White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1931-01-02
Depression
Felt Least In
"A Northwest
Bank Statistics Indicate
Conditions Better Than
Rest of Country

the country as it affects the North
west is revealed in the November IS
sue of the Northwest Bancorporation
Review. a trade publication issued
bv the Northwest incorporation OF
Minneapolis that owns controlling
interest in key banks in the state
of Wisconsin, Minnesota, Iowa,
North Dakota, South Dakota, Nebras-
ka. Montana, Wyoming, Idaho,
Washington and Oregon. Just
how the depression is affecting
the Northwest as compared to the
rest Of the nation, particularly in
terest rates, available funds, the slump
in prices Of basic products such as
grain, livestock, lumber, ore, and
fruit and dairy products; what is
happening to freight shipments, cleo
trio power consumption, automobile
and gasoline sales, are all covered
in the article, which follows:
'No major business development
has occurred during the month IN
this territory. Low prices received for
many of our products and slackened
national demand for commodities and
goods which are most subject to
curtailment in periods of retrench-
n1ent. continue to be dominant feat
ures. Following a year of downturn
in the business cycle, statistics re-
lating to trade should now begin to
compare more favorably with those
of a year ago, and this change is al
ready discernible in some instances.
The consensus Of opinion is that the
trough of the curve has been reached,
that there may be some months OF
hesitation, but that the inevitable up
turn is likely to come in the spring.
Funds continue to be ample in the
Northwest and~. Midwest. Borrowing
from federal reserve institutions are
small. Local demand for credit is
normal; interest rates, unchanged
during the month, remain low. In the
four months just closed the stock
market again receded, met with re-
sistance, and ultimately steadied it
self, bonds following the same general
course. A feature of the securities
market was the rapidity with which
a So,0OO,000 bond issue of the State
of Minnesota was taken up; these
securities were entirely absorbed by
the public within a few hours after
being placed on the market
This territory, although affected
materially by the slump in price OF
many commodities and by the lessen
ed outside demand for its products,
continues to maintain its equilibrium
IN far better manner than most sec
lions. Our basic operations are such
that we swing less high in "a boom
period but not so low in the time
If downturn. Profits accruing from
cash grains, of course, have not been
satisfactory for a period Of years,
,,t it is to be remembered that so
far as farm products are concerned,
20 per cent of our territorial income
rom agriculture is derived from live
stock. Furthermore, an unusually
large proportion of our manufactures
is made up of food products which
suffer less curtailment, if any, in
periods of lessened buying power.
Another steadying influence is that
per capita wealth in this region is
considerably above that OF most sec
tions. Among the IS states leading
in per capita wealth, are nine which
are usually, named in this publication
as included in our territory-Wyom-
ing, South Dakota, Montana, Iowa,
Nebraska, Idaho, North Dakota,
Minnesota, Washington.
During the four weeks ending Oc-
tober 29, dollar volume of business
in this district, as indicated by check
payments made through banks in 33
leading cities, was 21.7 per cent less
than in the same weeks in 1929, and
1877 per cent less than in the CORE
spending weeks in 1928. For the
full year up to November / only two
of these SO cities-Davenport and
Yakirna-still maintained their lead
over 1929, and but five indicate
larger dollar volume of bust
ness than in 1928 = the two
already named, and Sioux Falls,
Cedar Rapids, and Mason City.
In considering the October record
of dollar volume of business trans.
acted price declines, and consequently
the greater purchasing power OF the
dollar, are to be taken into account;
as stated, the, falling off in 50 north
western and midwestern centers was
21.7 per cent; in 140 leading cities of
the United States the corresponding
decline was s.264 per cent; in al
cities (New York included) it was
42.s per cent? and in New York City
alone the October decline was sos
per cent.
Movement of freight by railroads
in the Northwestern district continues
to show decline from last year. In
the first az weeks of 1880, carloads
of freight originating in this section
numbered 5,354,S3 as compared with
6,249,547 in the same period of 1929,
a decrease of 1913 per cent. The