Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-26
CROP MOVEMENT
BRINGS NO STRAIN
Loans Expand to Meet Sea-
sonabIe Needs Without.
Any Credit Easing.

National Bank of Commerce of New York
The credit situation has continued.
during the period ending September
10, to evidence in a substantial meas
ure the Improvement which had be-
come apparent a month ago. There
has not. it is true, been any easing
lof credit. Banking loans have in
creased in response to seasonal
needs: there has been no relaxation
IN commercial money rates; and lit
tie change in this situation can be
Expected until the major require
ments of the crop-moving season have
been met. Nevertheless, substantial
progress has been made in over
coming the difficulties in the credit
situation.
harvesting and marketing of large
crops are being financed adequate
and without undue strain on banking
resources. While loans are now ex-
pandlng in response to seasonal
needs, as these seasonal requirements
are liquidated considerable reduc-
| ton in the volume of outstanding
credit may be anticipated. Mean
while. through the shifting of cred
its and through the facilities of the
| federal reserve system, pressure on
tn banking facilities of particular
sections is being distributed through
| out the banking system and the
strength of the credit structure as
a whole is absolutely sound and un-
impaired.
| Factors of Improvement.
! A number of factors have facilitated
| the Improvement in the credit out
! look. AS the continued Improvement
| in transportation permits more nor
mai movements of commodities, the
mobility of credits is gradually be-
| ing restored. Progress is being made
| in he
and of loans against them. While the
| downward trend of prices involves
current difficulties, it is a movement
| toward greater rather than less sta
| bility in both the credit and the gen
eral business situation, since it tends
| to reduce the pressure on banking
| facilities and at the same time to
! stimulate the large potential demand
| for goods which increasingly high
prices had impaired In contrast with
| the movement in progress year ago,
! therefore the general trend of bust
ness conditions within the United
! States is in the direction of increas-
| ing soundness and stability.
! Wholesale Commodity Prices.
| Prices continue to move downward
| in many important groups of raw
! products. and of northumberland
materials for use in further manu-
| features. Declines have been passed
!
! lines Unless untoward social and po-
| litical developments should take place
| in Europe, however, it now seems
| likely that in the case OF most COM
| modities the period of RAPID price ad-
| justment has passed, and that fuctu-
atoms from now on will be through
! a gradually narrowing margin Pres-
ent price movements. however, must
| be interpreted with the greatest care
/ Cases in point are those commodities
4 8 ,irl, l.
! ly stable but in which. as matter OF
| fact almost no business is being done.
In such cases. actual values cannot
| be known until trading operations are
| resumed.
/ Future Course of Business.
| Curtailment of manufacturing and
| merchandising activities was lneEita
| BILE while price changes were radical
| in character. On the other hand.
| slowly declining prices require that
business be carried on cautiously,
| with careful thought to the long
i conservative operations. Unwililng-
ness to face the facts in the nope
| of return to another period OF rap
! idly rising prices. and faliure 10 ao
! nit that a new working OASIS mus.
| be found, not only react on me IN
dividuaI interests involved. put on
i the entire business community. For
| tunately the facts have been recos-
| niZed by many interests, Dut IN some
lines failure to do SO IS hahoicappihs
| business. r
| The United States is in more IA
yorable position than any other coun-
| try in the world. If mutual basis
| for transactions is found In the I'M
reasonably well employed. and man
featuring. commercial and financial
! operations will be- maintained at
! healthy level. Delay in finding such
a mutual basis is not only unWlse,
unnecessary Industrial, financial and
! social DISCRIMINATION.
| The condition now prevailing in the
limited States of declining prices and
| of CONSEQUENT hesitation on the part
of the buyer, whether he be manu-
,facturer or ultimate consumer. pre-.
walls in every important country OF
the world The British textile indus
tries have felt not only slackened
curtailed buying in distant markets.
iesnecially India. The boot. shoe and
Heather industries of the United King
ldom are now in state of stagnatlon.
!Extreme dizziness in the main com
lmodity markets is reported from Con-
istantinople. Business in South Africa
lis likewise reported as dull. The
Japanese situation is matter of
common knowledge. Ports as widely
scattered as the Jiraeus and Barran-
bought in large quantities at the
Hood tide of nost-war prosperity.
These goods must now be handled on>
Overwhelmed railways, in markets
|disrosed to be critical of prices.
The rest of the world has become
accustomed to the absence of the
countries of central and of eastern
Europe as producers and consumers
of manufactured goods, but their
continued inability to buy certain
l<.I, of a q
lcreasingly felt.
| If the business hesitation now prev
alent in the United States were pecu-
lliarly an American condition, a quick
return to condition of activity
could be anticipated An adjustment
iof international trade, however, will
require long period for it's compile
ltion. American business must depend
primarily on domestic demand, with
uncertain foreign demand.
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