The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-08-04
MONTHLYCROP AND
BUSINESS REVIEW
REPORTS NINTH FEDERAL
RESERVE DISTRICT
GRAIN OUTLOOK GOOD
Rapid Movemen: Farm Products
To Market In Spite of
Falling Prices.
Associated Press pasn.seh.l

H. Rich, federal reserve agent for
the ninth district issues today ais
monthly letter IN tho crop and bust
ness conditions in this district, a
sumTcary of thc same following:
In this district the month ia char
acterizeI by = continuation OF Tie
rapid movement OF Farm products to
market in spite OF falling prices.
Manufacturing of all kinds. a. well
as new building operations project
ed, declined. Trade, labor cccN !.
tons, and volume OF business reE
main practically unchanged. Credit
facilities are ample for crop needs
even though a larger crop Is In
prospect. The outlook for coal this
winter has reached q serious stage.
Crop conditions and prospective
yields throughout this district on
we'll farmed lands indicate. at the
present time, that a much better re-
suit will be obtained than last year.
The causes Of damage ir differeu!
sections have varied. the greatest
being lack of rainfall, with damage
by hail second, followed ty grass
hoppers and rust. The ability VI. the
individual farmer is showing up in
the condition and prospective yield,
even more markedly than usual th!s
year, crops on well prepared land
being able in many sections to with
stand the long dry spells, while the
neigh boring fields, which were stub.
bled in, have dried UP. Similarly the
fall plowed lands, in the midst OF the
grasshopper areas, have been COM
paratively free Of the pest.
IF q nrn6nrfQ
continued at rapid rate. Receipts
of all grains, EXCEPT barley and fax
were above normal. Receipts of
livestock were abnormally large ex-
cept in the case of sheep. The prices
of grain and livestock declined, the
decline being greatest In the case OF
grains. The movement OF feeders
to the farms has substantially i'm
proved. f..
Volume Of Buying
The volume of buying, both at retail
and at Wholesale, was about the
same as in the preceding month
but was much greater in the aggre-
gate than year ago. At retail,
there were declines in general mer-
chandise but an increase for lumber.
At wholesale there were increases In
dry goods, groceries, and hardware,
but declines in shoes and farm i'm
Elements.
Stocks OF merchandise and mater
ials remained practically the same
during SthekH1cnth except for q no.
ticeable decline in grains, other
than barley and max. When stocks
are compared with a year ago, IT
appears that there has been some
reduction for retailers and manufac-
I,,x, ,Iar nd q SidoTa
increase for the grains, owing to the
present large stocks OF corn ana
oats.
Manufacturing declined during the
month in all lines, the decline being
greatest in flour production at Min
neapolis which was seventeen per
cent below the ten year normal. As
compared with a year ago, manu-
featuring was at a higher level, the
gain being particularly noticeable IN
copper and lumber although hnseed
production was less. .sa
=. Building Operations
GO Building operations projected in
the important cities in this district
declined sharply in June as com
pared with May, both in number and
in valuation of permits granted. but
were larger than a year ago. An i'm :
provement in the housing situation
in Minneapolis Is indicated by what
is equivalent to doubling Of rental
advertisements over a year ago.
Employment conditions continue
favorable, especially for skl',o, =
Dor. Farm demand has increased.
The volume of general business.
measured by bank debts, indicates
a slight increase in June, but much
IN uyf1
should take place during this time
of the year However, the volume Is
practically the same as a year ago.
This unfavorable showing in the
general volume of business is to be
accounted for partly by the cool
summer weather which has affected
merchandising. The effect of this
unsatisfactory volume of business
on profits is again reflected in the
number of business failures which
were a great as. in the preceding
month and more than double those
of a year ago.
The Coal Situation
The coal situation has reached a
serious condition which is self evil
dent from the facts regarding re-
ceipts and stocks in the Northwest.
Coal receipts at Duluth Superior for
the lake shipping season are about
one percent for anthracite and
about seven per cent>for bituminous
as compared with what was receiv-
ed a year ago. Stocks on the docks
on July l are about two ffths and
stocks in, the Twin Cities about one
fifth of year ago. Lumber COM
panies operating about 400 retail
yards in this district have reported
to us that their coal stocks are less
than one half for anthracite and
about one third for bituminous as
compared with a year ago.. The most
drastic remedy that it is possible to
apply to this situation at his date
will no enable us to avoid the ne
cessity of bringing in large guam
tity of coal by rail to meet the
winters needs. ~
The financial situation In the North
west during June is characterized by
increased ease of bank credit in the
twin cities, orderly progress or I'm
ancing the crop in the rural dis
tricts, increased absorption of Unit
ed States securities for investment
purposes by both twin. city and coun-
try bank, and continued slackness In
the demand for accommodationfr from
this Federal Reserve bank. Market
interest rates are practically un-
changed although there has been a
softening tendency. The rediscount