The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1921-11-24
Continued from Page u

QecllnoQ. some rolleI Will D0 al
forded when the freight reductions
become fully effective. The figures
quoted by the United States forestry
service would seem to indicate that
practically so per cent Of the
country's farms were underbuilt and
that 46 per cent Of all lumber pur-
chased is taken by the farmers. In
| some instances where the lumber is
purchased by home builders and
farmers, 1t has been found that 20
per cent of the consumers dollar
goes for lumber, % cents for retail
ing and 81 cents for TRANSPORTATION.
The Federal Reserve System Is
making very strong showing and
its note circulation Of $2,440,900,-
900 outstanding on October 10 last
was the lowest reported since Octo-
Der A, 1913. On the same date the
banks further decreased their liabil-
tiles on Federal Reserve bank notes
outstanding to $4,000, 900, the low
est reported since December 6, 1918.
A very favorable sign has BEEN tho
large reduction Of paper held under,
ACKNOWLEDGMENT bank loans
which declined to $42,700,0 900 on
October 10 last, as compared with
1875, 10000 SO outstanding on
/ October Is, 1920. This showing &p-
parently provides basis for the pre-
diction that within three months or
so all inter-serve bank borrowings
will have been eliminated from the
system.- Since January last the
gold reserves of the system have
been enlarged by sos, 900, 900, this
gain being Offset, however, to the ex-s
tent. ofy$41,900,000 by loss duringf
the same period Of that amount in
other reserve money, such as silveEI
md legal tender notes. Since Ma4 Il
1890, the reserve banks have de-
creased loans made on government
securities from $1,090,000,000 to
$459,671 900, this remarkable de-
crease rejecting the steady transfer
Of Liberty bonds to investment chan
nels. Government securities owned |
by or pledged to the members of the |
Federal Reserve system, including
all the national banks, declined from
$2,766,011,0 900 in Many, 1920 to
1895, 448,000 on September FL,
last. There is at present scarcely
any demand for seserve bank credit
with which to carry government
bonds and the actual holdings of
government bonds by member-banks
are fully $300,000,000 below what
they were In the spring of 1920. This
movement of government bonds into
the hands of investors is very grati-]
flying and has resulted in the release
of an immense volume of credit that
is now available for commercial use. d
1t shows also that at no previous
time in hte history of this country
were the obligations of the United
States government SO generally held i
by investors as they are today. If
Possession of about 43 per cent of
the worlds known gold supply places {
on this country a heavy responsible
ity for the American reserve must :,
be for some time to come the main
reliance Of all nations in financing y
the world back to a normal basis 8
again. American investors are =
absorbing immense quantities of =
foreign bonds and a great deal more
Of this financing will be arranged for =
III lA6 LILO ACAL Low uOALAC. NCVCl l n
IN the history of this country have =
American holdings of foreign secur- ),
ties been as large as they are today. :,
The American market for foreign :.
,onds has stood the test well and an -
volume Of the best leans
lave been absorbed by actual in
'estors and are being held for in n
Ome producing purposes. Con- O.
inued firmness of Liberty Bonds has a.
zen an important factor in the re- o.
ival of investment buying, for it 81
must never be forgotten that the 81
arious Liberty Bond issues have L
cen distributed as no other bond is Ia
ues ever were distributed in the a.
United States before. Thru the 81
liberty Loan campaigns fully TO- u
10000 new investors were brought "
D the support of the bond market al
nd while thousands have restricted pl
heir purchases to government bonds "
lone, many thousand others have III
roadened their interest and have Ct
AIKEN other securities besides the pe
liberty Loan issues. This has re-
the bond market since OF
ne World War began, adding enorm-
us potential strength. IN
The country is getting into better tn
lape and slowly but surely the COM &c
Heated problems Of the readjust- an
lent period are being solved salts A.
fctorily. The undertone to business &c
good and in various lines there Tn
re gains over last year. A large su
lumber of loans are still "frozen," 1u
owever, altho there has been con- TO
derable Roadway made within the
st six weeks in liquidating long
anding Indebtedness. People are
'eling more hopeful than they did
nd there is no doubt but that the al
,untry is making sustained head -
ay in directions where year ago lily
cry great uncertainty prevailed. mt
he inflow of foreign gold continues m;
nd in Soma snctionS there has haon "a,