Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1922-04-07
HIGHER PRICES RESULT
FROM EASIER CREDITS

Following is a summary of bust
ness and agricultural conditions in
the twelfth federal reserve district
as reported 20 the federal reserve
board by John Perrin, chairman of
the board and federal reserve agent.
Federal Reserve Bank of San Fran
cisco, March Is, 1922:
Easier credit conditions i'm agri-
cultural sections have been the i'm
mediate results Of advancing prices
tor the principal agricultural prod
ucts Of The district, including cattle,
sheep, hogs, The grains, the fruits,
wool and sugar. During the four
weeks ending March 3, normally a
period of some credit expansion in
this district, country member banks
reduced their borrowings from this
bank by approximately $3,0O0,O00
or So per cent I'm the same period
the prevailing interest rate charged
borrowers in Salt Lake City. the fl
nancial center of the intermountain
district, declined from 8 to Z per
cent and in Spokane. the center of
another great agricultural section,
from to 612 per cent. Advances
during the past two months in the
prices of farmers products, accom-
panied as they have been by stability
or a continued moderate decline in
the price of most other groups of
commodities, have effected a more
nearly normal relation between the
prices of things the farmer sells and
the price of the things he must buy
than has prevailed for the past year
and half Such an adjustment has
long been considered essential to any
marked Improvement Of the general
business situation
In contrast with conditions pre-
vailing year ago, carryover stocks
of agricultural products are at pres
ent normal or below normal The
March list report Of the United States
department Of agriculture showed
that stocks of wheat on the farms of
the principal wheat growing states
of the district amounted to but 10
per cent of the former seasons crop,
Last year on the same date approx
mately ! 6 per cent of the 1920 crop
was still held by the producers.
Stocks of barley in California have
been similarly reduced from the ex-
ceptionally high levels of 1921 and
holdings Of wool and of canned and
dried fruit are less than the amounts
customarily on hand at this season.
Productive activity in this district
was we'll sustained during the short
month of February. In the lumber
industry, production, shipments. and
orders received were greater than in
January, 1922, or February, 1921.
The mills operated at approximately
80 per cent of normal capacity com
pared with 50 per cent year ago.
The resumption of inquiries for lum-
Der from the agricultural states of
the middle west was a particularly
hopeful sign, especially for the in
land mills which have not shared in
the thriving water trade with the
Atlantic Coast and Japan. Con-
tinued slow improvement was notice
able 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 announced
that operations would be resumed.
NO ore has yet been mined by them.
Figures now available on the Janu-
airy sales of electric power provide
further evidence of increased indus
trial activity. Total industrial sales
were per cent greater in the Pa
ettic Northwest and slightly greater
III California than in January. 1921,
the latter increase occurring despite
a marked reduction in consumption
Tor agricultural purposes. Similar
Improvement in the intermountain
states is not yet discernible.
Increased productive activity and
the resumption of seasonal outdoor
work in some sections have COM
/ oined to relieve the unemployment