Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-01-02
LITTLE CRITICISM HEARD
AGAINST RESERVE BOARD
Credit Resources Are Incrcas.
ing and Money Is to BE
Had Cheaper.
Railroad Expenditures Going Into
Permanent improvements. and In
dnstriui Activity ls NcsultinS
Thcrcfrom, According 10 Ieports.
ny Walter IL. brown,

~
NEW YORK. Jan. 1.--Wiht the in
crease in credit resources and the
cheaper money resulting, criticism
Of the Federal Reserve Board Is
iessen!ng. Among those not fully in
formed. there has been IA tendency to
hold ~ responsible for the drastic de-
lation. This drfla,ion was the re-
suit OF economic forces beyond any
-" : control. "n The poll :; pursued
by ~ board had tho effect OF lessen
ing the blow. rather than TO accclc-
rate 1t.
y year ago. the Federal reserve
''''"S In az .ua; circulation amounted
"a ;3.3ii.GsG, -. At the cni of 1921
this had been reduced To 50 li:.4.7.-
300. a year a.;c. the ratio OF gold re-
'.rvcs to Fci2'aI reserve notes in
circulation. after setting aside 80 per
cent against deposit liabilities. was
800 per cent. This year IL is 90
ncr cent ana within the pas, few
weeks has actually been over 100 Fer
"nt. y ycar ago. the total gold re-
fcrvcs We're s2.059333.00O. This ycqr
they amount To $2.S6?. COO. coo, an in
r,ase os app oximatcly $500. .GOG.
az" gain represents aim - er:licy
DID Imported from abroad. largely
=. q.
N"dcm. Cnrsda and l!ri'ish :rdia.
Industries Rcdur al.
Concerning the outlook for tie
'ninS year. hopes OF Improvement
IRE based upon something more sub
antial than year ago. The stock
market has already begun to dis
cunt this Improvement In the adj
ancing prices of industrials. There
good reason for this. Inventories
ave been reduced, while the recur-
ms demand for necessary supplies.
nds surplus stocks practicaily dis
nscd OF. The railroads are placing
"dcrs for new equipment. being
dced with the necessity OF meeting
ne arrears of maintenance already
40 long dcf~-.-d. New building has
en- given an impetus through the
duc.d cost Of capital and through
teer necessity the buyers strike T..
ming To an end
Frozen loans IN the agricultural
istricts are rapidly being liuuidatcd
= the South. where this was ut its
"rS'. An advance In price of cot
ON mas made this possible. notwith-
landing the confusion into which
"tton estimates have been thrown
rough the laundering Of tho crop
'Stimating Bureau. while in the cat
cruising districts revolving fund
some $50 100000 has been provided
tho banking interests 10 take care
lonr-term paper that could not be
ndl"d through the Federal reserve
yStcm.
T." Mnkc improvements.
There is this advantage from gains
be made during the coming year
hat they will be on a substantial
aSis and not resembling the shadow
'rospcrity which followed the wild
pending Of war wages and war
'roiitS. Railroad expenditures for
example. VIII go into permanent i'm
provemcnts, ana the Industrial activ-
y resulting thcrcfrom will spread
II constantly wid,ning circles. in
crcasins the buying power Of wage
"arncrs. who themselves. arc in need
,: making purchases for necessary
articles of necessity. deferred by the
depression OF the past year.
Much remains 10 be done. Labor
mas Sun further TO 60 in adjusting
itself Ia new conditions. steel pric,s
nave not yet been stabilized, coal is
selling at 100 per cent above nrc-
war prices. although many other
Items on the list are actually below
nre-wnr levels. Taken all in all. we
nave made Il good stride forward in
1921. while 1929 promises opportunity
10 take several strides.