The Washington herald., 1921-01-20
CHICACO'S CREDIT
CONDITIONS EASING
Demand for Commercial Pa
per Strong From Outly-
ing Banks.
Especial to Business Section Of The wash
ington HerAld.)

AbpeSlhA 70 buslhess otCLlSu oA 4hc WASn-
ington HerAld.)
CHICAGO, Jan. l9.-Easing cred
its conditions are reflected in the
weekly statement of the Federal
Reserve Bank. Loans to member
banks decreased $20, 0,645. 900. chiefly
commercial and agricultural. and
the total bills held by the bank, in
cluding those purchased in the
open market. are $43S.495.0O0. COM
pared with s5O1, 500. 900 at the close
of 1920 and s5O2,272,O on Decem-
ber 90.
The week brought a further gain
of S6,915,0OO in cash reserves. Fed
eral Reserve note circulation con-
tracted 81 900, making a total
decrease of s42.2lO.OO0 since Decem-
ber %. The reserve ratio is the
highest in months, 451, compared
with 43.5 the week previous and 1913
on December 23. Member banks in
creased their reserve credits $2,-
| 26l 900.
! Demand for commercial paper is
strong from outlying and country
banks. The rate continues at s per
cent. Bankers promise no lowering
/ of rates here until rediscounts at
the Federal institution have been
largely cut down. Brokers report
/ ~ the ruling rate on collateral
loans. but expect easier conditions.
Individual banks continue to ex-
perience heavy demand for accom-
mediation, but there is some reduc-
tion in interior banking rediscounts.
Collections Fairly Satisfactory.
Collections continue to slow
down, but are fairly satisfactory to
merchants and manufacturers, ex-
Cept those whose relations with
agriculture have been particularly
close.
/ A week of activity was expert
enced by investment houses. New
offerings were quickly oversub-
sCribed and seasoned issues were
well and widely taken. The clos
ing session of the Stock Exchange
was dull and featureless. Strength
of public utilities was a feature OF
the curb market all week.
John J. Mitchell. back from the
East, says: "As soon as peace is
declared our trade will spring up.
Germany needs our products and
will be in our markets for consid-
cradle financing. but final fixing by
the allies of reparstions is neces-
sary. Renewal of our German trade
would do much to revive our indus
tries. Fasteners are more cheerful
| regarding domestic affairs. Year
end settlements passed with much
less trouble than was expected.
Inventorying will evolve a new
basis of prices. There is some casing
of money rates, mostly seasonal,
and tho general impression is there
will be more, but no easy money
| for months. because OF continued
demand. The country's banking
situation is improving, farmers and
business men paying off loans to a
greater extent than several months
ago, but real thrift has scarcely
started. Expensive dressing and
high living are everywhere conspic-
uous. The Century train, operated
in several sections both ways, is
patronized mainly by young folks,
whose business does not appear
urgent" '.....- =, -
Gerhard NJ. Dahl. vice president of
the Chase National Bank, New York.
tells the Illinois Bankers Assoeia-
tion that Europe's problems are as
acute as at the end of the war, and
if the BOlshevist government in
Russia docs not fall before WIN
ter is over the Bolshevists will
launch another attack. next spring
and nobody can forecast the result