The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-06-06
FEDERAL. RESERVE BANK
TELLS OF CONDITIONS
IN FIFTH DISTRICT
Interesting and Timely ReviewPeope Organizing To Meet
Call of Nation For Money-Great Demands Tax Bank
Resources Railroads Plea For More Pay Gen
~ orally Recognized AS Just

slowing IN ana the result OF pending
Legislation is awaited with general in
terest ,Johhers in some lines report
purchases are not being freely made,
and there is some complaint of slow
collections. Furniture and hardware
dealers, including general dealers in
building Supplies. report less activity.
Dealers ia tobacco report good vol
umc of trade, but are much disturbed
by the proposed heavy increase In
taxes i.umher has improved consid-
era h}y lH price, but this is offset by
the reduced output, which - cur
tn lied by labor and shipping condi-
tions. Transportation difficulties. both
in securing materials and moving man
ufactured products, and the difficulty
f4-a'2s manufacturing plants are en-
Countering in securing an adequate
supply of coal even at present high
prices, are important factors IN the
situation. One tohber calls attention
70 the fact that the tonnage was Is
to 80 Ia per cent less year ago.
but high prices have increased his
capital requirements and his risks. re-
sulting in a decreased percentage of
profits.
Demands Arc Met,
Unusual demands in increasing
volume are coming from farmers for
agricultural purposes, owing to uni
versai efforts for a maximum produc-
ton, accelerated by the high cost OF
supplies, fertilizers, labor and general
expenses Although there has been
considerable shrinkage in deposits and
an. average increase in rates of at
least ] per cent In the larger Centers
Of the district, all reasonable de-
manas are being promptly met by
the banks. either from their own re-
sources or through rediscounts prin-
cipally with the federal reserve bank.
Bank clearings show an increase OF
Is per cent. Exports continue 20
show an increase, notwithstanding
freight embargpes. Postal receipts
show slight increase Railroad re-
ceipts show an increase in gross, but
are seriously affected by the increased
cost of operation. The situation of
the railroads is regarded by many as
most serious. if not the most serious
domestic question confronting us. Rail-
road borrowings have about reached
the limits OF credit from every point
of view. there is general complaint
with regard to transportation condi-
tons, and business which the roads
are unable to handle Is knocking at
their doors.
1t wo}tid seem a self evident prop
osition that the roads can only meet
this situation and render the efficient
service. which is mperatively de-
manded b. shippers and our people
generally, by an allowance of in
creased rates. Inquiry In the district
Indicates "A recognition Of this neces-
sity and a willingness on the part of
manufacturers and others to an in
crease in rates, in order that they
may secure efficient shipping facili-
ties. 1t is recognized that the ulti-
mate consumer pays the freight
and that reasonable prosperity can
only be attained and maintained by n
maximum production. the prompt
transportation of which from the pro-
Queer and manufacturer to the con-
sumner is an essential function This
is widespread demand for the me-
cessary increase Of rates and the
prompt solution of the transportation
question"