The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-03-03
BUSINESS MENDING
IN EIGHTH DISTRICT
STATES SUMMARY

some excerpts from the business sum
mary OF conditions for January BY the
Federal Reserve bank for the 81. Louis
district, which includes Memphis, give
reason FOR optimism, as the following
There has been some improvement
~ general business conditions in this
district during the past month. De-
cllnes In the prices Of certain Commodi-
Ties have stimulated buying and many
concerns report increased activity.
However. the deflation OF prices has
not yet gone far enough to induce
vigorous operations generally. Never
thelesS, reports Indicate that business
is gradually resuming a normal basis.
and with further readiustments OF
prices a marked revival is anticipated.
business men as a rule continue optt-
mistic.
Iron and steel manufacturers report
that normal demands are gradually fill
ing the gap created by the cancellation
-of war contracts. Manufacturers Of
boots and shoes report an active bust
ness. The price Of leather has remained
firm. There has been a marked re-
vision downward In the price OF cotton
goods and wholesalers and jobbers state
that this is having a deterrent effect
on their business. Reports indicate that
the flour milling industry Is improving,
but that II Is still considerably below
normal. Considerable improvement in
the wholesale grocery trade Is noted.
The drug line also shows increased &C
ttvity. Wholesale millinery houses re-
port that customers are buying freely.
Some of the large department stores
and other retail houses have begun TO
revise their prices to a peace basis so
as to attract consumers. The mid
weather has retarded the sale Of sea-
sonable merchandise and many sales
are being held to dispose Of winter
goods. Retail merchants generally re-
port a better business than at this time
last year.
Cotton continues to move slowly in
the southern portions of the district,
and this is having a deterrent effect on
business. During the past month a
movement has developed to induce
planters to reduce their cotton acre
age, This will not only result in the
South raising more food, but will also
doubtless help in maintaining the price
of cotton.
The degand for. money in this dis
triCt has improved somewhat. This is
reflected in the accommodations eX-
tended member banks by the Federal
Reserve bank. on Jan. 20, 1919, the
Federal Reserve bank of st. Louis held
member banks paper amounting 70
1857, 1894, and on Feb. 20, 1919, II held
S53, 500, 1856, showing that only $S,973,-
29S was liquidated. During the previous
3O-day period $13, 759, 1866 was liquidated.
The bank rate to customers has be-
come a little firmer, 1t now being from
5h to 6 per cent in the large centers
and somewhat higher in the outlying
districts.
There has also been a slight revival
in the commercial paper market during
the past month. Brokers report an in
creased demand from some of the coun-
try districts, though very few Of the
large city banks are buying. The COM
merCial paper rate now ranges from 5
to SO per cent,
Postal receipts during January in st.
Louis, Louisville and Memphis all show
increases in comparison with the same
month last year. In Little Rock a
slight decrease Is shown.