The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1923-08-03
JULY CROP WITH
BUSINESS REVIEW
Condit ons In Ninth Fed
eral Reserve District
CHANGES ARE SEEN
Tendency Toward Greater ri.
versity Cereal Production
Is Noticeable

Associated Press D=spatcnl
Minneapolis, July 27.-ln his
monthly review of the crop and
business conditions for the Ninth
Federal Reserve district, issued
here today, Federal Reserve Agent
John H. Rich says:
Significant changes are taking
place in the direction followed by
agricultural activity in these north
western states. July l reports indi-
cate increases in corn and fax acre
and production, and decreases
In spring wheat, durum wheat and
rye. The reduction In potato acre
age is probably contrary to the long
time trend owing to the extremely
low prices received last year. This
tendency toward a greater diversity
in cereal production in this district
constitutes q good beginning for the
readjustment that must be made to
bring our production into harmony
with world needs.
Wheat, rye and max moved to
market during the month in larger
volume than q year ago and larger
than the ten-year average. This,
coupled with repeated mention OF
good prospects for crops in other
parts Of the United States and for
elgn countries, depressed all grain
prices in the Minneapolis market
during the month. Marketing OF
live stock was heavy only in the
case OF hogs and calves. A contin-
uation of the apparent tendency to
build up sheep herds and dairy
herds prevented q general decline
in all live stock prices.
Volume Business Increased
The volume Of general business.
when measured by individual deb
Its, increased three per cent. during
the month OF June, which increase
is fully up 10 normal for this month
according to the experience OF the
past four years. 500 Canal ton
mage, both east and west bound, in
dicates a much greater improve
ment over last year, In spite Of
this maintenance Of the volume OF
business, business failures contin-
ued unchanged, indicating that
price margins have not been salts
factory for the marginal firms.
Retail sales OF lumber increased,
but department store sales declined.
When comparison is made with
normal trends for this season, 1t
appears there has been some recess
sion. Retail stocks, however, both
Of lumber and general merchandise,
have been declining and do not ap-
pear to be excessive. although they
are somewhat larger than a year
ago. 1t is altogether probable that
retailers are making careful study
OF their stocks because their pur-
chases from wholesalers have been
far from uniform in different lines.
Agricultural implements and gro
than during the preceding month,
while lumber orders, sales Of dry
goods, hardware and shoes declined.
AS compared with a year ago. the
contrast between sales in different
lines is even greater, groceries and
hardware increasing slightly, and
shoes increasing more than one
fourth, while declines are shown
in agricultural implements, lumber
orders and dry goods. the decline
being greatest in the last named.
Exhibited Mixed Trends
Manufacturing volume exhibited
-four production improved while
lumber manufacturing declined. The
movement Of products to market
was better as compared with last
month and a year ago in -four and
linseed cake, but lumber shipments
declined. Stocks of lumber manu-
facturers increased during the
month nearly one tenth, but at the
end Of the month were nearly one
tenth below q year ago. Mining ac-
tivity increased in all lines except
copper, and maintained q level well
above O year ago.
Projected building activity as
shown by the number and valuation
Of permits granted, declined during
the month more than a seasonal
amount, but did not fall below the
same month year ago. This hest
tatiion In launching building pro-
iects has been due very largely to a
lack of confidence IN the stability
OF building material prices which
continued the decline beginning one
month earlier.
Financial conditions, as reflected
by changes in the balance sheets of
selected banks in the larger cities
during June indicate a greater
economy in the use Of deposits and
a tendency to nquidate obligations.
During the first half of July this
movement was reversed, there be-
ing an increase in deposits and a
much smaller increase in loans.
Borrowings at this Federal Reserve
Bank increased both during June
and the first three weeks Of July.
Federal Reserve notes expanded
unseasonably in July. Interest rates
increased slightly according to the
average computed by this office for
thirteen standard varieties of paper
handled in the Minneapolis market