The New York herald., 1922-01-03
BUSINESS IS FOUND
ON NORMAL TREND
Federal Reserve Board Reports
Net Improvement Over
Year Ago.

WASHINGTON, Jan. 2.-Continued up
| gradual restoration OF normal conditions
/ are indicated In the comparison Of re-
ports In the last month with those OF
the corresponding month OF 1920. accord
ing to the December review OF the eco-
nonnic situation issued tonight by the
Federal Reserve Board.
Net Improvement was found by the
board despite the RECESSION OF business
activity in December as compared with
the same month last year.
The holiday trade" the board said.
'fs q test OF the soundness OF the pre-
ceding business activity. Reports from
the various Federal Reserve districts
covering over half of the month show
that this years demand in the eastern
districts has registered an increase run
ming as high as 10 per cent. OF that OF
| 1920. while in other districts the situa-
tlon is pronounced satisfactory"
| Manufacturing conditions, however
tho board reported as far from uniform :
there being a decrease Of activity in the
iron and steel industry while textiles
showed little change from previous
months and uncertainty exists as to the
future Of the clothing industry. due to
labor disturbances and the continued
demand OF consumers for lower prices.
Freight rates." the board said, con
tinue as disturbing factor due to the
belief that reductions already announced
as affecting SOME commodities may be
much more widely extended in the near
future"
Relatively lower prices for cereals
and cotton, the board continued, had
discouraged trade in the agricultural
districts and also had resulted In re-
tarding the process Of liquidating frozen
loans. Hardware and related lines were
also said TO be in an unsatisfactory con-
dition. but wholesale prices "are show
ing increased stability" Unemployment
conditions were reported by the board
as but little changed.
"A decided Improvement in European
exchanges" the board said. has tended
to some extent to help the foreign trade
situation during the month OF December.
but the extreme caution in the extension
of bank credits which was previously so
notable phase of our foreign trade still
continues. Export figures indicate a
still further decline of activity in staples.
while imports show an advance.
! OiSlurDeu conultlOnS In various cOuN-
tries OF Europe still render q mainten-
ance OF business relations with them
uncertain and hazardous. Rates of in
terest, which had already made notable
decline during the autumn, have tended
on the whole still further downward,
partly owing to the fact that there was
no foreign outlet for our capital"
Reviewing the year in the shipping
| industry the board declared that the
industry has been through 4 most ar
ficult period. in which many of the
weaker operators have been forced oui
OF business and in which, as g. result
OF greatly reduced freight rates, smaller
available cargoes and continued high
costs of operation, very few companies
have been able to make a satisfactory
showing. This condition has been
worldwide. although American COM
panies have felt in special degree the
handicap OF higher scale of wages
than their foreign competitors have beer
obliged to pay