The Washington herald., 1922-06-05
LIQUIDATION IN
NORTHWEST AREA
PROCEEDS RAPIDLY
Country Merchants Lay
ing in Supplies in Antici-
patton of Big Crops.

ST. PAUL, June Crop condi-
tions throughout the Northwest are
all that could be asked. as we ap-
proach the more critical stage for
wheat and other cereals. Reports
from practically every quarter in
dicates that any hardness in seed
ing grain has been more than made
up by the extraordinary favorable
weather of the past month. and all
crops 60 into June with the best
prospects in years.
As a result of the excellent star,
which crops of every sort have
made, a spirit of optimism pervad -s
rural communities, in gratifying
contrast with, the attitude of pro-
ducers and town tradesmen six
months ago. One local banker. who
has just completed tour of Mime
sofa. and parts of Iowa and the Da-
kotas, asserts that he never saw
the country look better than II does
now, and he was surprised to find
such a hopeful feeling in the coun-
try districts. Although ne thought
he had kept a close watch of liquida-
tion. he was astounded at the num-
Der of banks which are entirely ou,
of debt. As often happens in times
| like the present. it is apparent that
the profess of liquidation has gone
on more rapidly than even seasoned
observers like the man quoted had
thought possible.
The bettered position of the rural
communities is of vital Importance
not only to city banks, but also to
manufacturers and jobbers. who
calculate that with farmers getting
out of debt, buying will be in larger
volume than for the PAST two years,
and they are laying their plans ac-
accordingly. Indeed, country mer-
chants are not waiting until the ac-
tual advent Of the new crop before
laying in supplies of staple COM
modities and the FLIP which this
increased purchasing has given the
market is much appreciated by
manufacturers and dealers. There
is little doubt that IL this years
crop is satisfactory. business both
in city and country will be better
this fall and winter than for two
years past.
Already in some lines distribution
is back to normal levels. In the
Passenger automobile field. for ex-
ample, the volume of sales in this
territory is astounding. The buying
began on an amazing scale at the
time of the annual motor show IN
February, and while there was a
lull for a time after that, sales be-
came very heavy again in May, and
dealers Ain all the standard makes
are now finding it difficult to make
deliveries fast enough.
Nor is this new business being
done on a credit basis. On the
contrary, a good many buyers re-.
fuse credit altogether. being quite
willing ann able to pay in cash
Moreover, 1t would appear as II the
manufacturers and distributors or
motor cars have grossly miscalcu-
lated the absorbing capacity of the
American people.
1t was the opinion OF dealers that
there would be few cars sold this
year to persons not previously own
ing them Consequently. replace
ment orders only were looked for.
and this. of course, did not augur
very active business. But 1t hap
pens that fully half of the sale,
made this spring have been to those
who never owned a car before. In
consequence, distributors and man.
ufacturers of pleasure cars are hav.
ing to revise radically their esti-
mates for the future. 1t would al
most appear as though the absorb
Ing capacity of the American peo-
pie were inexhaustible, when IL
comes to motor cars