Arizona republican., 1920-03-01

the adoption>of conservative policies. While the view asserted this could not be accepted as meaning that the "orgy of speculation" had been absolutely checked, there was said to be indisput- able evidence that banks were execis- ing a greater degree of discrimination and judgment in complying with the demands of their customers.
 ~Throughout practically all of the reports Of federal reserve agents" the statement said. there runs plainly a recognition of the existence of an over stra ined condition of credit and of some continued tendency toward speculative operations. High living costs aid the upward movement of prices have ap- parentIy not been checked although there is a decrease in prices in certain lines and a tendency toward restricted trade in others. Interest rates are rising in most districts. while banks are exercising greater degree of discrimi- nation and judgment in meeting the demands of their customers
 The increase in interest rates has had the effect of lowering security quota tions, the board found, as even the best investment securities have suffered in this respect 1t also has had the effect of forcing shrinkageA orr contraction in the volume of trading in all classes of securities, the ma gnitude of which was regarded as alarming by the board sev- eral months ago. In some federal re- serve districts there were indication of d reduction in the volume of specula- ton in different commodities.
 "The effect in discount rates" the statement continued, made themselves evident in a more conservative attitude on the part of member banks with re- spect to industrial expansion and in the recruiting of commitments on specu- lative account.
 Contraction Not General
 "Contraction of bank credit was not however exactly general throughout the country, but the reduction reported in the New York district was partially offset by-an increase elsewhere. A de- cline in bank deposits, both in the financial centers and elsewhere, has occurred a part being due to the with drawal of government funds. Very great difficulty in placing both com merciai and conservative investment securities in satisfactory quantities is reported by dealers
 General prospects at the close of February were for an active and pros porous spring season in all lines, the statement said. Agricultural prospects were said to be "reassurring' and the curtailment in exports. due to the ex- change situation, was undoubtedly be- ginning to make itself felt and was be- lleVeC by many of the banking author ities soon to be of benefit to the con- sumer here rather than injurious. It was pointed out also that there was a tendency to resist the advance in prices and that greater care was being exer- cised in purchasing all of which were regarded as favorable symptoms
 Industries Active
 General manufacturing was reported very active all over the country.
 Wholesale trade conditions were said to be prosperous almost throughout the country. In reporting individual lines the statement remarked that the de- mand for good grades of shoes. regard less of price, seems to continue, and shoe price lists for the new season are higher than ever.
 Some improvement was noted in gen. eral labor conditions. There was an unfavorable aspect" however. a tend ency reported from various districts to- ward a restriction of output. Even in those cases. it was shown, the opinion was occasionally expressed that the ef- feet of the restrictive policy is begin ming to be understood by those prac- ticing it as injuring them as much as any other class.
 The most serious situation in the labor field is that of farm workers. A genuine scarcity is noted, which the board feared might result in a reduc- ton in farm acreage. This was said to be particularly true to the south- west and some apprehension was felt as to the solution of the problem in that region with the spring season coming rav, in