Capital journal. (Salem, Or.) 1919-1980, 1922-03-28
EASIER CREDIT IS
RESULT OF FARM
PRICE ADVANCES

San Francisco, Mar. 2S.-Easier
credit conditions in agricultural
sections have been the immediate
result of advancing prices for the
principal agricultural products of
the twelfth federal reserve dis
trict, John Perrin, federal reserve
agent, declared in his monthly re-
port made public here today.
During the four weeks ending
March 8, normally period of
some credit expansion in this dis
trict, country member banks re-
duced their borrowings from the
federal reserve bank by approx
mately 100000 or SO per
cent" the report said. "In the
same period, the prevailing inter
est rate charged borrowers in
Salt Lake city, the financial cen
ter of the intermountain district,
declined from to 7 per cent and
In Spokane, the center of another
great agricultural section, from
Z to 61a per cent.
Prices Equalizing
Advances during the past two
months in the prices of farmers
products, accompanied as they
have been by stability or a con-
tinued moderate decline in the
price of most other groups of com
modities, have effected a more
nearly normal relation between
the prices of things the farmer
sells and the prices Of the things
he must buy than has prevailed
for the past year and half. Such
an adjustment has long been con-
sldered essential to any marked
improvement of the general bust
ness situation.
"In contrast with conditions
prevailing year ago, carryover
stocks of agricultural products
are at present normal or below
normal. The March l report Of
the United States department of
agriculture, shows that stocks of
wheat on the farms Of the princi-
pal wheat growing states of the
district amounted to but 10 per
cent of the former seasons crop.
Last year on the same date ap-
proximately 16 per cent of the
1920 crop was still held by the
producers Stocks of barley in Cal
ifornia have been similarly re-
duced from the exceptionally
high levels of 1921 and holdings
of wool and Of canned and dried
fruit are less than the amounts
customarily on hand at this sea-
son.
Lumber Industry Gains
Productive activity in this
district was well sustained dur
ing the short month of February
In the lumber industry, produc-
tlon, shipments and orders receiv-
ed were greater than in January
1929, or February, 1921. The
mills operated at approximately
IS per cent of normal capacity
compared with so per cent year
ago. The resumption Of inquiries
for lumber from the agricultural
states of the middle west was a
particularly hopeful sign, espec-
tally for the inland mills which
have not shared the thriving wa
ter trade with the Atlantic coast
and Japan. Continued slow i'm
provement was noticeable in the
mining industry effected more by
lowered costs Of production than
by appreciation in mineral prices
Work is proceeding slowly at the
five large copper mines of the
district which in January an
nounced that operations would be
resumed. No ore has yet been min
ed by them.
Increased productive activity
and the resumption of seasonal
outdoor work in some sections
have combined to relieve the un-
employment situation and more
men were emplowed in February
than in January. The peak of un-
employment appears to have been
passed.
Buyers Are Cautious
Notwithstanding accumulat-
ing evidence Of better business in
the future, buyers both at retail
and at wholesale are proceeding
cautiously. Retail sales as report
ed in 33 department stores and
mail order houses compared less
favorably in February with those
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