Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-01-05
BUSINESS IMPROVES,
SAYS RESERVE board

WASHINGTON, Jan. 4.-Contin-
ued upward movement of business
and the gradual restoration OF nor
NAL conditions are indicated in the
comparison Of reports of last month
with those of the corresponding
month Of 1920, according to the De-
cember review of the economic situa-
ton issued by the federal reserve
board.
Net improvement was found by
the board despite the recession Of
business activity on December as
compared with the same month last
year.
1.-The holiday trade the board
said, sis a test of the soundness of
preceding business activity. Re-
ports from the various federal re-
serve districts covering over half of
the month show that this years de-
mand in the eastern district has
registered an increase running as
high as 10 per cent of that of 1920,
while in other districts the situation
is pronounced satisfactory"
Manufacturing conditions, how
ever, the board reported as far from
uniform, there being a decrease of
activity in the iron and steel indus
try, 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 de-
mand of consumers for lower prices.
Freight rates." the board said,
continue as a disturbing factor due
to the belief that reductions already
announced as affecting some COM
modities may be much more widely
extEnded in the near future"
EAatively 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 also was said to be in an I'M
satisfactory condition, but wholesale
prices ARE showing increased stabil-
ity." Unemployment conditions were
reported by the board as but little
changed.
"a decided improvement in Euro
pean exchange" the board said,
has tended to some extent to help
the foreign trade situation during
the month of December, but the eX-
IRENE caution =, 49, extension of
bank credits, which was previously
so notable a phase of our foreign
trade, still continues. Export fig
ures indicate still further decline
of activity in staples, while imporI
show an advance.
Disturbed conditions in countries
of T-,,'.-.>o still render q maintenance
of business relations with them un-
certain and hazardous. Rates of in.
terest v-'>'oh haG already made a
notable decline during the autumn
have tended, on the whole, still
further downward. partly ow'n" to
the fact that there was no foreign
outlet "or our capital"
Reviewing the year in the shipping
industry the board declared that the
Industry has been through a most
diffic-'s period. in which many of
the weaker opera to~1 have been
forced out of business and ~ which,
as result of greatly reduced
freight rates, sma" available car
goes. I'D 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 been obliged to pay.