Already the situation ix sufficiently | precarious French collections of German coal amount to little beside what the! French budget pretends to count upon. The deficit In consequence is much larger than the actual figures make It out to be. France is doing all it can to avoid | the disastrous expedient of inflating the paper money to meet this de- ficiency. It is attempting to bridge the gap by constant additions to the huge volume of internal loans. What | would happen in such a state of things if Great Britain started to enforce its war claims, is not hard to imagine. It would mean a further violent fall in the value of the franc and_quite likely would lead up to a confession on France's part of In- ability to meet its foreign debts. | Wall Street Unduly Alarmed. At a time of unsettlement such as the New York stock market has been | passing through every possibility of | trouble is canvassed, as being a fac- tor in the downward movement. In- creasing attentlon has accordingly been paid to the latest happenings abroad. The disagrecment between Great Britain and France is admit-| tedly serfous from the point of view of the French financial position and also from the point of view of Eu- rope's economic rehabilitation. But it is difficult to see the ground for the apprehension, which some people in Wall street profess, of Eng- | land and France carrying their dis- pute to the breaking stage. If there Was any great amount of alarm on this score, it would have shown in one quarter more than anywhere else—the quarter most sensitive to war scares—that is, the wheat mar- ket and here during the past week there has not been the slightest rip- | ple of excitement. No Trade Boom in Sight. The perplexities of the European situation have no doubt been an %t fluence in the markets here. but comparatively minor one. The ex- planation for the prolonged and severe {decline on the stock exchange. which { was at length checked toward the j close of the last week, must be look- ed for in conditions at home. Un-| | doubtedly Wall street and aiso the | { business community outside were too | { optimistic in their calculations four | months ago. There is not going to be the trade boom and the price in- | { flation that were so freely talked of lat that time. { To the extent that the downward ! movement in the stock market rep- | resented a revision of these ideas, it | | was altogether logical. But, of | | course, the decline went far bevond | the limits of a reaction after an over-enthusiastic speculative cam- a Observers whose experience ers Money to Loan red by first deed of trust on real estate. Prevalling interest and commt don. Joseph 1" Weller o Wik rom i Secu | bills of e or drafts . ared { rament “'mm’ IR1.0M 19 1, snno! .00 28 ate banks | 819 80 o ¢ NG b Temn | 180218 | Tota! 1.0m1 w2 11 l WILITIES A in 3000000 | 30,000 00 o'l wer v o d for special roner (O " 2000 00 51 Individual deposits subject to heck ) £ deponit oo “hare 280.152.20 e hec Cortificates loss than Ademand deposite (ath. " han| doneaite) \toma 35 0 and w3 Other time e Total of time a1 and 84 City ot Washington, AR e ETALER, rashier® of the | hank, do swear that the atement i true (o the best of my hetlet CHAS. V. M. Cashier. ’ me this ot Tote riet of Columbiy ol tin fon the last twenty-five years find this one of the most difficult situations to analyze. It seems clear that -the Wall strect decline has had some effect upon outside business, that it has made businessmen restrict their buying to immedlate requirement, and that there Is more of a slowdown in forward trade than can be accounted for on the ground of the summer season. Still the “bear” propaganda has not succeeded in scaring merchants and manufacturers Into cancelling orders or holding up specifications. So long as this has not happened there is good reason to hope that the cou: try will not have taken' the Wall street upheaval too seriously and have regarded it as portending un- favorable developments in the busi- ness world. In all probability, trade reports for another month or two will not fur- nish material for enthusiasm. They will most Iikely tell of their falling off in orders, of their concessions here and -there In prices and some curtailment in the gencral volume of production. But the essential thing is that there has been no overstock- ing of goods and that. as it draws | near autumn, there will have to be a revival of buying to replenish in- ventories. This buying will not as- sume the eagerness that it did early in the year. but it should reach pro- | portions sufficient to bring about a satisfactory degree of activity. Too Many Securities Issued. Overissue of new securities has been one contributing factor in the decline and home political uncertain- ties have been another. Banking | syndicates have ignored’ the ‘signs | at the investment appetite was satiated. They poured out a total of wore than $324,000,000 new cor- poration bonds and stocks in June, which was $75.000.000 more than was offered to the public in May. For the | first six months the total was nearly | $2,100,000,000, against §1,’ 000,000 | during the same period in 1922, when | available Investment capital was | ! much more abundant Presidential Campalgn Factor. Secondly, investors large and small, | have been reluctant to increase their | holdings with a presid, cam- | paign coming on. during which there will be all manner of agitation against railroads and other corpor ations. Tt is not casily conceivabl that this agitation will accomplish | anything in the end. where the su- preme court stands to assure a_square deal for property interests. Still all the preliminary fuss and all the stir over radical candidates for the presi- ! dency are things which it s un pleasant to ®o through. To induce owners of money to buy more stoc under these circumstances. it h been necessary for the market to offer more than the usual attractions | in the way of interest vield. It is, this account apparently that the investment buying forces have so slow to assemble (Copyright, BUSINESS AT GLANCE. SHREVEPORT, La. July i adopting eleven standard fertilizers! and discarding seventy-five now In| general use, experts of the state agri- | cultural colleges of Texas, Arkansas, | Loufsiana and Oklahoma and repre- | sentatives of fertilizer companies have taken steps to simplify the prob- lem of crop fertilization. ALABAMA CITY. Ala., July *Thnl Dwight Manufacturing Company's cotton mili haa closed doswn 300 Tooms | because the cloth thev produced is not in demand. The company care to accumulate it in warehouses. MEMPHIS, Tenn.. July 7.—Blds on | the new reinforced concrete buflding for the Memphis Cotton Exchange are to be opened at once and work on the | eleven-story structure, to cost about | $750,000. will be started as soon as | the contract exchange will floor. PAWTUCKET. R Blackstone Valley G and EI tric Company, a subsidiary of the Stone & Webster Co.. has started additions to the company's large plants along | the water front here. In the nex yvear and a half approximately $2,500,000 will bé spent on new bufld- | ings and additions in the city, Cen- | tral Falls and Woonsocket i st ‘Ten thousand flowering plants and | ferns of various kinds are used every year for the decoration of the publie | rooms on ome of the big transatlantic tie_liners. 19231 does not | can oceupy be. awarded. The the entire first . July T.—The American Telephone & Telegraph Co. 135th Dividend lars and twenty-five cents per share will be pald on Monday, July 16, 18 M. B RSMITH, s REPORT OF THE CONDITION WASHINGTON MECHANICS’ SAV- INGS BANK At Washington, in the District of Columbia, at the close of business June 30, 1923. RESOURCES. 3. aLoans and _dis- counts, ineluding rediscounts, ceptances of other banks, and for- elgn bills of ex- change or drafts, sold with indorse ment of this bank (except thomse shown in b and ©) ... otal loans .. $385,810.92 - 3111 104,696.42 ete. . Banking house, ' $24,200. aiture and fxtures. $3:800. Cash in vaul amount due from pational banks . 9438219 bankers and trust companies in the United States (other than included in item 10).. . Checks on other banks in the same eity or town as report- 27.000.69 TIABILITIE . Capital stock paid in Surplus fund .. Undivided profits . Amount due to nati Certified checks out Total of i 23 . 4 0 Demand’ deposits (other than bank _depoxttx). (Deposits payable within 30 davs): Individual deposits subject to ok e Dividends unpaid Total of demand deposits (of er than bank deposits) ite and 29) ... deposits 30 days, or subject dayx or more notice) postal wavings: c ates of depoxit le” after o 30 and (other . Other time depositx Total of time depos 31 and 33 ...... .87 than ' those named bank. solemnly swear that the t I8 true to the bext of my knowledge F. P. WILLIAMS, Treasurer. HUBERT N. ROB Notary Public Correct —Attest RA GOULD. tom 330 to $300 on D. C. real estate, houschold _goods o chatteis. pe cent interest. No brokerage charged. 'Come in and let s explain our wethod of i1 Toan 'Commercial & Fluance Corporation Room 211, 921 13ih St. X.W. System Copyrighted & Pateat Peading. o] Money to Loan ANY AMOUNT Reasonable Charges on Trade Acceptances, Warehouse Receipts, Manufacturers’ Accounts, Short-Term First and Second Mortgages or Approved Collateral. American Finance Corporation Commercial National Bl’lk Bidg. EQUITABLE Co-Operative Building Association Organ: zed 1879 434 YEAR COMPLETED ...84,750,762 mz0r381 Cultivate the Habit of Saving If vou would save with the results. join the Equitable and sysiematically. Subscription for ihe 85th Issue of Stock Being Recelved Shares, $2.50 Per Moath EQUITABLE BUILDING 915 F St. NW. JOHN JOY EDSON, Presidest FRANK P, REESIDE, Secy. beat save Don’t Leave Them A box in cur s at Ilome afe deposit vault is the logical place for vour valuables while you're away this summer. Boxes at low vearly rentals at our Main Office, Central and Northeast Branches. We lssue Truveler's Checks and Letters of Credit 3 % o savines AMERIC ST OM P 15th and Penna. Ave. SECIURI Ly Capital and Surplus, $5,400,000.00 Central: Northeast : Southwest : Northwest : BRANCHES: 8th and H Streets 436 7th Street S. W. 7th and Mass. Ave. N.W, N.E. 1140 15th Sireet N.W, : | 28.000.00 [ Thomas J. Fisher & Company, Inc, 20.955.04 | At Washington,” in the District of Columbia, at the close of business on Established 1509 MONEY TO LOAN In Large or Small Amounts 6% or 637 Before placing or renewing your First or ;econd Trusts, consult WELCH (Harry 8.) Loan Specialist 15th and N. Y. Avenue Main 4346-4347 Quick Replies, Reasonable Charges First Mortgage Loans Lowest Rates of Interest and Commission. Prompt Action All bearing 7% _interest and run for 3 years. In denomina- tions of $250 and up. Chas. D. Sager 924 14th St. N.W. Loan Department 738 15th Street REPORT OF CONDITION Of the COLUMBIA NATIONAL BANK 1. & Loans and discounts, including rediscounts, ac ceptances of other banks, and foreign bills of exchange or drafts sold with indorsement of this bank (except those shown in b and c)...$: Total loans A Overdrafts, unsecured, $9,163 U. 8. government secutities owned a Deposited to secure circulation (U. value) .. - o b All other United States government (including premiums, if any). S. bonds, par securit Potal e . Other bonds, stocks, securities, etc. ... o . Banking house, $73.336; furniture and fixtures, $12, . Lawful reserve with federal reserve bank . Cash in vault and amount due from national : . Amount due from state banks, bankers and trust companies in the United States (other than included in items, 8 and 10) Exchanges for clearing house ..... . Checks on other banks In the same cit bank (other than it 2 Total of items b Miscellaneous 1,121.61 139,626.53 11,8958 41 000 00 | ,000.00 . Capital stock paid in . Surplus fund . Undivided profits e 2 a Reserved for interest and taxe crued Syt 110,119 51 Circulating notes outstanding 243,295.00 | Amount due to national banks . Amount due to state hanks, the TUnited States und cluded in item 22) 24. Certified chec! 25. Cashier's check tstanding . Total of items 22, 23, 24 and 26............... $345.133.67 Demaund deposits (other than bank deposits) subject to re- serve (deposits payable within 30 days) Individual deposits subject to check ........ 3 . Certificates of deposit due in less than thirty days (other than for money borrowed) . Dividends unpaid e Total of demand deposits (other than bank de- DOsits) subject to reserve, items and 30 $1.894.1 Time deposits subject to reserve (payable after 30 da subject to 30 days' or more uotice. and postal saving Certificates of deposit (other than for money borrowed) Other time deposits ......... . Postal savings deposits S 4 Total of time deposits subject to reserve, items 34 and 3 5 able (including all obligations borrowed other than rediscounts) Total He : . .$3.696.819.67 | of Washington. District of Columbia, ss FRANK J. STRYKER, cashier of the above-named bank. do solemnly ewear that the above statement Is true to the best of my knowledge and belief FRANK J. STRYKER. Cashier. Subscribed and sworn to before me this 5th day of July, 1933, (Seal.) HERBERT A. POOLE. Notary Publi Correct—Attest JOHN JOY L WHITI¥ ALBERT F. FOX, NJAMIN WG JAM JOH JOH A. ME H. MILL} N. SWARTZELL, Directors MONEY TO LOAN ON FIRST MORTGAGES AT CURRENT RATES OF INTEREST Bl . g & G GILT-EDGE SECURITIES 7%, First Mortgage Notes Secured on Improved D. C. Real Estate Aéprais:d by Experts of 35 Years’ Experience Without a Loss Offered in Denominations of $250 and Up A Good Investment. WILL PURCHASE First and Second Trust Notes Warehouse Receipts and Make Construction Loans National Mortgage & Investment Corporation 811 Vermont Avenue N.W. FIRST MORTGAGES —are predicated on earth itself »* * * they are instru- ments of construction and progress, offering steady, good profits for your money * * * particularly in the Nation's Century Without a Loss Capital. B. F. SAUL CO. Main 2100 1412 Eye-St. N.W. MONEY TO LOAN ON DISTRICT OF COLUMBIA AND CHEVY CHASE, MD., RESIDENCES 5%29% Interest H. L. RUST COMPANY 912 15TH STREET N.W. MAIN 6888 LOAN CORRESPONDENT FOR THE PRUDENTIAL INSURANCE COMPANY OF AMERICA | | HARRIMAN & COMPANY | Members New York Stock Exchange ‘ 111 Broadway, New York WASHINGTON OFFICE COLORADO BUILDING Telephone, Main 1603 G. B. CHIPMAN, Resident Partner Save and Invest The purchasers of our First Trust Real Estate Notes lock them in a safe deposit vault and forget them Nothing to watch; nothing to worry about; no fluctuation of valuc. SAFE INVESTMENTS WITH A WIDE MARGIN OF SECURITY Paying 6 and 615, (PAYABLE SEMI-ANNUALLY) Shannon & Luchs First Trust Notes Built on a Straight Line of Return Not a Fluctuating Vale Sold in Denominations of $100, $300, $1,000 FULL INFORMATION SHANNON - & LUCHS Since 1906 MORTGAGE DEPARTMENT 713 14th Street N.IV. Vacation Plans 'HIS is the season of vacation plan- ning. Everybody does it. A great many men and women, however, find it impracticable to carry out the fond hopes of the summer time because financial con- siderations bar the way. This Company has devised a plan to enable you to accumulate small savings in the form of our First Mortgage Notes on improved Washington real estate. Even if your savings do not exceed $5 or $10 per month, it is possible for you to invest them in our First Mortgage Notes. As your savings accumulate, the inter- est return will provide the funds for your deferred travel plan. Ask for our Booklet, “SYSTEM SAV- ING.” Swartzell, Rheem &’ Hensey Co. 727 15th Street Northwest ‘Washington, D. C. 54 Years Without Loss to an Investor Net to 1/2% You On 7% FIRST MORTGAGES E mortgage is less than 509% of the ready market ul-vo.lqfln M'mdm have never sustained a loss on either principal or interest. Take advantage of the present rate of interest and invest your funds now. Write or call our Loan Dcpartment and let us arrange for you to personally inspect the property. Denominations $100, $250, $500 and $1,000 WILLIAM S. PHILLIPS First Morgage Investments 15th and K Sts. NW, Main .