Paragould soliphone. (Paragould, Ark.) 1918-1950, 1922-01-06
BUSINESS OF
THE COUNTRY
HAS IMPROVED
Reserve Board Reports
Gains for Last Month
Over December, 1920
Farm Products Cheap. :.

Washington, Jan. 3.--Continued
upward movement of business, and
gradual restoration of normal con-
ditions, are indicated in the COM
parison of reports of last month with
those of the corresponding month of
1920, according to the December re-
view of the economic situation is
sued last night by the Federal Re-
serve Board.
Net improvement was found by
the board despite recession of bust
ness activity in December, compared
with the same month last year.
1.-THE holiday trade" the board
said, lis a test of the soundness OF
preceding business activity. Reports
from the various Federal Reserve
districts, covering over half Of the
month, show that this years de-
mand in the eastern districts has
registered an increase running as
high as 10 per cent over that Of
1920, while in other districts the
situation is pronounced satisfactory.
Manufacturing conditions, how
ever, the board reported as far
from uniform There was decrease
OF activity in the iron and steel
industry, while textiles showed lit
tie change from previous months
and uncertainty exists as to the
future Of the clothing industry, due
to labor disturbances and the con-
tinued demand of consumers for
lower prices.
Rate Cuts Expected.
Freight rates." the board said,
continue as a disturbing factor,
due to the belief that reductions al
ready announced affecting some COM
modities may be much more widely
extended in the near future"
Relatively lower prices for cereals
and cotton, the board said, have
discouraged trade in the agricultural
districts, and also have resulted in
retarding the process of liquidatingl
frozen loans. Hardware and related
lines also are said to be in an I'M
satisfactory condition, but whole-
sale prices "are showing increased
stability" Employment conditions
were reported by the board as but
little changed.
"a decided improvement in Eu-
ropean exchanges" the board said, !
has tended to some extent to help
the foreign trade situation during
December, but extreme caution in
the extension of bank credits, which |
was SO notable a phase of
our foreign trade, still continues.
Expert figures indicate a still fur
Their decline of activity in staples, !
while imports show an advance.
Disturbed conditions in various |
countries of Europe still render a !
of business relations
with them uncertain and hazardous. |
Rates of interest, which already had /!
made notable decline during the
autumn, have tended on the whole
still further downward, partly ow
ing to the fact that there was no
foreign outlet for our capital"
Reviewing the year in the ship
ping industry the board said the
industry has been through most |
difficult period, in which many of
the weaker operators have been
forced out of business. and in which,
as result of greatly reduced freight |
rates, smaller available oargoes and !
continued high costs OF operations,
very few companies have been able
to make satisfactory showing.
This condition has been worldwide
although American companies have
felt in special degree the handicap
Of higher scale of wages than their
foreign competitors have been oblig-
ed to pay"