Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-04-18
BUSINESS AFFAIRS
IMPROVE IN SOUTH
BY 100 PER CENT
Eugene Meyer Jrr Sounds
Note of Real OPTIMISM
Effect of Genoa Conference
on Cotton Market Watched

ness conditions in the south and the
southwest have improved 100 per
cent over last fall, Eugene Meyer,
Jr., managing director of the war
upon his return from a survey of
20 states west of the Mississippi,
made at the request Of President
Harding.
easier money in the east is
bringing money on land mortgages
into the west for the first time in
a long time" said Mr.. Meyer.
Extraordinarily" he added, "the
outlook for crop planting is a little
late, but this is more than compen-
stated for by the prevailing mols-
ture.
Banks Report Improvement
The larger banks throughout the
west, he asserted, report conditions
as much improved, but the smaller
banks are dependent on the out
come of the years harvest. Farmers,
will be able, he added, to produce
the cheapest crop in years, as there
is a satisfactory supply of labor in
evidence, with increased efficiency
The buying power of the farmers,
Mr.. Meyer asserted, will be some
what restricted this year, as they are
buying only necessities.
Improvement in the corn belt, he
said, is reflected in the advertising
in newspapers and farm journals.
Repayments Exceed Loans
In the northwest cattle country
he said he found evidences Of in
creased buying.
Mr.. Meyer said it was too early
to indicate cotton output for the
coming year, although the remain
der Of last years crop is being
moved in an orderly manner. Some
railroad construction, he declared,
is starting up in the southwest for
the first time in five years, and a
moderate but distinct movement of
home seekers to the southwest has
BEGUN.
Mr.. Meyer announced that for the
past three weeks the war finance
corporation loans had been less than
repayments. disbursements and re-
payment for the period approximate
ing about $15, 100000.
GENOA MEET VITAL
TO COTTON MARKET
BY ESTES DOREMUS
The eyes of the cotton world,
along with all others who keep tab
on happenings here and abroad af-
fecting the economic structure OF
the world, are focused on Genoa,
where old world statesmen are striV-
ing to duplicate, in a sense, what
old and new world statesmen did
at the Washington conference on
the limitation of ornaments.
More particularly are cotton men.
vitality interested in the outcome, Of
the Genoa meeting, because Of the
effect it is certain to have on val
ues, just as the armament confer
ence proved a factor in the advance
of the price of cotton as a result of
the great steps taken towards the
cutting down of navies and world
peace.
Cotton dealers here and elsewhere
are inclined to be more bullish than
otherwise, though it is admitted that
certain factors eventually must make
themselves felt before another ad-
vance in price may be looked for.
There are some, and with good rea-
son, who insist that values just now
are higher than present conditions
justify and who point to the year
1914 as a yardstick with which to
measure a fair present price and
who at the same time admit that
cotton may go higher through the
combination of more healthful fac
tors.
One factor that stands out just
as the armament conference stood
out, is the Genoa meeting. It's sue
cess means the opening up Of Eu-
ropean trade channels and accord
ingly an outlet for much of the cot
ton now being held for better prices.
1t stands to reason that if the limi-
tation of armament was responsible
for a better sentiment in the market,
the old world effort to restore eco
nomic conditions. if successful,
would be an even more potent fac
tor in a bull movement.
Factors in Market
The strength Of the cotton market
its ability to keep around the IT.
cent LEVELS explained in various
ways and probably each has some
bearing on the situation.
In the first place, there is ire.
mendous short interest in the mar
ket. How much, no one knows,
though it probably would be safe to
say that it is not as badly over-sold
as it was over-bought at the crest
Of the long drive after the publica-
ton Of the end-September condition
figures of the government predicting
a crop under 100000 bales.
Secondly, foreign exchange, par
ticularly sterling, still maintains a
strong undertone, registering new
high marks since the end of the
World war, from week to week. Even
German marks, now at low ebh
recently recovered points in a day,
while sterling advanced to it's high
point. An optimistic view of the
Genoa conference was given as the
reason.
Thirdly, there is much uncertainty
due to weather conditions and acre
age for this seasons crop, and the
boil weevil and pink worm still are
to be reckoned with. Acreage will
have little effect in the end if these
pests destroy the plant.
Fourthly, the spot situation re-
mains hard, and the farmer is turn
ing MS ATTENTION 10 new crops as
a means Of livelihood in the future
He is slowly paying off his old debts
and making no new ones. He is not
borrowing unless it is a crying ne
cessity, and he is not spending what
he has foolishly. His watchword is
work and more work, and his de.
termination to get along with bare
necessities is reflected, not only here,
but throughout the nation in the in
crease of federal reserve bank gold
reserves.
The Big Factor
The reserve ratio of 77.9 per cent
in Atlanta and III per cent for all
federal banks reflects the general