Pine Bluff daily graphic., 1916-11-02
BUSINESS BEST IN YEARS, SAYS
 RESERVE BANK
Reports Show Conditions in This Federal Reserve Dis
 trict Never Better.

d1t1on. Crops spotted, but prices cas- fly offsetting effects of bad spots" |" This quotation, from an answer to one of the letters of inquiry in regard to business conditions sent out by the Federal Reserve bank of St. Louis, summarizes the reports receiv- ed from practically all lines of indus try, says the monthly report on con- ditions in federal reserve district No. 8 issued today by Wm. McC. Martin. chairman of the federal reserve board and federal reserve agent. The re- port continues:
 Dry goods, groceries, boots and shoes, hardware, and jewelry, all re- port that their business is extremely brisk and that, at present, there is no indication of a let-up. Prices have advanced and are high, but have not yet reached point where purchasers hesitate to buy what they desire. This applies to luxuries as well as to necessities.
 "The only industries in this district which do not seem to be at high tide aer those connected with building. These report a good businecss, but they have enjoyed better.
 Most of the other industries re- port that they are enjoying a good business, if not better, than they have for number of years. Ship ments show a big increase over the same periods in 1913, 1914 and 1915, and collections were never better.
 "One of our wholesalers, who does 8 very large business turnout this 1>,,ci nonIi- ton in the territory is we'll above nor mal. People are employed, factories are busy, and merchants are doing the largest business they were ever doing. We can sec no change in con- ditions for some time to come.'
 From Memphis comes tn" report Business in our line seems to be estab- fishing a new record for volume in nearly all of our trade territory. Sales are far above normal, with every in- dication of the demand for mefchan- disc continuing for the balance of the year. On account of the high price of our money crop, cotton the az ricultural population is seemingly in very prosperous and satisfactory condition
 . Arkansas Enjoys Great Prosperity.
 "A wholesaler in Arkansas writes: Business is good-best for number of years.' Another says: Business A third reports that crops are short, but business is good
 Kentucky reports that Business in general is much better. The to bacco crop is very encouraging.'
 '.From Missouri and from Illinois come reports that business is gooo.
 From statements made by those who live in the cotton growing portions of this district, it seems that the cot ton crop in district No. 8 is in some what better shape than it is in other districts. A gentleman from Arkan- sas reports that, in his judgment, the crop in that state will turn out bet ter than the general reports indicate.
 "Wheat, corn, oats and hay, ill all of the states in this district. are be- low the ten-year average, but the to- bacco crop in both Kentucky and Tennessee is fully ten points above the ten-year average.
 "Last year, the paper rediscounted by member banks with the Federal Reserve bank of St. Louis, reached it's largest amount, held at any one time, on November 16. On that day, this bank held 8 total of rediscounted paper amounting to $1,SS2,492.77. On October goth of this year, this bank held total of paper rediscounted for member banks amounting to $2,3Sl.- SS3.5S, showing an increase over our largest amount heretofore of S499.- 390.76, and we have most probably not yet reached our highest point this wear, of redisceunted paper held on any one day. As this paper Is all commercial paper. based on business activity, it is some indication of con- ditions, and should become an actual index of conditions when members banks do the greater part of their borrowing thru the Federal Reserve bank. However, a part of the above increase is doubtless due to the fact that more member banks have learn ed how to use their Federal Reserve bank and have found it easy, prompt satisfactory and pleasant to deal with.
 CleariHgS Show Increase.
 "The clearings' turnout the district show substantial increase. For the week ending October 7th. the figures are as follows: Memphis. 99.6 per cent; Little Rock, 94.7 per cent St. Louis, All per cent; Evansville, 27.2 per cent, and Louisville, 17.1 per cent.
 "The check clearing and collection system in this district continues to work satisfactorily. For the third month that this bank has been work ing under the new plan. from Sep tember 16 to October 15, inclusive, we handled total of 220.36S items. amounting to $141,942.921.23. This shows an increase over the previous period of 1S.GSS items, but decrease of $29,SS7 ,664S3 in the total amount of them. The number of items handled during this period by mem Der banks direct to other federal re- serve banks for our account, not actu- ally hnadled by us, amounted to 2o7,- 355 times. totaling $43,2SS,o70.S4. This means that thru the mstrumentaiity of the clearing system. there has been handled thru this bank, direct and indirect. a total of 427.71S items. amounting to $1s5, ,226,4s1.57, during the third month this bank has operat- ed under the new clearing system. The total number of banks in this ,s mar. neo1MhorS