Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-12-31
FEDERAL RESERVE
BUSINESS REVIEW
VERY OPTIMISTIC
Bank CIearings in Sixth Dis
trict Increase, Mills Oper-
ate Longer Hours and Un-
employment Decreases

employment D6CI eases
Preliminary to detailed report of
business, industrial and agricultural
conditions in the Sixth federal re-
serve district, which includes sew
eral distinctly cheering phases, The
Monthly Business Review, published
by the Federal Reserve bank, Of At
lanta, prints a general summary for
the United States, showing "the con-
tinued upward movement of bust
ness" and the indication of "a gen.
eral restoration of normal condi-
tons"
The local district conditions in
clude hopeful details such as an in
crease in the bank clearins@ Of fiji
teen important cities in the district:
an improvement in the employment
situation, particularly in Atlanta; an
increase in the production by cot
ton mills; and a corresponding in
crease in their employment; and the
operation at from 80 to 100 per cent
capacity of cottonseed oil mills in
the district.
The general summary for the
United States is as follows:
Continued Improvement
Comparison of the year-end re-
ports with those for the correspond
ing month in 1920 demonstrates the
continued upward movement O Of
business and indicates general resto-
ration of normal conditions. This is
in spite of the fact that tho month
of December, which is normally a
period of comparative slowing down
or transition, indicates, as is usually
the case, some recession from the
higher levels of preceding autumn
activity of business. Chief impor-
lance is usually assigned at the
close of the year to the holiday
trade, emphasis being rather on the
side of distribution than on the side
of production. This intensified de-
mand serves to bring into actual use
the goods produced in the earlier
industrial period. The holiday trade
is thus a test of the soundness Of
the preceding business activity.
Reports from the various federal
reserve districts covering over half
the month show that this years de-
| r1and in the eastern districts has
registered an increase running as
high as 10 per cent over that OF
1920, while in other districts the
situation is pronounced satisfactory.
Manufacturing lineG, although slow.
ed down because of lessened sea-
sonal demand, generally report Il
fairly satisfactory condition, al
n01y Of RI nyS6n
still testifies to the uncertainty with
which the prospects of the coming
months are regarded by many firms.
Freight rates continue as a disturb
ing factor, due to the belief that re.
auctions already announced as af-
fecting some commodities may be
much more widely extended in the
near future.
"The relatively lower prices which
have been realized both for cereals
and for cotton. have proved discour-
aging to the trade in the agricuif
tural districts, and have also result
ed in retardisg the process of lfqui-
dating frozen loans representing
past advances of credit. Wholesale
prices are showing increased stabili-
ty. Unemployment conditions. on the
whole, are but little changed from
those reported a month ago.
ga decided Improvement in Euro
pean exchanges has tended to some
extent to help the foreign trade sit
uation during the month of Deem
Der, but the extreme caution in the
extension of bank credit which was
previously so notable phase Of our
foreign trade still continues. Expert
figures indicate a still further de-
cline of activity in staples, while
imports show an advance. Disturbed
conditions in various countries of
Europe still render a maintenance
of business relations with them IN
certain and hazardous. Rates of
interest which had already made a
notable decline during the autumn
have tended, on the whole, still fur
Their downward, partly owing to the
fact that there was no foreign out
let for our capital"
Sixth District Conditions
The sectional report, for the Sixth
district, notes improved activity in
various lines:
Building activity has continued
q. some points in the district in I'M
usual NOluul6 LUZ ILLS SSdSOll VI llIC
year, and some of the cities from
which building statistics have been
received show substantial increases
over the value of permits is
sued in November for the erection |
of 541 residences, compared with 169 |
for November q year ago in these |
same cities. The same relation .'oes |
not exist with regard to the total
nF RI
with last year, because of the de-
cline to cost of construction. This
continued activity in building has
resulted in the lumber production |
holding up well, although in No
shipments and weather conditions
at some points have begun to inter-
fere with logging operations.
Manufacturing in the district |
showed further improvement, though !
slight, in November. Notwithstand-
ing the uncertainty prevailing in the
cotton market and the somewhat
lower volume of orders received by
the mills, their production in No
vember was larger than during o.
tober. Other lines of manufacturing
also report some increased produc-
ton.
1.-THE labor situation has i'm
proved, on the whole, over that of
two or three months ago. The NUM-
Der of unemployed is slowly decreas-
ing. With the approach of cold
weather, however, it is believed the
seriousness of unemployment is be-
ing more keenly recognized than
has been the case earlier in the fall.
Campaigns are being waged by va
,,in civic n1,on n iza tinnC to ralieNn