The daily star-mirror. (Moscow, Idaho) 1911-1939, 1922-01-30
PROSPERITY With
THE 1922 CROP
FEDERAL RESERVE AGENT SAYS
FINANCIAL RECOVERY WILL
BE PERMANENT.

1 San Francisco, Jan. 2S-States o1
the Twelfth Federal Reserve District
being so largely dependent for pros
perity upon the agricultural and live
stock Industries, must await the re-
suits of the 1922 crops before they
will recover permanently and sub
stantially from the severe readjust-
ment of the past year, John Perrin,
San Francisco, federal reserve agent,
declared in his monthly report issued
here today.
There is already apparent, how
ever" the report said, pronounced
improvement in the credit situation
when compared with the beginning of
1921 as indicated both by the strong
position of the banks generally
throughout the district and by the
availability and cost of bank credit
for agriculture, industry and COM
merce.
Total borrowings of member banks
from the Federal Reserve Bank at the
beginning of 1921 were $171, ,211 900 or
more than twice the $71,2El,o00 bor-
rowed at the beginning of 1922.
Improvement on the condition of
the 81 reporting member banks is re-
Elected in the reduction during the
year in the ratio of their total loans
was S1.3 percent at the beginning of
1921 and rs percent at the beginning
of 1922
Prevailing interest rates charged
by the principal member banks were
reported to be easing slowly late in
1921 and it would appear that con-
servative enterprise in general will
not be hampered in it's conduct in
1922 either by lack of available bank
credit or by it's cost.
Customary yearly returns to the
United States Department of Agri-
culture show that the December 1st
farm value of the Is principal crops
of the district was $51S, 10000 600 com
pared with $730,000,000 in 1920, de-
cline of thirty per cent.
"These figures reflect the substan-
tiaI decreases which have occurred
in the prices Of farm products.
"As a measure of the purchasing
power of the rural communities, how
ever, they should be qualified by al
lowance for reductions which have
occurred during the same period in
the cost of living, which were 20.4
percent between July 1920 and De-
cember 1921, and particularly in the
farmers cost of production. In the
latter item wages of farm labor are
one of the predominant elements and
these are reported by the department
of agriculture to have been $3.50 per
month with board in 1921 as com
pared for $73.21 with board in 1920
''These industries of the district di-
rectly allied with agriculture are in
appreciably better condition than they
were at the beginning of 1921. Sixty
one flour mills are operating at Sc
percent capacity compared with 26.7
percent year ago. The canned fruit
and vegetable industry, which early
last year was seriously embarrassed
with abnormally heavy carryover of
goods produced at high costs, has
been able thus far to dispose of this
and most of the 1921 pack
which is reported to have been 20
percent of that of 1920. Market de-
nand at the end of 1921 was reported
good, and present estimates are that
he fruit and vegetable pack in the I
district during the coming year will
De large one.
"Tn Industrial activity the most /
lotable contrast with conditions pre-
railing a year ago appears in the
umber industry. December 1921 was
more active than customary. Pro-
luction of four associations of this
district was 36 percent greater than
was in December, 1920; orders re-
,eived were 179 percent greater and
hipments 55 percent greater in
mount; untitled orders reported bli !
wo associations were 100 percent
greater at the end of 1921 than they
we're at the end of 1920. Exports of
umber to Japan during the first nine I
months of 1920, and recently a slight
evival in Australian demand has ap-
Building activity throughout the
district continues at record figures.
December returns being only second {
o those of last October. The year {
921 shows an increase of 315 per- ]
ent in number and 17.9 percent in {
alue of permits compared with 1920. {
Business failures continue to be