The Mankato free press., 1922-06-30
MARKETING TREND
0FFARM PRODUCTS
FEATURE JUNE BUSINESS
REVIEW OF DISTRICT
CROP OPPROSPECTSGOOD
Volumn of Buying, Both At Re,
tail and Wholesale Shows
Increase.
rAssociated Press Dispatch J

Minneapolis, June 2S.-Mr. John
= H. Rich of Minneapolis, chairman
and Federal Reserve agent for this
district, in his monthly business
review of his district for May says:
In this district the month is char
acterized by a movement OF farm
products to market greater than
normal and at rising prices, while
manufacturing and building opera
tions have increased giving prac-
ucaIly full employment to labor.
This has been reflected in a greater
use of credit facilities, which re-
main amply sufficient to finance this
activity.
Crop prospects appear very good
at the present time, but it is i'm
portant to remember that fully six
or more additional weeks are re,
quired to complete the most critical
part of the growing season In much
of this territory; and during this
and wheat sprouted in the shock
may all have an effect on the yield.
In fact, the present crop is far
from completion and subject to
many contingencies. 1t may, there
fore, be questioned whether any one
is justified in executing now bud
get of expense, based on the as
largest increases shown in corn,
oats and rye. Cash prices for these
products increased generally in
May, with the greatest gains in
grains and moderate gains in all
sumption of a realized crop. The
present condition of the crop indi-
Gates that, with unchanged condi-
tions. there will be 73 per cent more
rye, 80 per cent more oats. q per
cent more barley and 25 per cent
more spring wheat produced in the
Northwest than last year. Excel
len: pasturage but decreased fax
acreage are also reported.
The Marketing Movement.
The marketing movement OF farm
products was noteworthy in May.
Hogs and calves moved to market
much more rapidly than normal for
this season. but the sheep move
abnormally large in May, with the
live stock except hogs and lambs.
City consumers experienced a slight
increase in the prices of articles in
cIuded in a typical family budget.
The volume of buying, both at re-
tail and at wholesale, increased in
May Retail lumber sales increased
about one third and department
store sales were about the same as
in the preceding month. Whole
sale sales of farm implements, dry
goods, hardw are and groceries in
creased, while sales of shoes de-
Stocks OF merchandise and ma
terials as compared with a year
ago were greater In the case OF
grains and department stores, but
less for iumberf AS compared with
the preceding month, however,
stocks of both grain and lumber
declined, while department stores
reported a slight increase.
Manufacturing during the month
improved generally, with particu-
larly satisfying gains in the copper
and lumber industries. The gains
were very marked as compared
copper.
Building Operations.
Building operations projected in
important cities increased in May,
according to the number and value
OF permits granted, although nor
mally at this season OF the year
there should be slight decline.
The valuations are much greater
than a year ago, and there is evil
dence that the need for housing is
rapidly being met, as there has been
a noticeable improvement in the
rental situation as reelected by ad-
vertisements.
Employment conditions have un-
dergone a noticeable change during
the last 80 days, because all labor
now wanting work is able to find it
and employers for the first time in
two years are not able quickly to
find needed help.
The Improvement which took
place in the volume of general bust
ness, was reflected in the volume
of bank debts in important cities.
the increase being 6 per cent for
the month, although in the same
month during the last two years
there has been seasonal decline.
This improvement in volume has
given business firms a better turn
over, and doubtless somewhat bet
ter profits. The figures for bust
ness failures substantiate this con-
clusion, as they declined during the
month, although remaining at high
er levels than a year ago. The
openine of lake traffic has not had
an appreciable effect this year upon
the volume of business, as the
movement of iron ore eastward has
been considerably reduced, owing
partly to expected reductions in
rates, while the westward move
ment of coal has been negligible.
The coal situation is a matter OF
greater concern in the East than
in the Northwest at the present
time Anthracite receipe< at Duluth
are more than one quarter million
tons less than last year at the same
date. The non union mine produc-
rion of bituminous coal may increase
sufficiently to meet its demand.
But, unless substantial improve
ment is made in the anthracite ship
ments, the opening of winter will
develop a crisis which will require
rail shipments at much greater
cost than that Of lake transporta-
ton.
The commercial banking situa5
ton in the Northwest apparently
has returned to the level prevailing
in the fall of 1919, if conclusions
may be drawn from current inter-
est rates and the amount Of bank
ers' borrowings from this Federal
Reserve Bank. This does not take
account, however, of the new loans
made in this district by the War
FINANCE Corporation and the Farm
Land Banks, nor of the seed loans
made by the federal government
In the fall OF 1919. interest rates
had been rising whereas now they
have been falling. The condition OF
important banks in the larger cities
of this district reflect better bust