The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-04-06
Business
Conditions
on Upgrade
Situation in East Nearly Nor
NAL; Central and West Max
ing Rapid Strides, Re-
ports Show.
Decrease In Failures
By Associated Press.

Washington, April o.-oeciai aeioii'
we're made in two official quarters
todav that general business conditions
throughout the east were nearly nor
NAL. The central and western parts
of the United States were said, at the
same time, to be making rapid strides
towards recovery and the prediction
was offered that those sections soon
would be in better condition than at
any time since the prosperity incl
dent to the war.
Secretary Mellon asserted, on re-
turning from his first vacation since
he became head of the treasury, that
the industrial and financial situation
In the east appeared very satisfac-
tory
The federal reserve board declared.
in its official monthly bulletin, issued
later in the day. that continued active
business conditions in every section
were shown by the maintenance OF
high rate of industrial production.
Few Failures Reported.
The bulletin also called attention to
the unusually low number of com
mercial failures reported in February,
which. according to its figures, was
the smallest since September, l92o.
The total number of failures, the re-
mort showed, was A per cent less
than in February, 1922, and "a per
cent below the record reached lit De-
eember, 1921, near the height OF the
denationary process through which
the country went. There was a
marked decline in 9he number of fail
,,res in February as compared with
January and incomplete reports Tor
March indicate another reduction.
Some concern has been expressed
by government officials recently re-
garding. marked tendencies towards
imitation. but these were discounted
by the treasury secretary. lie SAID
that. while there undoubtedly was
some speculation. as is true always
during periods of prosperity and ex-
mansion. it need not be considered
dangerous.
Little Increase in Borrowing.
AIr. Melons views on this phase OF
The situation We're substantiated by
she bulletin which reported little IN
crease in the borrowings from the fed
..r,it reserve banks. Commercial banks
which are members of the reserve
system. however, have greatly increas-
ed their loans and investments. Ihe
total of the two items pf assets
a few weeks ago was something ike
S25 roc, 600, whereas the highest point
reached by loans and investments at
The peak of the 1920 expansion was
only $400 900 900 greater.
1t was explained that continued gold
imports have acted to build up the
reserves of commercial banks. permit
them to maintain a low Indebtedness
10 the reserve banks and at the same
time allow them to make new loans
ie their customers without calling on
the rediscount privileges of the re-
serve banks. The reserve board re-
garded 1t as important to know that
The commercial banks, with the con-
tinued inflow of gold, could meet
The extra loan requirements without
calling on the reserve banks for ad-
ditional accommodations.
This statement was accepted as
desire by the reserve board to call the
attention of the commercial banks
to prepare for the time when the
steady stream of gold cannot longer
he counted on or when exports OF goid
may actually take place. NO reter-
ence was made, however, to any ex-
pectation of an immediate turn In the
tide Of gold.