New-York tribune., 1921-01-28
psying of Character In
dicating Depletion of
Stocks Absorption of
Most of War Imitation

sxnroved business conditions in the
,s.xslanS and st. Louis Federal Re-
~. districts are reported in the
~.rthly reviews just issued by the
S.asral Reserve banks in those cities.
sRsports reaching us this month, !"
.,x. the Cleveland bank. "are almost
unit in declaring that signs point
:. an Improvement in the business
,;,,.t;on. Some Of the more optimistic
.,ofass to see distinct revival in the
'.m.diate future. while others, some
hat less enthusiastic, agree that the
,..Ieok is much more hopeful"
The St Louis bank draws attention
~ the reversed psychology in business,
.h.ssd on the opening up Of scattered
ssy;ng not particularly noteworthy in
,.lume, but of character indicating
,.st stocks of merchandise have reached
noiut where they must be replenished
,,d that q good part OF the war In
,,t;on has been absorbed by he level
II prices
The narrow gauge upon which busi-
.,ss is progressing is illustrated in the
1rsveland banks report on lake traffic,
ssrticularly in ore and grain. Little
/ = the way of forward chartering of
vsssels for early shipments of ore and
rain from producing centers has taken
slsee and the bank predicts late open
.nr Of lake traffic this year.
sThe disposition of the farmers to
,o,d their 1920 crops still obtains y
avs the Cleveland Bank, while the
ssndency OF prices is toward lower
srsls. A relatively low price for farm
.rops and livestock has brought about
- unusual situation in the farming
.s,t;on. in that farmers are borrowing &
rare money to tide them over - q
rtuation that has not existed for many
years."
ures reported in the St. Louis district.
1spartment stores reporting to the
FEDERAL Reserve Bank in that district
ulaced their December sales in most
fasss below those of December, 1919,
the average running about 1.61 per
cent under 1919 figures. This was the
ouIy month in 1920 in which net sales
fsu below the spending month
in 1919.
Retail figures for the Cleveland dis
,rict show an increase in net sales in
December for the district of 14.7 per
rent over December, 1919; Pittsburgh
registering a gain of 23.7 per cent;
Cleveland, 40 per cent, and other cities
an average of lis per cent. For the
SIX month period ending December 81
he district showed a gain in net re-
tail sales in 1920 over 1919 of 20.6
per cent.
Improvement in both districts is
marked in the volume of trading IN
textiles, clothing, shoes and furniture
In both there is a disposition to ex-
psct further price reductions in iron
steel and products made of them. with
.he result that activity in these com.
modities is at low ebb. In the pro
duction of shoes the plants in the st
Louis district are running about 81
ne. cent of capacity, contrasted with
az estimate of 30 per cent capacity
ior the entire country.
Although gradual improvement in
the financial situation in the st. Louis
district is observed, it comes chiefly
tron the northern part Of the section
In the South the holding of cotton
ard tobacco by the raisers has tied ur
bank funds, but a greater willingness
Ia convert their products into cash
land l:ouidate their debts is discern
|;bIs among the raisers of grain and
livestock in the northern part of the
district