The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-03-06
Weekly Review of
Trade Conditions

hanks 81 from t2.20O. 900 900 ts
fb.4Ib. 900 600. depending on amount
II notes issued This enormoui
credit margin seems safe, but Il
must be- remembered That every dol
lar lost from reserves means lose d
SO 10 t25 In lending power. Excesi
reserves OF 5000. 900 600 can ensilS
be wiped out In q week.
Study OF previous cn~e~ shows
that March and April, October and
November are months Of greatest
stress, In which panios are most like
~ 60 occur n government and bank
erH can hold thlngs together THU
spring until after May 49, no crisis D,
likely before October.
Little danger OF money panic like
1907 and 1888. unissH people gcl
crazy and demand coin. Federal re
serve system can issue notes auffi
oient 10 meet all demands No tenn
porary devices like TleniJng houss
certificates will be- nesAd Crisis
probably will take form Of credit and
security market panics Ordinary
folks probably won't know anything
has happened until industries begin
10 slow down.
Recent biz shipments OF gold have
gone chiefly to Argentine. We ows
Argentine trade balance but not SUI
ficlent % explain extraordinary gold
movement We have even blggei
adverse trade balance with Brazil
and yet no gold IL shipr'ed 10 Brazil
F1na ncier tells me action OF British
agents largely explains gold ship
mcnts and crtatle movements Of Brit
ish exchange. He says American
bankers overloaded with British eX
change. expecting expanded British
exports. British agents IN United
states buy British exchange at low
point. demand gold on temporary
rise. ard ship TO Argentine 90 pay foi
heavy British imports Of Argentine
wheat and meat. British purchases
drive exchange rate up temporarily
but they soon decline, 80 there Il
relatively little ordinary commercial
demand
short time ago big shipment Of
Danish butter broke New York but
ter market Foreign cooperative
agent tells me interesting story
abour this lie says IN January
American packers had enormous
stocks Of butter in storage lTfordet
10 Ect rid OF II without breaking ths
American market they sent shiI
load 10 Denmark and dumped Il
there. This broke Danish butter
market nig Danish cooperative In
vertigaied and found American but
ter was sold ~ packers IN Denmark
far below American market, without
any allowance for oeean freight
Danes decided on revenge. loaded a
ship with Danish butter. and. with
out warning. dumped it on New York
market. To CONSERVATION OF Amer
can packers.
INDUSTRY
Nonpartira league claims success
IN state operation ~ mines durina
coal strike. Net proft OF ti.3ls OF
i7.5s, worth 81 coal win probabi,
result In North Dakota ratins
mines on school lhnG
Total shipbuiidine Of world durinf
1919. just reported by Lioyd's. 7Itf.
so gross tons. more than double out
put Of any year before war. Tn
less shipping combines prevent
ocean freifhtN mnst soon fall
Insurance written In United states
in 1918 totals SIC. SOC 600 ooo. equal ts
one fourth total outstanding and dou
bic previous year
CROPS
United states department of agri
euliurc IL nov issuing warnings and
appeals 20 farmers not 10 reduce
acreage Tor spring planting This Is
in striking contrast 60 advice issued
by department IN September. 1913. "a
reduce acreage for fan planting 20
per cent Farmers went Impairment
one better on September advice and
reduced acreage Is per cent Maybe
change In secretaries has changed
policy.
LABOR
Award OF coal commission expect