Evening star., 1921-12-01
RESERVE BOARD IS
HOPEFUL OF future
Sees Improvement in Retail
and Wholesale Business.
Local Stocks Are Slow.

Inc reuefdl reserve board, IN It's
digest of conditions. finds that prog
ress toward normal conditions
achieved during November has been
continuous, with cotton and woolen tex
tiles in some Of the principal districts
almost at normal.
about SO tper cent of capacity, are
In much better condition than a few
months ago. Unemployment has de-
creased slightly. Banking conditions
are reported slightly improved"
This latter paragraph must refer
to southern and and agricultural dis
tricts. where much frozen" credit
is still delaying the measure of i'm
proyement noted elsewhere.
Reduction in the price of cereals
as high level as had been expected
during October have proven a seri-
Gus handicap to farming interests
Results of this relatively low return
for output have been a reduction in
the demand from farming communi-
and tendency to check the liquida-
ton of loans at banks.
Nevertheless. retail business con-
tlnues TO improve. taking the country
as whole, and has been materially
helped by the Improvement that has
taken place in employment condi-
tions.
Improvement is also observable in
the wholesale trade. Sales compare
faVorably with those of a year ago
Prices continue to maintain a stable
position.
THE general situation in trade and
industry is Enthusiastically more health
full"
Liquidation Has Gone Far.
The National City Bank says:
Liquidation has gone far with the
eastern reserve banks. because they
serve the industrial and trading com
munities, which have been running
light and working down stocks Of
goods and materials. The western re-
serve banks have liquidated to a much
less degree. on account of the great
tall or farm products and also be-
cause indebtedness in the west was
heavier in proportion to current as
sets. A manufacturing concern usu-
ally has more working capital in pro-
portion to the volume of its business
than a farmer
'"The active market for investment
securities aids in the liquidation of
the eastern banks. as houses with
strong credit are able to put out is
sues of bonds or notes as a means .of
paying off bank loans. Instances of
this kind are of daily occurrence. and
are very helpful in clearing up the
situation. All such developments are
part OF the process of getting back
10 Tree and liquid banking conditions.
7 The activities of the War Finance
Corporation are giving a considerable
degree of relief to banks in the agri-
cultural sections uring funds made
available by appropriation from the
United States Treasury. OF course, the
funds must be replaced in the Treas
h0rrnWinD in ha lic
ket. which amounts to a funding proc
ess similar to that described above,
except that II is accomplished by the
aid of governmental agency instead
Of by the direct market borrowing of
the parties interested"
Local Securities,
Again there was very little doing in
the local security market.
There was little demand for stocks.
less for bonds and not the slightest
pressure to sell anything.
Capital Traction firm at 80; Railway
common steady; Potomac refunding as,
lO4.
Lanston was a little firmer, with Il
bid. 13 asked.
1t wasn't a market worthy of much
comment.
Bankers Meet Tonight.
This evening at s o'clock the Dis
at the Cosmos Club assembly rooms.
entrance on Madison place. Business
of Importance will come before the
assembly.
Victory Notes Retired.
During the fiscal year 1921, $751;
S44.576 was expended in purchasing
victory notes. while accrued interest
to the amount Of s3,497.714 was paid
off.
Banks are said to be buyers of lib
erty bonds and their purchases have
been largely responsible for the sharp
advances.