The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1922-02-23
PROSPE RITY To
STAY LONG TIME
Congress Told Business Revival
in u. S. Is Near.
AT POINT OF UPWARD SWING
Federal Reserve Board Reports on
General Conditions Throughout
the Country-Loans Reduced
and Gold Reserve Increased.

ana GOLD Reserve Increased.
Washington, Feb. 81. ~ Business
throughout the country, progressing
through well-defned circles, is nearing
the point of the upward swing of the
economic pendulum, according TO the
annual report of the federal reserve
board transmitted to congress.
There are those" the report said,
"who believe that the beginning of re-
vival is not far distant When it does
definitely set in it will be followed in
due course by new era of prosperity"
Business in one of its "lOng swings"
from prosperity, the report said, has
followed its usual rotation, which it de
Scribed as business activity and in
creased production; excessive eNpan-
sion and speculation, followed hitherto
by panic and forced liquidution;
long period Of slow liquidation. bust
ness depression and stagnatIon, and
then revival.
Things TO Remember.
In the light of recent experience"
the report warned, 1--WE should remem-
Der, when we again enter into n period
Of full prosperity, that a reaction will
follow sooner or later, and if the flow
of the incoming tide can be controlled
so that the crest may not be reached
too rapidly, nor rise too high. the sub
sequent reaction will be less severe
and the next period OF industrial and
commercial activity and general pros
perity will be marked by saner meth
DDS, greater achievements along CON
structiye lines, and by a longer dura-
ton than any which we have had be-
fore"
The board confined its report to an
account of the operations of the or
ganization for the year 1921, without
offering any suggestions for legisla-
ton affecting the board in the federal
reserve system.
The earning assets Of all federal
reserve banks, the report said. amount
ed on Dec. 2S, 1921 to $1535, S51, 900,
compared with $3,2G3,O2IOOO ON Dec.
81, 1920 a reduction Of S1,727, 10000,
or 53 per cent and reduction of ST.
SS6,l25OOO, or 50 per cent, from the
high point reached on oct. ID, 1920.
Increase in Gold Reserve.
This rodrction IN Ioons tho ronort
explained, was accompanied by a
sfnadv increase IN cold reserve and an
almost continuous reduction in federal
reserve note circulation, the loan re
oucll0h continuing aeSpile substantial
aecllhe IN discount rates
cross earnings OF the iederaI re-
SERVE p"IINs ioT i'-I' 'le report con
uhu'u' amounted 10 Hl--'No' wv, com
pared WIN Hiol'-'"ooo III I3-o the
I'IiIl'E OH ~ earnings oeIl'- c"'ll'uu'u
III llle Nolulne OF r'uiScouills ana re-
uHeu"IlS III I'"IS'"'Hl ral'N'
Me'hocT p"''N p"''""'''-S' "''"I"II'E
10 lhe report showed continuous
d'cIlhe from H-,on ','7"o"" aJ Inc eIlu
OF loZo TO ABOUT @I'I1t,""0'"'o at the
ehd OF I9-I' que T." Il reduction % over
H'ooooV'ooo III 'ile N"'U'lo 'I Ieu'r"
reserve notes III clr'u'alI"h' c"uS'd
by lower price .'N''S' ana ny 'no ue'
imports OF GoIo amounting 10 H"o"-
oooooo' prae''c",'y an Oh "'lcn Iouhu
lis way INTO leueraI reserve banks
AS a irahcI'iSe TAX lhe ied'raI re-
serve banks pald INTO the treasury
S00,0'4OVo Tor lhe year lo-l'