Arizona republican., 1921-05-08
Business in Healthy Revival
 Says Federal Reserve Agent

~r~r
 nat there has been van,
 Sustment of business conditios. s.,-s, slout the Twelfth federal re- oistrtct and the countrv ano
 ene signs of the re-esta blisbnont ol healthy conditions of agricuItnra ssnoustry and commerce are atifv' r.. is me declaration of John Per f.as man of the board of the a;ss-, reserve bank of the Twelfth cor, sIo federal reserve agent in So,hinun'cation to Charles W tai, lielo. state auditor Of Arizona sn, ntehdent of pas,ks.
 HIS letter is as follows:
 Federal Reserve Bank
 or San Francisco
 ra May 2, 1921. Dear MT. Fairfield:
 ,ecelpt is acknowledged of your le.eer or April 2s. mentioning the re- ss-a, oahk suspension in Arizona and oulhning the gratifying progress which has been made in reopening closed.
 ne business readjustment which mas been experienced in Arizona and tne other states of the Twelfth fed erai reserve district during the last several months is not confined to any one section of this district or of the
 ~S~a e'tdtCS- IL IS WOrlQ-W W1Qe, ana us causes are fundamentally the same in all countries. Following a lew months of hesitation after the armlsttce, the return to normal peace-time undertakings in many in- ocstries resulted in an activity which soon became a speculative boom. in the course of which prices of commo- ultles to the consumer were advanced sharply and continually. Increased O md co1. x-so
 cured in most lines during the war years and in 1919 gave the illusion of greater real wealth to the average consumer. and his free and often reckless spending contributed to fur ther enhancement of prices. This steady increase in the prices of all articles first checked and then al- most entirely cut off public buying, and the spring of 1920 witnessed the beginning of the so-called buyers strike. Evidence of the turn first ap- peared in Japan. where, following a period of feverish speculation, a col lapse of the silk market occurred. From Japan the reaction spread throughout, the world and no coun- try has escaped the effects of it. In many of them, notably in the United Kingdom, Germany, Japan and China, the process has been more distressing than in the United States.
 As the year 1920 closed there were many indications that business gener- ally was beginning to adjust itself to new conditions and was prepared to proceed on saner basis. The dan ger of a financial panic, such as hith- erto in this country, particularly in 1878. 1893 and 1907, always accom- panied a period of rapid business re- adjustment like the present, definite iy passed with the turn of the year, and the banking system is growing progressively stronger. Certain of the major industries of this country which were the first to feel the effects of the readjustment have shown a steady improvement since the first of the year. Among these are the cotton spinning and woolen goods manufacturing industries of New England, the silk industry of New Jersey and Pennsylvania, and the au- tomobile and tire industries of the Middle West. Farmers throughout the country have seeded large areas to the basic crops (except in the South. where a reduction of 25 to 35 : per cent in the cotton acreage is re-