Perth Amboy evening news., 1923-04-07
SAY BUSINESS
SATISFACTORY
Conditions Sound Secretary
Mellon Finds Larger VOL
un1e of Sale

WASHINGTON. April Declare
lions were made In two official quar-
| ters today that general business
conditions throughout the East were
nearly normal. The Central anu
| Western part OF the United States
were said to be making rapid strides
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 sit
J uation In the East appeared very
/ satisfactory" His trip included Wis.,
its to several important centers. and
in all of these, he reported, ne
found renewed evidence of prosper
ity and optimism.
Tho Federal Reserve Board de-
ciared In its official monthly bulletin,
issued later in the day, hat con-
tinued active business conditions IN
every section were shown by the
maintenance OF a high rate OF in
dustrial production. Along with this.
the bulletin said. there had been
increases in freight trafic and en-
ployment and a larger volume Of
wholesale and retail sales.
The bulletin also called attention
to the unusually low number OF
commercial failures reported in
February which according to its fg-
ures, was the smallest since Sep
TENDER. 1920.
The total number of failures, the
report showed, was A per cent less
than in February, 1929, and 81 par
cent below the record reached in
December, 1921, near the height Of
the defiationary process. There was
a marked decline in the number Of
failures in February. as compared
with January. and incomplete re-
ports for March indicate another
reduction.
Some concern has been expressed
by government officials recently re-
garding marked tendencies toward
imitation, but these were discounted
by Secretary Mellon. He said that.
while there undoubtedly was some
speculation. as is true always dur
ing periods of prosperity and ex-
pansion. 1t need not be considered
dangerous.
Mr.. Melons views on this phase
OF the situation were substantiated
py IAC DuiAcl4us WHICH reported llLLie
increase in the borrowings from the
Federal Reserve banks. Commercial
banks that T members OF the re-
serve system, however. have great
ly increased their loans and invest
ments. The total Of the two items
Of assets a few weeks ago was some
thing like $25,700, 100000, whereas
the highest point reached by loans
and investments at the peak of the
1920 expansion was only 100000
900 greater.
1t was explained by the bulletin
that continued gold imports have
acted to build up the reserves of
commercial banks, permit them to
maintain a low indebtedness to the
reserve banks and. at the same time,
allow them to make new loans to
their customers without. calling on
the r~ediscount privileges of the re-
serve banks.
The reserve board regarded it as
important to know that the CONNER
cial banks. with the continued in
flow of gold, could meet the extra
loan requirements without calling
on the reserve banks for additional
accommodations.
This statement was accepted as a
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 be counted on or when ex-
ports of gold may actually take
place. No reference was mao
however, to any expectation OF an
immediate turn in the tide Of gold.