The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1924-06-04
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0 BUSINESS CONDITIONS IN J
0 THE UNITED STATES =
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Further slowing down OF industrial
production is the outstanding feature
of the business situation, states the
current issue of the Guaranty Sur
-ey, published in New York.
The gradual decline of average
wholesale prices continues. but at q
slower pace than earlier in the year,
the Survey says. Wholesale trade Is
increasingly hesitant, and retail trade
has receded somewhat from the levels
Of April. While political factors, such
as those which have delayed the tax
program and interfered with govern
mental economy, have accentuated
the weakening of general confidence,
the determining influences are econO-
mic.
Lack of balance in the industrial,
situation is inducing establishments
of production Activity in the build
I ing field, for example, is being Gu
tailed here and there a the housing
: situation is relieved, and this in turn
is reflected in a variety of industries
, supplying materials for the cOnstruc-
ton and equipment of buildings.
Orderly Change Now Under Way
1t is significant that these readjust-
ments were not unexpected. The per-
sistence of generally cautious buying
by distributors and the close con-
formity of production with current
consumption, as well as the main
~tenance of an unusually strong posi-
ton on the banks, have preserved the
bases for the orderly changes nov
under way.
The continued ease in the money
market, in response TO which the dis
count rate of the New York Reserve
bank was reduced from AZ to 4 per
cent at the beginning of this month,
represents a credit situation in the
latter part of 1920. There is no pos
sibility of such drastic financial re-
adjustments as were then necessary,
/, Moreover, the fact needs emphasi.
that business as a whole, measured
) by any other than the peak standard:
of 1920 and early 1923, is still at q
fairly high level.
. The passage of the bonus bill re
s duces the extent of possible relic.
: from b~urdensome taxation. 1t is for
: %tunate, however, that for the mos
e part the dole is in the form Of in
surance certificates rather than cas-
S payments. Only after two years vii
n the privilege Of borrowing from tn
e banks on the security of the cert
~icates become operative, and tn
maximum sums that may be borrow
ed, started at about 8 per cent of tn
IS face amount of the policies, will be .
Is a gradually ascending scale. Thus tn
% financial readjustments made nece:
Is sary, as well as the release of ne,
purchasing power, may be effecte
gradually and without violent shoe
n 10 BUSINESS III general.
IN Some Agricultural Aspects
III The May forecast of the whit,
is wheat crop by the department
Is. agriculture is encouraging. AS cor
e. pared with a year ago the reductiC
e: in the acreage sown is nearly Is p
sc. cent, while the indicated production
IS, less by 3.5 per cent The large
SIS estimated increase in production
s. compared with last year is in Kanss
where a total yield of 134,OOO,O
bushels is forecast, as against S4,OOl
a 600 in 1923, while the largest d
ad creases are in Illinois, Missouri a
de California. The figures indicate t
cts smallest winter wheat crop sin
ish 1917, together with a materially
,on creased acre yield, which means low
len costs of production. According to I
is official reports, cotton acreage will
the much greater than last year. a
out larger quantities of fertilizer are
mi ing used. Generally good crop c,
led ditions throughout the Mississippi z
scs, Missouri valleys give promise of s.