Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-08-26
RESERVE BANKS To
AID IN MARKETING
Of COTTON CROP
Encouraging Statement Is
Made by Governor W. P,
G, Harding Larger Loans
Possible This Year

That banks in the cotton belt, in
cases where they are not overloaned
in other directions, can make much
larger loans on cotton this fall than
ever before, and that federal reserve
banks will do all they can to as
sist in marketing the cotton crop. is
the encouraging statement of Gov
ernor w. P. G.. Harding, of the fed
eral reserve - board, in the August
humber of the Business Review OF
|, the Federal Reserve Bank of At.
lanta.
Governor Harding denies elnphati-
cally that the federal reserve board
ever has issued instructions to mem
berf banks not to make loans on cot
toll unless it had been sold already
for prompt shipment, and that the
federal reserve banks stand ready
to do "al1 that can reasonably be
expected of them" when it comes to
discounting loans on cotton. Gov
ernor Hardings statement is expect
ed to have the effect of bringing
about satisfactory marketing of
the cotton crop this fall.
Still further reductions in prices
are predicted by the Business Re-
view, which declares the buying pub
lie still refuses, in the expectation
that lower prices are coming, and to
buy heavily at price-cutting sales
and that merchants desiring to rid
themselves of stocks have accom-
plished this only to a limited ex-
tent.
The Business Review, speaking of
general conditions in the southeast.
says:
Improvement in the condition of
agricultural crops Of the district dur
ing July had lent encouragement and
confidence to business generally.
However, late reports of damage to
crops by excessive rains the first
two weeks in August have been
somewhat discouraging. The general
trend of prices in principal lines in
this district is noticeably downward,
although there have been no specta-
cular developments along this line.
Lower Prices Expected
"The month of July has seen a
continuation of price-cutting and
large sales advertised by stores de-
string to rid themselves Of their
stocks, and this has been accom-
4 plished only to a limited extent. It
] II evident that the buying public
.confidently expects lower prices and
is willing to buy only for actual
needs until prices reach a lower
level. With a return to a lower and
more stable price basis, the public
will come into the market more
actively, and, general stimulation
OF business will result.
"a majority Of reports received
q from wholesale grocery firms in the
district show substantial reductions
in the money volume of sales dur
ing July as compared to sales for
June Most reports show increases
over sales for July, 1919, ranging
from per cent to as high as IS per
cent and 20 per cent While there
may be some occasional reaction, the
opinion of the trade generally indi-
Gates a gradual decline in prices.
THE increase in money volume
of sales by reporting Wholesale dry
goods firms ranges from 1874 per
cent to 114.2 per cent over sales of
June. All reports show decreases
as compared to July, 1919, ranging
from 17.2 per cent to 37.5 per cent.
Buying is limited to actual needs,
and lower prices are looked for.
Comparison of sales during July
and June by wholesale hardware
firms vary from a decrease of 81
a per cent to an increase of 55.4 per
cent. Compared to sales for July
crease of 25.3 per cent, while a ma
dority of reports show increases,
sanging up to 572 per cent. While
there is some expectation of lower
prices later on, there seems to be
no immediate prospect of a material
change.
wholesale shoe firms report in
creases for July over June as high
as SO per cent, while in only one or
a two cases are decreases shown. Only
one report shows an increase over
July last year, decreases in other
instances ranging from 6 per cen to
% per cent The downward ten
dency is expected to continue, but
by long swing rather than pre-
cipitately. Wholesale cancellations
of orders during June and July are
now to some extent being reinstated.
GAS a part of this review is print
ed a statement showing composite
results of reports by wholesale
firms, and a similar statement show
ing the condition Of retail trade dur
per cent is shown in net sales. for
the district, over July last year. An
Increase Of 45:7 per cent is shown in
stocks on hand over the same month
SIS per cent over stocks at the end
# of June. 192O.'
Cotton Crop Condition
The condition of the cotton crop
in the states of the Sixth federal
reserve district on July rs is re-
to be better in every state than it
was at the same time last year.
While the condition of the crop in
Georgia showed a gain of 5 per cent,
representing approximately 100000
pounds of lint of cotton, there was
an appreciate decline in some other
parts of the state, says the bank.
conditions are reported better ia
ss::uh Georgia thar in north Georgia.
EcaJy rains and the boil weeVil have
made inroads on the crop.
The Florida crop is reported to be
Improved somewhat, the Louisiana
crop to have deteriorated six points,
the Mississippi crop to be substan-
TALLY improved, and the Tennessee
corp to be decidedly improved Rains
aid the boil weevil threaten all the
states, however, declares the report.
The condition and estimated pro-
uuction of other crops in Georgia the
bank gives as follows:
Condition Estimated
Per Cent Production
Corn " 49, .: 81 g., 793, 900 blu.
Wheat " -, .. So Pill 900 bu.
: Oats " " .,.,. sc 1854, 900 bu.
Potatoes " w 80 1852, 900 bu.
Sweet Potatoes 49,, SO 1912. 900 bu.
Tobacco ~ IS 2O979, OO0lbs.
Peanuts . 81 1892, 900 bu.
Apples - "a 500 900 bu.
Peaches . ,, IS 3,616, 600 blu.