Evening star., 1922-10-03
BY j. c. ROYLE.

Special Dispatch to The Star.
NEW YORK, October 3.-Bankers
from widely separated sections OF the
country, here for the convention OF
the American Bankers Association,
reported today that the rapidity OF de-
posit account turnover and the VOL
ume of demand account money "hlch
was going into industrial expansion
were marked features of the business
sidtuation of the country These busi-
ness factors. they said, were strong
indications of slow but steady in
crease in general price levels.
Turnover may not mean much TO a
man on his back" one western banker
said today. But it means lot to To-,
business which is on its feet. The
rapirity of individual deposit turn
over, in my section,sis explained by
the increasing activity OF goods, the
growing size and volume OF CONNER
cial transactions and the upward tend
ency of prices"
Look for Continued Growth.
The consensus of opinion expressed
by the bankers was that production
throughout the United States would
continue to expand throughout the re-
mainder of the year. The higher
trend of wages and of fuel and mate
rial costs, they indicated, was plainly
forecast and as result rising prices
also would obtain.
The slow advance of prices can be
expected to stimulate rather than
check buying in many sections OF the
country. provided the buyers are con-
WINGED the advances are necessary ana
justified by economic conditions. In
support of this view, the bankers
pointed to the tremendous tonnage OF
rails bought by railroads since the
advance of IS a ton went into erect.
Exorbitant price increases. however
will undergo an immediate and EN-
cient check from the opposition or the
buying public to such advances, and
by restriction OF undue credit faclli-
ties.
Ample Credit Facilities.
There are ample credit facilities to
care for the new necessities which
industrial improvement will entail,
the bankers asserted. Interest rates
give no immediate prospect of hard
ennS.
But should the advance in prices
assume alarming proportions. the eX-
banks would call forth stiffer interest
charges from the federal reserve
banks. This. according to the finan-
cierS, would put an effective brake on
prices.
Reports from business men and pro-
ducers in various sections received
| within the last twenty-four hours
bear out the contentious of the bank
erS. Detroit reported today that lum-
ber prices We're rising and that the
Wells Lumber Company would begin
| at once one of the largest logging
in
Michigan, in the Iron Mountain region.
cutting nearly 40,000,000 feet of TIM
| Der this fall and winter.
| From East ST. Louis comes the re-
| port that midwest farmers have mar
keted more live stock at that market
/ in the last seven days than ever
! before, exceeding by 5000 head OF
cattle the largest previous receipss'
which were recorded in 1918.
Grape Shipments Grow.
Brisk revival of the valuable grape
shipments from California to the east
coast is shown in San Francisco re-
poris. Utilization of Il new gas proc
eSs in preserving fresh grapes has
permitted shipments by steamer
through the Panama canal. Large
shipments went forward today, and
many thousands of tons of cargo
space have been reserved.
The great plant of the WestinE-
house Electric Company has raised
production this week to 50 per cent of
capacity. according to Pittsburgh, and
steel mills also are increasing out
put, although less rapidly.
Depressing influences are not en-
tirely lacking. Car shortage. accord
ing to coal operators. is still tre-
mendous factor in holding back eX-
pansion. In connection with trans
portation difficulties. the lake sea-
mems strike is being anXiously
watched by every business man in the
northwest, st. Paul advices declared