The Holly chieftain., 1922-01-05
DECEMBER SHOWS
BUSINESS BETTER
HOLIDAY TRADE INCREASED UP
TO 10 PER CENT OVER
PREVIOUS YEAR.
INCREASE over 1920
CONTINUED UPWARD TREND OF
GENERAL CONDITIONS SHOWN
BY Y. s. REPORT.
twe.,.ru Newspaper Union S.., se,ie..,

Washington. = Continued upward
movement of business and the gradual
| restoration Of normal conditions are
indicated in the comparison Of reports
in the last month with those Of Decem-
Der, 1920, according to the December
review of the economic situation is
sued 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,
sis test of the sOundness of preced-
ing business activity. Reports from
the federal reserve districts covering
over half of the month, show that
this years demand in the Eastern dis
tricts has registered an increase run
ming as high as 10 per cent of that OF
1920, while in other districts the situ-
alton is pronounced unsatisfactory"
Manufacturing conditions, however,
| the board reported, as far from uni
| form there being decrease of activ-
ity In the iron and steel industry, while
textiles showed little change, and un-
certainty exists as to the future of the
clothing industry, due to labor dis
turbances and the continued demand
of consumers for lower prices.
"Freight rates." the board said,
continue ss disturbing factor due
to the belief that reductions already
announced as affecting some commod-
tiles may be much more widely ex-
tended"
| Relatively lower prices for cereals
and cotton, the board continued, had
discouraged trade in the agricultural
districts and also had resulted in re-
tardlng the liquidating of frozen loans.
Hardware, and related lines also were
said to be in an unsatisfactory condl-
ton, but wholesale prices "are show
ing increased stability"
"a decided improvement in Euro
| pean exchanges" the board said, has
tended to some extent to help the for
| eIgn trade situation during December,
but the extreme caution in the exten-
sion of bank credits, which was previ-
ously so notable phase OF our freight
trade, still continues. Export figures
indicate a still further decline of ac-
tivity in staples, while imports show
an advance.
Disturbed conditions in various
countries of Europe still render a
| maintenance of business relations with
them uncertain and hazardous. Rates
| of interest, which had made notable
decline during. the autumn. have tend.
ed, on the whole. still further down
| ward. 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 most diff
flcult period, in which many weaker
operators have been forced out of busi-
ness and in which, as result of great
| ly reduced freight rates, smaller avail.
able cargoes and continued high costs
of operation, very few companies
have been able to make satisfactory
showing. This condition has been
worldwide, although American com
| panies have felt in special degree the
handicap of "A higher scale of wages
than their foreign competitors have
been obliged to pay"