Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-12-31
1921 RANKS AS SEVERE
PERIOD OF DEPRESSION
Is Business Grows Steadily
Worse From Middle of 1920
Until June This Year.
CONDITIONS ARA nE1"rlu NOW
ih2% EidS Fair to Scc Rcturn To Nor
nni Trade aud Industrial Activities.
WIN outi""h for Textiles. Iron AMI
steel Coed.
Ky DIR. Frank NJ. Surface.


Editor OF Survey of Current Bust
moss" Department of Commerce.
WASHINGTON. Dec. 3O.--Thc year
1921 Will bo associated in business
history with one of tho most severe
periods of depression ever Witnessed.
beginning in the middle of I92O. bust
ness conditions continued TO grow
steadily worse untu we'll past the
middle Of 1921.
The vertical drop in prices during
this period was the greatest ever re-
corded In May, 1920, Wholesale
prices. as measured by the United
states Department OF Labor. reached
AN index number of 2I2. or Il. per
cent above The prcwar level Ey Jam
uary 1921, this index had dropped to
~, ana at its low point In June and
July 1t reached las. This is "a drop OF
more than 10 per cent in twelve
months. and represents loss in the
inventory value Of goods of some
S20,oQn, OoO.UUU
Finances Arc Good.
That our financial institutions have
withstood this unprecedented shock.
without even rumor Of monetary
trouble. is triumph for our Federal
reserve system OF banking that Is
not always Sufficiently appreciated.
Since the middle of 1921 there has
been II distant turn for the better
There is little doubt but that the
bottom Of the depression has been
passed. and that from now on the
road leads upward TO better condi-
lions. II is not expected nor in fact,
desirable that the Improvement
Indications OF Il business boom in the
near future, but every sign does point
toward steady. normal Improvement.
Production in almost all lines has
shown n marked increase since July.
Inventories which in 1920 We're alb
normally large have been reduced TO
normal size. or in some instances
even below. our banking position is
especially strong. Loans have been
reduced and bank reserves increased.
all of which Is favorable To continued
business revival.
Unemployment Changes.
Unemployment. which reached it's
peak in September and threatened I"
be- Il serious condition. has shown Il
marked decrease building activity.
especially in residential and indus
trial lines. has shown a remarkable
boom III the closing months Of the
year. and promises to continue into
1922.
Perhaps the two most Important,
conditions which are holding bust
ness down To it's present level are:
% the relatively low price Of farm
products compared with other com
mo,!itics. and 90 the unstable CON
di,ion Of foreign exchange.
according TO the Department of
Agriculture. the total value of i'm
rortamt farm crops in 1919 was sl3.-
GEO Geo 0eU. with only relatively
slight reductions in In" quantities
produced. the total farm value OF the
same crops in 1921 was s5.GTc.eUO, 900.
reduction of over $4,000 900. 900. or
nearly 90 Per cont. This reduced
purchasing power OF the farmers is
serious handicap to complete bust
ncsS revival.
Perhaps no one thing wouJCa.he OF
greater Importance in restoring
proper relative values to farm
products thnn Il stabilization Of for
"ISu exchange values our export
trade - tn" balance wheel of in
"uStr!al activity. So long as
merchants can make no reasonable
guess rs 10 the future value Of for
"'%n moneys. our trade with outsl,i.
countries must suffer
TN" year 1922 bids fair to see the
return TO normal business and in
duStr!al activity. With the exception
of Il few remaining obstacles. an
fundamental conditions favor CON
Nnu"d revival. Tho outlook for
ttAt!ltS' IRON and steel. and all build
lnS material is exceptionally good
tcopyright, 1921. by United News)