San Francisco mentions a shortage of office space. Demand for capital equipment remains strong overall, but some weak spots are appearing. Boston, New York, and St. Louis report some manufacturers scaling back expansion plans. Among the capital goods sectors that remain strong are commercial aircraft, railroad equipment, electronic controls, machine tools, and energy-conserving items. Demand for most types of credit remains strong.
Terms are stiff, but good risks are readily accommodated.
Usury ceilings which had limited activity in Texas and Louisiana are being liberalized. Several districts comment on the lack of deposit growth. Farm income prospects are favorable with high prices and excellent yields indicated for wheat, corn, and soybeans. Facilities to move and store grain are fully utilized. Minneapolis fears that a strike at the port of Duluth will cause loss of one-third of the area's wheat crop.