The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-08-24
MONEY AND MARKETS
Money Rates


Business conditions reflect more
clearly than a month ago the improve
ment then under way, though it was
then, as now, somewhat obscured by
the usual midsummer dullness. The
increased availability of credit and
the marked declines which have taken
place in money rates in the last
six months are among the surest evi-
dences thar the betterment is founded
on improved fundamental conditions.
The money markets have now been
definitely tested by the early and
heavy movement of wheat. BY the
| time the crest of the wheat move
ment has passed, the cotton crop
will be coming on the market. Re
viewing the entire situation, and
giving due weight To the many fac
tors affecting the market, business
operations at this time should De
based on probable continuance oil
rates at levels not far from those
now prevailing. This should not De
regarded as undesirable since sta
bilization of rates at these Levels
would be in line with the re-estao-
lishment Of business activities on q
sound and permanent basis.
Although there is plenty of money
the demand for il is heavy and any
Judgment of the future course o'
money rates must take account OF
the INTERPOLATION between bank ere
dit for current producing and mer
chandizing operations and the re
quirements for funds for. more OF
less permanent financing.
While recognizing the factors foi
lower money rates. there are pow
erful forces which tend TO maintain
them. The violent declines in com
modify and security prices have
automatically tended 10 reduce banl
deposits at the same time that lonr
requirements have been falling. II
other words. while the decline il
the price level does to some eXten
release credit supplies it does no
necessarily work uniformly in thii
direction.
A further influence for mainten
|
large sums tied up in carrying hug'
stocks Of nonsalabe raw materials
in various parts of the world. Ad
d.toral money will also be required
from time to time as new crops arr
produced. Wool, hides and skins. su
gar. coffee, cotton and rubber rep
resent the more serious credit prob
lens Of this class.
Business Improvement
Conditions In July have all ten
6ed to confirm the belief that gen
uine business improvement is undo
way. Manufacturers In many line
Hre sometimes wont to express
sense Of encouragement, however
because forward orders are not a
heavy as they were during the lat,
I.eriOd of abnormal business ac
tivity. II is doubtful whether th
is justified. Good business policy re
quires caution on the part of buy
Crs. Failure 20 exercise IL contrib
uted to the difficulties from whicl
the country is beginning to re
cover. Smaller orders for early de
livery If received in sufficien
amount 10 maintain operations on
reasonable basis are at this tim
an indication Of healthy condition
Building
The fact that building operation
have persisted in fair volume In tn
face OF many adverse circumstances
Is most encouraging factor in IN
general situation. Conditions at IN
opening of the current building sea
son afforded little hope for an ac
! tive year. Many materials have nc
come down pruportonutcly with OIL
cr prices, and In those lines Il
which price reductions at poini q
shipment have been severe. frcigh
rates have prevented builders fror
realizing any great reduction IN ma
d tcrial costs. Labor continues high
, and this together with tho gencr
. uncertainty of the business outloo
; has had depressing effect.
Nevertheless. operations for IN
first seven months. as measured b
contracts awarded and permits &,
sued Indicate restricted but pei
sistont building program, we'll mali
tanned through July.
/ Although the normal seasonal d,
, cline is already being felt. the bull,