The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-09-25
AS TO- MONEY
And CREDITS
Credit Situation Improved Dur
ing September But Money Re-
mains Tight
LOANS ONLY
SLIGHTLY INCREASED
Price Declines Have Continued
in Many Important Groups OF
\ Raw Products

ft4tt tgstHpsr -- 'n a.s..
New York, Sept. 2S.--The Bank of
Commerce has issued the following
statement on the money and credit
s.tuation, as 1T affects business
throughout the country: A
The credit situation has continued,
during the period ending September
lt. to- evidence i'm substantial meas
ure the Improvement which had be-
COME apparent q month ago. There
has nor 1t Is true. been any easing OF
credit Banking loans have increased
In response to seasonal needs; there
has been no relaxation in com mercial
money rates: and little change In this
situation can be expected until the
major requirements Of the crop-mov-
ing season have been met. Neverthe-
less substantial progress has been
made hi overcoming the difficulties in
the credit situation.
Harvesting and marketing of large
crops are being financed adequately
and without undue strain on banking
resources. While loans are now ex-
panding in response TO seasonal needs,
as these seasonal requirements are
liquidated a. considerable reduction in
the volume OF outstanding credit may
be anticipated. Meanwhile, through
the shifting Of credits and through the
facilities of the federal reserve sys-
tom, pressure an the banking facili-
ties OF particular sections is being dis
tributed throughout the banking sys-
tenn and the strength of the credit
structure as a whole is absolutely
sound and unimpaired.
A number OF factors have facilitat-
ed the improvement in the credit
outlook. AS the continued improve
ment in transportation permits more
normal movements of commodities
the mobility OF credits is gradually be-
ing restored Progress is being ma ie
In the LIQUIDATION OF commodity stocks
and OF loans against them. While the
doyRward trend of prices involves
current difficulties, 1t is movement
toward greater rather than less stabil-
ity In both the credit and the general
business situation. since 1t tends to re-
duce the pressure on banking facili-
ties and at the same time to stimu-
late the large potential demand for
goods which increasingly high prices
had impaired. In contrast with the
movement I'm progress year ago,
therefore. the general trend of busi-
ness conditions within the United
states Is In the direction of increasing
soundness and stability.
Prices continue to move downward
In many important groups OF raw pro
ducts, and OF semi manufactured ma,
terlals for use In further manu-
factuies. Declines have been passed
ON to the finished product I'm Some
lines. Un'ess untoward social ana po-
litical developments should take place
IN Europe, however, 1t now seelns
likely that i'm the case of most corn
modities the period Of rapid price
adjustment has passed, and that llIc-
tuations from now on will be through
a gradually narrowing margin. Pyes.
ent price movements, however. must
be interpreted with the greatest care
Cases I'm point are those commodities
the prices of which appear super
hcialiy stable, but i'm which, as a mat
ter OF fact, almost no business is be-,
ing done. Ia such cases, actual values
can not be known until trading op-
eiationa are resumed.
Curtailment rf manufacturing and
merchandising activities was inevi-
table while price changes were radical
In character. On the other hand,
slowly declining prices require that
busihess be carried on cautiously
with careful thought TO the long fu-
ture, but do not preclude sane and
conservative operations. Unwilling
ness 20 face the facts in the hope of
a return TO another period OF rapidly
rising prices, and failure to admit
that a new working basis must be
found, not only react on the individ-
ual interests involved, but on the en-
tire business community. Fortunately
the facts have been recognized sby
many interests. but in some lines fail
pre to do so is handicapping business.
The United States Is in Il more IA
rorstble position than any other coun-
try i'm the world. III a mutual basis
for transactions is found i'm the imme-
diate future, labor Will be kept rea-
sonably well employed and manu-
featuring, commercial and financial
operations will he maintained at a
htoiNny aNNbAs lItldN III lllluln& Sutn
mutual basis is not only unwise
but II might well result i'm entirely
unnecessary Industrial, financial and
social disorganlzation.
The condition now prevailing in the
United states Of declining prices and
Of consequent hesitation ON the part
OF the buyer whether he be inanufac-
turer or ultimate consumer, prevails
In every important country of the
world. The British textile industries
have felt not only a slackened domes-
tic demand, but the effects of curtail-
eel buying I'm distant markets, especial
ly India. The boot, shoe and leather
Industries of the United Kingdom are
now In a state uf stagnation. Extreme
dullness In the main commodity mar
kets is reported from Constantinople.
business In south Africa Is likewise