The Columbus dispatch. (Columbus, Miss.) 19??-1922, 1922-01-04

The year 1921 was difficult and abnormal
one for nearly every class of business, and
as banks are really the Concentrated es-
sence" of the business and economic life Of
the country, they had a corresponding num-
Der of problems to meet
The business reaction which started in the
latter part of 1920 continued and became
more acute during the first half Of 1921, and
the reduced purchasing power of the coun-
try together with the steady dehation oil
prices caused much embarrassment to many
large and heretofore strong and prosperous
business houses
AS consequence there was much slow
ing up in trade and industry and interest
rates gradually declined. Moreover on the
basis of the lower prices it will take less
money to finance the same volume of bust
ness and it seems safe to predict that we
shall have an era of cheaper money in 1922
This, in turn, should lead to a revival oil
trade and industry and a more wholesome
condition of our whole economic life
So far as our immediate section is con-
cerned, we can safely saythat conditions have
very much improved. New Orleans still
leads all southern cities in the amount Of
business done as reflected by retail sales and
other indicators.
The agricultural situation was most COM
pick one in the South during the past year.
The cotton crop was the shortest which has
been produced in this country in twenty
years, but fortunately the price increased suf-
ficiently, to offset to some extent at least, the
shortage of the crop. But while this in
crease in price did not really help to make the
cotton planter prosperous, it did help trem-
nN1H HnIIu uIxy 10
situation in the South, and enabled many of
the southern banks to get themselves into
more liquid shape than they had been for
the past year OF more Mos of these banKJ
had, by force of circumstances, been COM
PEELED to carry over substantial loans, based
on cotton produced in 1919 and 1920, which,
for long period of time had been entirely
unstable until this rise in the price and i'm
provement in the demand came along, and
helped these banks to liquidate many of
their frozen loans. As a result the entire
credit situation in the South took on a more
cheerful aspect and when the crop-moving
season came along the country banks found
little difficulty in taking care of the demands
made upon them to finance the harvest
The corn crop was quite large, but unfor-
tunately the price is very low On the other
hand, the South is not suffering as much on
account of the low price Of this product. as
are the midde-western states, because in our
section corn is not really looked upon as
money crop but is raised largely for home
consumption. Most of the farmers have their
cribs filled with corn for the coming season
which means that their cash requirements
for crop making purposes will be correspond
ingly reduced.
The most encouraging thing about the
agricultural situation in the South is the
fact that great economy was practiced in all
Of the farming districts during 1921. and the
lessons of the last year or two induced farm
ers to pay more heed to the advice of the
bankers who have long been preaching the
doctrine of greater diversifcation of their
:rops.
In answering the question as to what we
nay expect in the way of business develop
nents in 1922, we dare not express any very Il
positive views. 1t does not appear to us
hat there is cause for any great amount Of
ptimlsm, but there seems to be much reason