Great Falls daily tribune., 1920-03-01
BANKS TIGHTEN
ON CREDIT LINE,
STEADY NATION
Federal Reserve Board
Optimistic as to Fu-
ture Conditions.

Washington, Feb. 29.-Early ending
of the general expansion which has
characterized war and immediate post
war period were forecast in d state
ment summarizing February business
conditions just issued By the federal re.
serve board. The upward 'noyetne mt of
prices, SO far as the board could as
certain, generally had not met with any
check.
Financial and banking authorities
everywhere were asserted to be looking
more seriously at the general situation
in credit and beginning to urge the
adoption of conservative policies. While
the review asserted that this could not
be accepted as meaning that the orgy
of speculation were exercising a
greater degree of discrimination and
Judgment in complying with the demands
OF their customers
Living Costs Unchecked.
Throughout practically all of the
reports of federal reserve agents." the
statement said, there runs plainly a
recognition of the existence of an over
strained condition of credit and of some
continued tendency toward speculative
operations. High living costs and the
upward movement Of prices have appar-
emily not been checked. although theirs
IS decrease in prices III certain lines
and tendency toward restricted trade
IN others. Interest rates are rising in
most districts. while banks are exer-
cising a greater degree of discrimination
and Judgment in meeting the demands of
their customers.
The increase in interest rates has
had the effect of lowering security quo
tatlons, the board found, as even the
best investment securities have suffered
IN this respect. 1t also had had the
effect Of forcing shrin6age of contrac-
ton in the volume of trading in all
classes of securities. the magnitude of
which was regarded as alarming by the
board several months ago.
Reduction in Volume.
In some federal reserve districts
there were indications Of Il reduction in
the volume of speculation in commo1i-
ties.
contraction of bank credit was not.
however. exactly general throughout the
country, bat the reduction reported in
the New York district was partially
offset by an increase elsewhere 4 de-
cline in bank deposits, both in the
centers and elsewhere, has
occurred, part being due to the With
draWal Of government funds. Very great
in placing both commercial and
conservative investment securities in
satisfactory quantities is reported by
dealers"
General prospects at the close of
February were for an active and pro
sperous spring season in all lines, the
statement said. Agricultural prospects
were said to be ''reassuring' and that
the curtailment in exports, due to the
exchange situation, was undoubtedly
beginning to make itself felt We're be-
lieyed by many of the banking authorities
soon to be OF benefit TO consumers here
rather than injurious.
More Care in Buying.
1t was pointed out also that there was
a tendency to resist the advance in prices
and that greater care was being eYercis-
ed in purchasing, all Of which were re-
garded as favorable symptoms.
General manufacturing was reported
very active all over the country.
Wholesale trade conditions were said
to be prosperous almost throughout the
The statement remarked that
the demand for good grades of shoes.
regardless of price, seems to contiue.
and shoe price lists for the new season
are higher than ever.
Some Improvement was noted In gem
eral labor conditions. There was an
''unfayorable aspect, however, a ten