Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-11-24
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MONEY AND MARKETS.


Tho omfnirv's credit requirements
have. during the period under review
reached maximum l,Vel. Pressure mry
frr n timr continue az his current him
l,N,i Int no substantial incria sc h amt
cipatsd In the demand Tor banking NC
odmmndniiuns. either Tor Crop tinHnsynf
ar Ia meet commercial and intlus.,tnl
requirements. The credit position a
essentially sn'ind and the futur, IL "a
he regarded with confidence,
The hanks nnd reserve institutions
have financed the enormous volume ~
current requirements with 10 weaken
inc IT their reserve strength the De
ginning # reduction in Ia" nEhrcghp
IL thes. ,nuircmonis Il now evident.
1.1ths n reporting member hanks ui ihr
&c ser,, system expanded steadily ur'il
the middle of Octubcr. \ moderate ron.
traction IL now shown. interior lmrh-
IN diverse sections Il the country AZ
moderately Increasing the volume ~
their puI ,hnseg ~ commercial paper. M
evidence 81 the release ~ FUNDS from
other cmpioymcnts. They have niH
,run. IN Il small way. g. reduce III u
borrow lngs With other banks Suth
contraction ~ has occurred ~ not ~
large volume. II Ia important. however
Lscaus,.. IN the present difficult situa'
tion. IL indicates an ability greater thnl
might have been anticipated an the part
II 10th the interior banks and Their
custnmrrf tn Aauidntc outstanding Oh
legations u indicates also thai IN,
futur trend VII be- toward the con
traction rather than expansion ~ such
obligations.
Money Rates.
Oman market rates an commerce.
snlns hay, continued unchanged on an
\ nar cent. level. with country hina'
putchasing Is,rer In iair volume. CAL
mrn,.v was light. ruling throughout
most If ihc period nt from to 10 pet
cent but easing NJ the close "a : uri
cent The continuing high rates w ia,
e,n money market reflected the grnciaI
s.rlngrney ~ credit rather than tho o.
nuir, mrnls a. the stock market, whcr'
charm Huuidatinn continued Throughout
IN, pfrind Both demands fur and ~
for!ngY a. time loans IN securities wer'
nominal. Moderate offerings ~ III"
mcnry may reasonably be eNpcctc'
shortly. as funds arc released from othei
usA. This would result IN lower uii'
taiipns. Prime bank acCcptanc"s w,r'
In active dcrand and IN reduced supi ~
General Conditions.
The determining factor IN the rni!r'
situation continues o. be- the rcluctnnc
II consumers to buy, partly hccaus" ="
the.r expectation that prices may y
even lower. and In part lScausc Of III
rur'ailncnt IT purchasing power "a
large sections of the buying public
Farmers arr not purchasing actively a
present because psiccs ol the product
which they have to offer IN cNchans
have declined sharply. Wage oarncc
hesitate to purchase hccv,uSc their cart
ings are being cur'ailcd hy incrnsiul
nm, employ NJ and IN some cases 10y g.
duction In wages
The adjustment II prices 10 new con
,litions II supply ana demand has prove
difficult Two factors On the hnyini
sid, 81 the equation offer much cncoul
arrnient. however. In comparison will
those classes whose income Increase
rapidly during The period Of rising price.
NE decline In prices which has already
taken place has increased the pur'hns