The Birmingham age-herald., 1920-03-01
SPECULATION ORGY
 CHECKED AS BANKS
 TIGHTEN UP LOANS
Federal Reserve Board Re- ports Business Conditions Favorable With Tend. ency to Lower Pro-
 duction
sx As.sslstsa Frs,

Washington, February 29.-Earsy ending of the gen eral expansion which has characterized. war and irnmediate postwar periods were forecast in . ststenhnt summarizing February busi- ness conditions issued tonight by the federal reserve board. The upward movement of prices. so far ss the boaryf could ascertain, generally had not met with any check.
 Financial and banking authorities everywhere were asserted to be lookin 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 accomplished as meaning that "rhS orgy of speculation" had been apco>f lutely checked, there was said to bc the indisputable evidence that banks were exercising greater degree of diss crimtnation and Judgment in complyinG with the demands of Their custemcrss
 '.Throughont practically all of the reports of federal reserve agents, ths statement said, there runs plainly q recognition of the existence of an |oyerstraned condition of credit and o< some continued tendency toward spec- ufative operations. High living costs and the upward movement of prices iidNe dppdI.clltlS not NDCCn CDcCkeu.f dI- though there is decrease in prices in certain lines and tendency toward re,- stricted trade in others. Interest rates are rising in most districts, while banks are exercising a greater degree of dis elimination and judgment in meeting the demands. of their ciistomersr
 HIGH INTEREST RATES
 The increase in interest rates ns8 had the effect of lowering security <k-A AL. II the best investment securities have suffered in this respect 1t also has had the effect of forcing a snrinkage or contraction in. the volume of trading in all classes of securities, the magri- tude of which was regarded as alarru- ing by the board several months agos Tn some federal reserve districts thero were indications of reduction. in th0 volunes of speculation in commodities
 The effects of the increase in dis- count rates" the statement continued. made themselves evident n a. nlord conservative attitude on the part oS member banks with respect 10 indus- trial expansion and ils the. cutting ot rrn,n1if-r~pts on speculative account
 csor.track33r o --l~tsl i fssN NJ < ssl5f 4ls .s iiss..isM M .,s sss ssk etg4t fatts ss Sssy x ks ? X 1icss cline fl sak fesosits bSfNkell fasa financial eenters and eise~ nesso .ssA.I occurred, q part being due 10 the with- drawa of government funds. Very great difficulty placing both cornmer- cial and conservative investment se- curitics iii satisfactory quantities is re- ported by dealers
 ACTIVE SPRING SEASON
 General prospects at the close oE February were for an active and pros- porous spring season in all lines, the statement said. Agricultural prospects were said to be ''reassuring.v and tho curtailment in exports. dug to the ex> change situation. while undoubtedly beginning to make itself felt. were bed lieved by many of the banking authors ities soon to be of benefit to the conS sumner rather than injurious. It wad pointed out also that there was tend dency to resist the advance in prices and that greater care was being excrs cised in purchasing. all of which were regarded as favorable symptoms" General manufacturing was reported very active all over the country.
 Wholesale trade conditions were said to be prosperous almost throughout the country In reporting + dividua1 lines the statement remarked that the demand for good grades o. shoes, res gardless of price, seems to continues
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