Arizona republican., 1922-01-01
Many Large Institutions Make This
City important Financial Center
Financial Condition of Valley Is
Good And the Future Looms Bright
With Conflidenceand Encouragement
BY w. n. THOMSON
Vice. President Phoenix National
Bank


business and financial conditions In
the Salt River valley during the past
wear have not been all that we would
like to have had them, but in at
tempting to give consideration to
these conditions, one must keep in
mind that this situation is equally
true of the United States in general
and the whole world at large. We
have learned in America that we are
not isolated and that world conditions
affect the prosperity Of our country
and we have also learned in the salt
River valley that we, too, are affected
by world conditions and that we are
also affected by conditions which are
adverse or favorable to any OF the IN
dustries within our state.
The unfavorable range conditions
in the early part Of the year caused
losses to our cattle and sheep men in
addition to the losses sustained
through the reduced value of their
products as a result of the general
deflation experience. The copper com
panies who had been producing cop
per at peak, found that the world was
overstocked with copper and practl-
cally stopped their operations. Both
OF InHSE 01ACCtAJ oAANSSNN>
the merchants and the farmers of the
Salt River valley, first through the
reduced purchasing power Of cattle
and sheepmen, and, secondly, so far
as the copper companies are con-
rerned. through the reduced distribu-
tion of wages to labor and reduced
purchases from the merchants OF
Phoenix. not only on the part of the
copper companies but also through
the loss of the business on account
OF reduction in number of employees.
Both Of these conditions, too, directly
affect the farmer of the Salt River
valley, as the mining companies are
one of the largest outlets for all OF
the food products produced in the
valley. In addition, the farmers OF
the Salt River valley were forced to
carry over the largest cotton crop
which they have ever produced and
which was produced during the period
of high costs, and large portion OF
it is still unmarketed.
World Conditions Affect
We find in analyzing the cotton sit
uation and the copper situation that
we feel the direct effect of world con-
ditions in our own economic affairs.
All Of the adverse conditions men-
toned above, however, are speedily
righting themselves and it would seem
that the silver liLing to the cloud is
showing itself more each day.
Through abundant rains, the ranges
throughout our state are reported
now to be in perhaps as good condi-
ton as they ever have been. Cattle
and sheep losses have stopped, sales
have been made by these interests,
icfa 81 Y1r<fpnc h11f q
prices which have afforded some re-
lief. The great copper companies Of
the state, whose investments have
been lying idle for so long, find that
the copper surplus has been so greatly
reduced and that prices Of their prod
uct have improved to an extent where
they can again make plans for the
early reopening of their properties,
and the effect of their commencing
operations upon our farming opera
tions and local business will be of
immeasurable value in our upward
climb.
The farmers of the valley have been
able to sell some cotton, and from
the best information we can get, 1t
would appear that the early spring
months should show complete liquida-
ton, not only of our carry over cot
ton but also Of the crop produced this
year Cattle-feeding operations dairy
ing and other diversified farming are
again looked upon with favor, and
with changing economic conditions
the farmers throughout the Salt River
valley and the United States should
begin to get some relief from the alb
normal conditions Of markets which
they have had to contend with for
some time past.
The fact that the farmers Of Amer
lea make up a large portion Of our
population and that the great volume
of their purchasing power directly
affects the Industrial life of the coun-
try is so evident to those who have
the leadership of these affairs In
hand that they realize permanent ma
ton wide prosperity cannot be
brought about until this great pur-
chasing power has been restored, and
we daily see evidences of earnest
efforts in that direction.
Financial publications are more
and more calling attention to the fact
that it is quite impossible for the
farmer to purchase on large scale
the things which are necessary for
him to use in his business paying
sor them inflated prices, when many
of the commodities which he produces
are selling at pre-war prices or less.
Producers Hardest Hit
It is to be noted that the economic
cycle which we are passing through
mas affected the producers more Sc
verely than any previous depression
mas ever done. and it Is also a fact
that these same economic conditions
viii OF their own weight force an ad-
iustment of these conditions, so that
the producers OF the things the world
needs in order that 1t may exist will
be in the not far distant future more
equitably rewarded for their efforts.
The Salt River valley and the whole
state Of Arizona are producers of new
wealth and all OF the things which
are produced in our great state are
things for the comfort OF mankind,
and, therefore, the future OF our state,
whose resources are hardly scratched,
is wonderful and offers opportunity
for investment of capital and work
which are probably unparalleled. 1t
is interesting 10 note when consider
inc our industries that the copper
mines OF Arizona produce approx
mately 25 per cent OF all the world 5
supply Of copper and that they pro-
duce AZ per cent Of all copper pro-