Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-02-16

Federal 81 a.. Reserve Sc Agent; Y. Says
Depression Has Been
Felt For Two Years.

depression has been present
in the Ninth Federal Reserve district
for the past two years, Curtis II.
Mosher, assistant faderal reserve
agent, and secretary of the board of
the Federal Reserve bank at Mime.
apolfs,t told the members syof the Bis
marck Commercial club here today,
Analysing carefully all Of the ele-
ments entering into business condi-
tons today, especially. as 1T. affected
the selling Of goods, the obtaining of
credit, and the development of ey-
ports, Mr.. Mosher. in the course Of an
extended speech. reached the .conclu-
sion that individual buying power. was
the need of thelpresent hour and that
individual buying power would return
when,t the factories had demands for
goods. -, ee
For nearly two years the Ninth
Federal Reserve district has suffered
from acute business depression Its
grain products. corn, copper, lumber,
and all the other items of production
~havessuHered from radical declines in
theiemarket.s The transition from a
period Of great prosperity, and high
prices to ~a}periad of slack demand
for what we have to sell was nnex-
pectedly sudden. There has been a
decline in, prosperity which. has seH-
ously affected l:our- largest business,
which is agriculture and stock rails
ing. n which has been felt pro-
portionately all the way down the
line to the man who works for wages.
Is Not Accidental.
Prosperity or the lack of lit is not
accidental, an analysis of facts ought
to" determine what causes 1t. Or upon
the other hand. why it s rlacking. The
prime factors of prosperity are ap-
parently ca a satisfactory power. Of
absorption in the foreign markets;
(b) an adequate domestic market and
consumption Ce) unhampered inter-
change Of goods and credits at home
and abroad; and Id adequate trans
portation. If We examine these fac
tors we can probably discern why
business has been, depressed. If we
stuly them carefully we can obtain
what is probably. the only safe guide
for Judgment asAto the. future"
In the beginning of his inventory of
the present business conditions, Mr..
Mosher found first the cost Of the
n found in this one of the most GER
tain facts that Europe, would not buy
as in the past. Markets depend up
on buying power" he told his bust
ness mems audience. p Buying power
must be individual before it. can@be
collective. A vast ability to absorb
passed on with the dead" Z
Touches on Unemployment.
Turning to the lack of employment
in the United States, Mr.. Mosher con-
tinued: THE man who has no joh
cannot help the farmer ward off. fall
ing prices. He might be glad to buy
flour and wool, and the other com.
modities we are interested tin, but il
he cannot pay he cannot buy. Moth
ing vas more Encouraging than to
see q few months ago inrthe great in
dustrial sections of the S 80 pro-
nounced/a depression that longed
for the, sight rof good black smoke
pouring from a factory chimney"
conditions beginning to he exhibited
IT. the ind ustrial centers, Mr.. Moshe,
'continued: Every man who goes
back on the payroll is a distinct as.
set to the northwest. He will increase
his purchases. AS he returns to pro
ductive operations he does his, part ir
setting in motion again the machiners
which draws upon us for the things
we produce and sell, and we produce
fittings necessary fol. the living of thu
people. The condition Of the domes,
tic market depends SO obviously upor
the freedom with which the pur'
chasers are able to buy that every
eVlQence OF SnOutd De wei
comed as a boon, to the Ninth dis
trict." -
Speak for Reserve Bank.
But one bank in four is amembel
.Rof sthe Federal Reserve bank. Mr.
\ Mosher declared and that If NORTH
Dakota had affiliated it's eligible
banks, tho extension to North Dakot,
tanks would have reached $25, 900, 0Ga
instead of the $4,000, 0G0 1t is If al
eiigsblN members had needed tn,
same credits as the men1ber banks
D. Future agricultural and live stool
& prices must depend upon future mar
skAts:H he concluded. These marketi
will depend upon the buying power o
individuals. The re-opepjng OF tn,
sasterni factories With c~onscquen,
decrease Of unemployment. the re
sumption Of copper mining with ali o
its Indirect effects Upon timber ant
4 coal production and transportation
and the somewhat more hopeful ton,
OF the business world, are all encour
aging factors and 1ead tt the belle
that the buying power upon which
prosperity rests win gradually re
lassert' itself.
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