The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1920-02-04
ACTIVE TRADE
STILL PREVAILS
Extravagant Tendencies
More Pronounced,
However.
DANGERS POINTED OUT
Excess Prices, Hardened
Credit and Overtrading
Noticeable.
DANGERS POINTED OUT

Reporting heavier trade demands
and in many cases greater prosper
ity than ever before in the history
OF their districts, Federal Reserve
agents nevertheless point to shor-
tened lending power. less easy
credit and dangers of various kinds
growing out OF eNtravagance. e1-I
cessive prices and overtrading. La
Dor conditions have been. on the
whole. encouraging and the demand
Tor products strong and active.
Although emphasis IL thus placed
upon spending power and the vol
ume OF business. many countervail-
ing considerations are receiving AT
tention heretofore not granted them.
From district No. 1 IL is stated that
never in the history Of the mer-
camille life Of New England wa.
Christmas trade so enormous. ana
never was purchasing power exer-
cised with such extravaganza" Yet.
in spite Of the orgy Of spending
the people of New England ha,r
put into it's savings Institution,
during the past year approximately
$3.50 900. 900. There IL no reason 4,
become pessimistic with respect TO
existing conditions"
Demand Heavy.
In district No. manufactur,,..
business continues 20 be offered IN
large volume" and although reta,,
trade shows a natural falling ON
from the holiday level. Il Is I'm
excess Of last January" The store.
report difhculty in procuring sun
plies due to the heavy demand. COL
lections are excellent ana cash nav
ments comprise a large part Of to-
tai receipts"
In district No. Z the present de-
mand for manufactured products
and the present fever OF ortrsvs
gance has not reached its zsni,b
while foreign trade is rapidly de-
veloping.
In district No. "fhe end Of The
year brings a repetition OF the ~
ports Of unprecedented prosp.rit,. e.
Farmers. merchants. manufacturers
and bankers have all had record
years. Collections were never hot
ter and many old accounts have been
liQuidated.
District No. 6 notes that the -pub-
lie mind is giving more Thought 4,
the economic situation" and vet
there has been little il any slatE-
ening in the wholesale or retail
trade during January. All lines re-
port very limited stocks on hand
and new supplies difficult TO OBJ
tain"
In district No. : demand for
commodities outruns any possibility
Of providing a supply. The general
volume 81 business in the MiddIo
West continues at a high level.
Farming communities continue u
enjoy the prosperity which has re-
suited from several years Of very
high prices. Nevertheless. there is
running through the banking min
in the Middle West the thought
that this country can not long
continue the extraordinary volum'
OF foreign exports" while there has
been a rather liberal use Of credits
in all lines"
Work Plentiful.
District No. finds that -the boil
:day trade was in many instances
unprecedented. while prices continue
high. demand for money at a record
level. and collections good"
In district No. 9 there is "sUficient
work for all who care to work.
Factories are running full time and
booking all the orders they can all"
and there is a continuous demand
for a larger supply Of skilled labor"
District No. 10 reports that 1919
was a record year of business ef-
fort and that at the opening Of
the new year th2 business situa-
ton continues active. while pay
men.s for the first week in JanU-
airy are from l0.4 per cent to 12.1
per cent better than in the cor
responding week last year. ''Th"
tremendous buying power OF the
people" has continued.
In District No. IL no strikes or
labor disturbances are in progress.
bank earnings have increased. re-
tail trade continues active. averaE-
ing a. per cent greater than in
December. 1918. and there is a
stronR demand for all classes Of