Arizona republican., 1920-07-25
SUNDAY MORNING. JULY 25. 1920
Not by years but by disposition is wisdom acquired.
 -Plautus.
Credits

We for time been hearing of tight money" And money has for some weeks been hard to get and higher rates of interest than had pre- walled for years have been paid. The ughtness really began last November when the Federal Re- institutions began Ito curtan non-essential borrowing in order to preserve money requirements looking forward to the greatest of all requrementsthe crop movement
 But money did go into hiding then since, o blowing of a financial storm for there in sight and there will be none There was and there intended to be. no curtai- ment total credits but only of loans for non essential purposes.
 There has been no reduction of the aggregate volume of credit outstanding. The efforts of the banks have simply limited further credit expan- sion and the volume of credit at the beginning of this month was greater outstanding the close of last year. The failure effect normal snredit liquidation beginning of the movement demands has in large measure been due transportation difficulties which have ob- structed free commodity movements and occasioned @ihe credit stringency which became pronounced earlier in the year.
 A movement by the federal reserve banks \ further restrict credit taken to afford measure of relief the high of living by compelling the release of large stocks of goods which credit enabled holders store for further increase of prices That restriction had to z be rather gngerly applied, for too sudden and rigid application would have disarranged the mercal fabric and have resulted disastrously to holders of stocks of goods. who in way ponsibe for high prices.
 of credit, the state issued by the National Commerce of New York says:
 Were the still operating under the old banking system. the outlook be serious. But since the banking of the country has become well co-ordnated under the Federal Reserve system, e with it's fexbility for meeting such situation there is apprehend serious difficulty in earing for essential credit requirements during the Approaching In this connection it may be noted that the steady outflow of gold from this aeountry has been supplanted at least temporarily eby moderate net inward movement of the metal, and this in relieves of pressure against credit facilities. Commercial and industrial credit requirements moreover, may be expected to become somewhat less pressing should the tenden- cies toward price recessons and reduced of business, which discussed hereafter continue. While credit will be available to meet the country's essential requirements there continues be prospect of it's being available except for
 Further slight declines in the wholesale prices ready in progress continued during the month from June 16 to July Is. The downward movement tended lines in which evident a month ago. among them only materials. but classes of manufactures, and further worthy declines unlikely in the future. The beneficial effects which eventually accrue from the re-establishment of business seryative lines will outweigh the temporary ships which result, although conditions may become temporarily difficult for sections of the busi- community