Imperial Valley press., 1920-09-21
BUSINESS We "
IS MUCH BETTER,
BANK REPORTS
Wells Fargo NcUada National
Bank of San Francisco Re-
Forts LrIsiRess Situation Is
Improving; California Crop
Outlook.

The following on the business out
.ooi> is by the Wells Fargo Nevada Ma
,lCnal Bank will be interesting to I'M
perial Valley people:
The railroads have made distinct
headway within the past month in
earring up traffic congestion and in
ncving freight promptly. The car
! hortage has shown material reduc-
tion. and movement per day per car
las been epedited an a way to give the
railroads new facilities equal ~ the
Iae of many thousand additional
'Teight ears. The roads are handling
large volume of business and their
managers are doing the best they can
. give the country the service which
needs. The taking effect on August
9th of the increased freight and pass
OF rates was an event of great i'm
portance to the American people for
meant that the roads would finally
. enough revenue to provide for
heir enormously increased operating
chcrges, to purchase necessary equip
ment and to show net earnings suffi-
mt in the long run to attract capital.
The Credit Situation
TIE Federal Reserve Banks lately
established a new high record for total
discounts and also fer valume of dis
counted commercial paper. The bank
position has been we'll maintained,
however, the effort being to discrimi-
nate sharply in favor Of really pro-
gether necessarily at time when there
are said to be about five foreign bor-
overs and three domestic borrowers
for every dollar there is to lend. There
S still q large volume of unliquidated
commercial leans which must be paid
eff gradually and in such a way as
rot to cause commercial unsettlement.
Much has been already accomplished
4 this direction in such commodities
IS silks, leather and wool. The coun-
RS loan account has thus been puri-
lied materially and while much re-
mains to be done we may note with
satisfaction that the Federal Reserve
system has shown itself highly eff
eient during the period when its facili
les were being put to severe fists.
The next few weeks will witness the
adjustment of some large corporation
cans IS well as arrangements to make
.L1ther advances to borrowers abroad.
One incident of this credit pressure has
heen a general reaction against eXtor-
tionate prices for merchandise, food
stlffs and other supplies. People
everywhere are becoming impressed
with the necessity of getting better
vaiue for the household dollar, and
owly but surely general business is
5eing- re-cstablished upon lower price
evcl. Besides this the people are saw
ng more than they did in The days of
Easy profits when there were three
icbs for every applicant. With the in
5reaSed immigration, however, and the
reduced working hours observed by the
.extile mills, the silk mills and few
ther industries, the efficiency of labor
Is increasing and the average worker
5 striving harder to do fair days
work.
t'rccder Puying cf Coed Securities
The public is gradually increasing
IS investments in good securities and
~aying off loans which have been con-
t,rued since the era OF Liberty Bond
slotations. Even the Treasury Ger
ificates OF Indebtedness are largely
.rto the hands of individual investors
'cr the records show that cf the 81
SOC 100000 cf those certificates out
standing at the close of July.
S1,940,C00 600 were held by iHdividuol
investors and only $3.50, 100000 by the