Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-08-01
N 0nfhly Report Of Crop And
Business Conditions In The
9th Federal ReserUP District

BUSINESS Lone
9th Federal
Continued from pass 49,
Nor DO these applications Tor aid CON
note that unemployment took place
recently for the intensity Of unempioy-
menta and Its effects, all Of the appli-
Giants. They do indicate, however,
the intensity. OF unemployment and Its
effects. rather than the extsnsivehess.
Retail Trade.
During the month .of June eleven
stores in the Ninth Federal Reserve
district reported a falling on In sales
>of nearly II per cent frotn, the figure
for June q year ago. For the first
half year Of 1871 sales have been 2
" l6 per cent lower than during the
on hand on June 30 were down 8 per
cent from stocks at the end OF May
and ~ per cent from stocks at the
end Of June -ef last year. The fact
that both sales and stocks in dollar
values are lower this year than last
must be- interpreted to. mean both that
the buyers strike which commenced
,rAeASI 4 S0&& N ckAAA OA ana AI4hSt ~ 1SGC
have declined to some extent in the
retail trade, making dollar amounts
less this year than last for the same
physical volume Of. trade. Moreover,
last year retailers were overstocked
while this year stocks have been pared
to the, quick.
The turnover Of the reporting stores
was lower In June than in May az in
t.dicated by the fact that the index OF
turnover, which 10 an inverse. has
risen from 1858. Outstanding orders
per cent OF total purchases during the
year 1920.
Volume Of Business.
Payments through banks in IL
clearing house cities Of the Ninth Fed
eral Reserve district showed an in
crease of 10 per cent In June over
May, but there was q decline of 10
per cent from the figure for June,
1920. The increase in payments in
June over May was shared by all of
the cities but Billings. and Fargo,
which showed declines Of i per cent
OF less. AS compared with June of
a veal ago, all the cities showed de-
clines. Comparisons OF increases or
decreases in payments through banks
between consecutive months in 1921
and in 1920 are and will be valueless
for the next few months, because in
this district the peak Of business &C
tivity and of prices occurred III the
spring Of 1920:G and from that time
readjustment has taken place. caus-
ing declining prices and a lessened
volume of business, which has OBJ.
scured the seasonal trend Of business
activity.
Credit Conditions in the Northwest.
The total accommodation extended
to Ninth district member banks by
this. Federal Reserve bank increased
more than 7 million dollars between
June 1 and June 20. This extension
of loans was accomplished by borrow.
ing from other Federal Reserve bank.
more than 3 million dollars, by the
redemption Of three million dollars o.
certificates of Indebtedness purchased
from the United States government
under the Pittman act, and by a re-
duction in u reserves. Member bsnl
deposits with this Federal Reserve
bank increased nearly 3 million dol
lars, while u notes in circulation de
clined more than 3 million dollars
The increase in total accommodate,
during June was considerably create,
than a year ago as the four week,
ending June Is, 1920, recorded al
!, increase of but one million dollars
. The demand for credit accommoda
> ton was considerably relieved durinl
the month Of June by the extraordi
nary movement of grain which tool
] shipments for the month. This is nor
fully described on another page II
the discussion Of the grain movement
, In the three weeks from June q
5 to July 20 the serve bank decrease,
! Q million dollars whereas a reduction
! of s millions took place during tn
three weeks ending July 16 a yea
8 ago. Our rediscounts with other Fed
r eral Reserve banks were reduced ~
millions, our reserves declined abop
l az millions, while u net redemp
lions. and our member bank deposit
were practically unchanged. .
Thirty-five selected member bank
in the larger cities in this district dur
= ing the % day period ending June %
: extended their accommodation to thet
!. customers to the extent of more thai
6 million dollars, which was accom-
plished' by borrowing and ~rediscoupt
v ing at the Federal Reserve bank les
! than 4 million dollars. Their net de
mand deposits declined more than
millions while time deposits increased
: one million. and government deposit
increased 4 millions. The deman'
I for loans to carry city real estate ha
not abated as shown by the fact tina
! the foreclosures in Minneapolis alon
: were greater in number and amour
during the month of June h dur
ing the preceding month Of May o
IN the month Of June in the preceding
year, which Is more fully discussed il
a separate paragraph.
The customary interest rates pre-
vailing in the local market remained
unchanged between June is and Jul.
Is except for a reduction of one-hal
per cent to a rate Of IN per cen o.
three to six months collateral-secure'
time paper. There we're increases o
oneaha1f per sent in the highest an
lowest quotations for various kinds 0
paper ~evidencing a greater variation
!, In quality rather than a change in tn
customary rate during the month
, For instance, there was an increase t
8 per cent on the highest rates charg
ed on notes secured by stock exchang
collateral or by warehouse receipts
and increases to tn per cent on tn
lowest rates charged on s months col
lateral-secured paper. and IN stocl
exchange collateral-secured notes
;. There was a slight increase to 8 pc