The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-06-13
SO, DAKOTA BANKERS
TOLD Low INTEREST
IS AN ECONOMIC BOON
Money Rates Lifting Region Out
Of Depression, Says Re.
serve Statistician
BUTTER Is C0NvALESCING
Crops Conducting to Improve
ment, Minneapolis Banker
Tells Convention
BUTTER is C0NvALEsClNG

vorable developments which are tend
ing to lift the Northwest out Of its
present business depression were de-
scribed by O. s. Powell, statistician
for the Federal Reserve bank of Min
neapolis, in an address prepared for
delivery here, today, at the annual
convention, of the South Dakota
Bankers association.
Most important to South Dakota
among constructive business develop
ments is the low level of interest
rates in national money markets. Mr..
Powell said. Low interest rates, he
explained, stimulate bond issues;
these increase. building construction
and mean greater business volume
with more payrolls and purchasing
power. all beneficial to prices Of farm
products.
The second constructive factor in
the business situation. the Minneap-
oils statistician said, Is the fact that
Embellishments Of last fall have
been brought about Al remedies for
over : production. over : stocking and
underconsumption.
Butter Situation Easier
I'm the case of butter" he con-
tinued. "the lower prices have stimu-
lated q rapid reduction in the storage
stocks Of the commodity, together
with a moderate decrease in produc-
ton. AS a result the butter situation
is convalescing. Butter prices rose in
March and April at q time when the
price of butter has ordinarily de-
clined.
In the case Of wheat. preliminary
and unofficial statements indicate
that the wheat acreage, especially Of
durum wheat. has been curtailed and
the acreage released has been planted
to a variety Of other crops, principal
ly flax and barley, for which the mar
ket is apparently more receptive"
Favorable crop condition is another
factor which Mr.. Powell said prom
ises to improve the northwest busi-
ness situation. He declared early
opening Of farm work, abundant rain
fall and cool weather points, TO a good
root developzssnt IL the growing
crops.
In his opinion. 'large yields per
acre are more important to the
Northwest than high prices for the
CROP" especially In the southern and
eastern portion. Of the Ninth federal
reserve district, where q large per-
centage Of the crop consists Of feed
grains, pastures and hay.
Powell satd' xttIk fourth constructive
factor is that business has been quiet
during the past winter, and there has
apparently Keen no accumulation Of
debt in an effort to maintain business
at anunwarranted level. Headdedt that
country banks were in q strong posi-
ton, borrowing. less from the federal
reserve bank this year than a year
ago. in spite Of small crop. and UNI
favorable price conditions.
Husbanding Resources
In this situation. he saw indications
that the rural districts are. huband-
ing their resources carefully, and not
spending in excess OF income.
At the present time. conditions are
mixed, with some industries and ter
ritories doing more business than q
year ago and others in q state Of de-
preston. Mr.. Powell explained. In
the northwest. he said, the southeast
ern portion Of South Dakota has been
the outstanding white spot" on the
map during the past winter.
with abundant feed crops. this
section has been able to carry on an
extensive feeding program which was
at least moderately profitable in all
lines except lambs" he related. our
thermore, this area is not as extern
sively involved in dairying as south
ern Minnesota is. and the low price
of butter has not had Is important
and unfavorable effect as 1t has In
Minnesota"
The reserve bank statiStician said
the shrinkage Of the volume Of bust
ness In the northwest has not been
as pronounced as in other parts Of
the country.