Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1916-06-15
RESERVE BANK GIVES
review OF BUSINESS
Reports a Condition of Activ-
ity With Money In
Excess.

The federal reserve bank Of Chicago
gives the following report of business
in this district:
General business in this district is in
a condition of activity with the supply
of money still in excess of require
ments. A better demand for funds is
developing in some of the ountry com-
munities, and this is shown by the re-
quest for accommodations from some
Of the smaller banks upon their reserve
city correspondents, but the larger
Chicago banks are finding it necessary
to purchase commercial paper at low
rates in order to derive some income
from their heavy deposit accounts.
There is a possible danger from the
by the smaller concerns and now being
marketed by the commercial paper
brokers. When a larger number OF
names, including the more substantial
houses, is offered, the banks will ma
turally discriminate, particularly if
wei! employed by their customers,
which may cause inconvenience to the
small concerns which are without es-
tablished banking lines to take up
their floating supply of paper.
Bond houses claim that while there
Is q large supply of money awaiting
investment, sales have fallen off and
- " SiS am
interest as a month ago. New issues
OF bonds and notes appear to meet with
good favor but the demand for NUM-
cipal bonds has slackened and prices
are a little below the high point.
Business in general is progressing
satisfactorily. There, however, nave
been some labor disturbances which
have interfered with building opera
tons in some sections, and have caused
a number of the larger manufacturing
establishments to grant increased wag-
es. Up to date the results have not
been serious but a continuation will
result IN such increase in the cost Of
production that retail prices will of ne
cess1ty be increased, and there is the
possibility of decreased sales, partic-
ularly in foreign competitive markets.
One of our friends advises us that fac
tories manufacturing principally for
South American trade are experiencing
a decrease in orders owing to the eX-
cessive ocean freight rates. One thing
to be taken into consideration with re-
gard to the volume Of business is the
present value of merchandise, which in
many cases is considerably above the
quotations of a year ago.
Weather conditions AVE delayed
work from two to three weeks n the
decreased acreage of winter wheat
seems to be fully confirmed by the re-
ports at hand. The soil is generally in
good condition, n there is d favorable
prospect for a good crop of corn and
oats. Illinois has suffered consider
ably as regards wheat, but oats and
corn are reported upon favorably, and
with good weather conditions the farm
ers hould nave a successful year.
There appears to be a shortage in
the supply of cattle and hogs. Indiana
estimates a good oat crop, a fair acre
age of orr, but a severe decline in it's
! original uFhnnt nyncJnnntG i1-nctnaJr ir
said to be in fair supply.
Iowa reports a fair quantity Of wheat
and anticipates a good supply of both
corn and oats. Cattle II hogs are
said to be fewer in number but the
farmers seem to be making an attempt
to increase their live stock holdings. In
Michigan, the fruit crop is generally
reported in excellent condition with
prospects of a good yield. The wealth
er has considerably delayed all spring
work but there apparently is a salts
factory outlook for wheat, coSn, oats,
and potatoes, the principal products.
There is said to be a good supply of
cattle but a smaller number of hogs
than usual. Wisconsin: The general
crop outlook is somewhat improved, and
a large acreage of potatoes is anticipat-
ed in the southwestern part Of the state.
A good supply of lambs is reported but
other livestock does not appear to be
up to normal.
Agricultural Implements.
Manufacturers advise some falling
off in sales, owing to the crop injury
n the increased cost of their fin
ished product. Actual sales are report
ed as approximately the same as last
year for the decreases in some lines of
the implement trade are offset by in
creases in other lines. The high cost
OF raw materials, together with the
increased damands Of labor, are sub
5ects which are receiving the earnest
attention of the large manufacturing
establishments. :
Automobiles.
This line is still operating at ca
pacity, with the warehouse stocks OF
dealers going out, and collection in
good condition.
Building and Building Material.
General building in Chicago outside
of the loop district is active, and a
number of cities which have bene-
fitted by the conditions of the last year
are engaged upon plans of expansion
and construction. The brick business
is reported good, with satisfactory
prospects for the immediate future
Cement is being disposed of in fair
volume and anticipates sharing in
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