Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1921-02-04
FINANCE ESTIMATE
NEW YORK BANKER
COVERS Bic SCOPE
GUARANTY TRUST 60. ISSUES A
STATEMENT or SURVEY GOV.
ING NUMER0Us INTERESTS.

49,
From many competent sources IN
widely separated SECTIONS comes the
opinlon that the United States has now
definitely entered upon it, return 90
normal conditions The average bust
ness man has come o. see that con.
iinuance Of wartimc prosperity. with
Its attendant circumstances q crcd!;
initiation. high wages hlgh prices. rcck.
les spending. and Public and private
waste. Il impossible. lie has come TO
soe also that the black pcssimism ~ a
few months ago Ia unIusiificd hy any
intelligent estimate of the economic sit
uation. Worry and fear have given
way 20 clear Judgment ana courage
The disposition now N e. face tho facts
calmly and o. make such uS, ~ them
~ accords With the peculiar initiative
and enterprise II our pcolc. Judg'
Gary rfers 10 the Phenomenon as the
better "tempor Of business men" Gov.
ernaT Harding ~ the F.dc-al Resolve
R'ard calls q "A more normal state
az niEd" Others have then own *
pressions, but all agree that the pre.
vailing feature " the huslress outlook
v ius, now the change that has CON.
uver the mental processes q business
men.
9 koihlng has happened 20 brlng about
this change. except possibly the failure
81 scme Of the dire predictions thu,
have been aEitating the country. rar.
rcnhrly in recent months. Those who
have ffor The beginning held that fun
dancntal and net cphrfnsrl factors
world determinc the couInc Il ccunolnie
eeents IN this country have ncve,
thought that there was imminent dan
ger OF any such collapse as vas fore
cast IN quarters less well lnfur,n,d n
less capable q interpreting conditions
Their attitude seems now 10 h. iusifiad
by the coun,ry's change of splrii ra,h
er than by any turn q events. II NAV.
he added that there could no, po~sibl,
r = better foundation Tor an a s,uai 70
vivai Of business.
The Cost of Living.
The results u an ANALYSIS er ,bc
course - living costs during the rSrlos
firm June I. 1914. 20 pccemher II
1870. In thirty; two cities have b.,or
made public by the Department Of In.
Dor. The figures include cost of food
which u taken AZ representing a. per
cent OF essential expenditure or the
FAMILY; clothing. 1875 per cent OF expep.
uiture; housing. l4.s per cent; fuel ana
hght. ~ per cent: furniture and FUR.
nishings. - per cent. and misc.llane
Gus, 49, pr cent. The analysis sbo,,.
that after a continuing lncrras. in IN,
sost o. almost every necessity - lie
rom June !. 1914 uniil June. 1890 a
nrcak came during the las, six month,
oi 1879, no decrease. however, occurrina
IN the cost OF housing. fuel ana nrht
During these six months housing show
ed an increase ~ So per cent. and fuel
ana hght. s6.f per cent. For the ertir,
period OF six years and a half the heav
lest increases were In the prices N
clothing and furniture ana furnish,nea
Detroit Michigan. leads all cities IN he
fise OF living costs. the increase there
neing computed at i3s per cent. IN &c
last June. On December 81. las,. llylnr
costs there had dropped 20 iiS.s no,
cent above The level IN June. 1914
Federal Reserve system.
Inc consolidated statemeD, 81 the
Federal Reserve Banks for las, well
shows that an unprecedented reduction
IN Federal Reserve Mite circulation has
taken place since the last we.k Al m.
semocr Total cancellations since Their
nave been more than $3.50. oOO. 900. This
cancellation followed n reduction ~
nearly s2ee.00o.o0e In rcdlscoun,s
which leaves the item Of bills held.' An
the statement abou, tss5 Ooa. 90 below
what II was. during the last week In
December. While circulation stu, 20
mains some $500 200 600 ai.o,. vha, \,
was IN the corresponding -vcns las,
year. increases IN cash and stocks a,
gold have given the lanar e--,,a n.
serves Of about ssei oeo 600 tn hlghei
figure reached since C'ioi.r .. 1913
aud the reserve ratio 81 the .5rt,,n Al
tne enc Of last week stood az sS.i. the
highest ratio reached since octobcr "a
1913, The condition OF excess re.
serves representing the base upon
which loans and circulation could h.
exf<nded by 5000. OOe. coo wi,hou, i'm.
pairing the legal reserve ratio. and the
msrEfr now existing between the legal
reserve ratio and the actual reserve IA.
to- are eloquent 81 the soundrass Of
the system and its ability o. NEE, any
eoEceiyable contingency.
Our Foreign Trade.
While business sentiment IL much I'm.
proved. with prices falling 20 levels
sure soon 20 stimulate revival Of buy.
ana aud the sltuatl n of the banking re.
sources Of the country such as 10 IN.
snlre confidence. 1, IL the oplnlon o,
financial and Industrial leaders that The
larger economic future ~ this country
images upon the successful solution Of
the foreign trade problem. Much i az.
pected Of the new Foreign Trade
FINANCING Corporation. now being ar.
CANNED under g. Edge Act by renro.
sentative hankers.
Railroad Payments.
Tho decision of the controller az IA.
treasury that the Transportatlon Ac,
does not permit him a. make martial
payments b. the government 10 The
railroads on account OF the amounts
which were guaranteed 20 the railroads
under the guarantee section Of the Act
has created a serious situation. accord.
ing 20 the testimony Of railroad exec
utises who have appeared b.fore the
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