There has been a slight increase in the availability of mortgage funds in some areas, but not in others. There has been little or no reduction in mortgage rates. Consumer spending has been maintained but it seems to be below retailers' expectations in most areas. There are some exceptions-for example, one major New York City department store reports a steady improvement and tourist expenditures are heavy in the Boston District. The net impression is that in most Districts retail activity is only at a moderate rate.
Agricultural trends suggest the possibility of higher food prices.
The effect of heavy rains and the spread of corn blight point toward a reduction in some crops, which will tend to push up prices. The corn blight has seriously reduced the corn crop in the Kansas City District but apparently has caused only a minor reduction in the crop in the St. Louis District. Nonetheless, the expectation is that the reduced supply of cattle feed will tend to push up meat prices in the future. The Dallas District reports that a survey of thirty-one city and county finance offices indicates a continued increase in local government expenditures and borrowing in the coming year. The financial situation has moved toward greater ease.