Evening star., 1932-08-07
MINNEAPOLIS AREA
GAINS IN BUSINESS
Diversity of Industry Aids in
Lessenlng Effect of Eco
nonic Crisis.
Special Dispatch to The Star.

MINNEAPOLIS, August (N.AN.A).
Diversity of industry In Minneapolis
and in the far-fung territory of which
It is the trade metropolis has lessened
the force and effect of the depression
in this city. While unemployment, tax
delinquencieS, curtailment Of incomes
and expenditures for public relief have
mounted to high figures, conditions
here, viewed from all angles. are better
than in most cities in the SOC, 900 class,
particularly those in which one in
duStry dominates the situation.
But that same diversity of business
activities has made more complex the
problem of finance, public relief, mar
keting and transportation with which
Minneapolis is struggling. These prob
lens cannot be regarded as local in
Minneapolis. This city and ST. Paul
are the only large business centers in
their trade area, which comprises Min
nesota, western Wisconsin, the Dako-
tas and Montana.
The twin cities constitute the flnan-
cial metropolis and the primary mar
ket for the commodities which the in
land Northwest both sells and buys.
Their relations with the people and the
business interests of their entire terri
tory are intimate and built on foun-
dation of unusually fine cooperation.
Thus the problems of Minneapolis and
st. Paul are to large extent Identical
with those of other communities, large
and small, throughout the Northwest.
Little HOarding in City.
There are favorable factors in the
Minneapolis situation. One is bank
ing which is in strong hands. Dom1-
mating it are two big commercial banks;
with their neighborhood afhliates and
branch Offices, and the largest mutual
savings bank in the Middle West.
These are well and progressively man
aged Minneapolis has had no bank
failures during the present period OF
dIIll business. There has been little
boarding here. Confidence OF the pup
lie in Minneapolis banking institutions
&c in striking contrast to the uneaSl-
ness reported in many large cities
Rank deposits have declined, OF course,
but not more than 20 per cent from
The two Minneapolis commercial
banks have taken the lead IN
generally successful effort to sta
bilize banking conditions tnrougn5s
hank groups each with about 125 anil
ated institutions scattered over the
Northwest. These afflliates each packed
hv +he resources of its entire group
have nroven towers of strength during
the past three years and nave playeu q
biQ part in checking the epldemlc OF
hank failures that caused widespread
hardship during the years prior 10 1or-
nation of the so-called chains.
The virtually certain prospect OF a pls
Grain crop this year in the spring
wheat belt has created new feenng
IF ontimism not only among North
S,sst farmers. but among Minneapolis
business men. ,,robehly
will remain low, at least IN colnpaI!ee1In eIi
with 1928, for some time: But tle
harvesting of a good crop IN tlliS aiIa xau
other farm belt areas means Work IoI
farm hands, fre1gnt traInc 1oa Ia iaNt rniiIs
and increased activity at nour niliis
and terminal grain markets. r;
Tn MINNEAPOLIS. one OF the great prl-
roarv Grain markets, the operations OF
+be Federal Farm Board and its anil
otes have taken the bulk of the gram
bsndling business out Of the nanoS ol
,rjvate Concerns that supplied the mar
keting machinery for over nan 80 80
tnrv- Coupled with the new od Feoeaai
tax on futures trading, TINS mas reuu0et 81
the day-to-day volume OIL puS.r on. IeveI
the Grain exchange to q very low leNGl
nv. fnture of the long established pr
yate Grain trade of Minneapolis IS one
oS the serious problems with wnlcn Vne
CITY is attempting TO DEAL
Poor Relief Is Problem.
Inst as in many other cltles, sy;c PIGc
reIief is now the outstanding puDth1o
!1roI,1en in Minneapolis. But the PROV
ploD!'en+ +nis Minnesota city is intenSl-
Ead & hecause of sharp division OF oplh-
az hetween opposing points OF VIEW, ,
ION a,i9S. pe'" ,aarlv 3 600 unemployed WORK
ad their families receiving pupllc
Saiief and the city's net ponoeI I:,oo;+o
5ass fxed bv definite legal hIillIa- Ia,,
t;ons hitter controversy mas fl0eH o'N-
this question: 10 ,,sed for direct
relief or for public ad WOLF 1ine3" mti3
teke men out of the breao illie. % ,rro,,r,
taKe h45,,tIic i1ii works." says the labor group
- tha Citv Council emphatlcalIy.
!" 1S Ia INST as emphatically the oppos-
- H+;ew voiced by Mayor ANDERSON
the city's first Farmer-LaOol ot11o4
e'@Tf'T @Tf we issue bonds for public 2if WoIkS
ua imperil our funds Tor oirecI III ~, ~,
It is impossible to give WoTk W oonserve on We
p'IarI, rossibIe dollar to feed the hungry.
Me nrohablv will have money enotgn
Cor that But by no stretcn Oh tiie
i,nooination ~ can it be said there Is
e1o1Ich public money to supply "oiA
for all who need IT. ,.o,,, rooiro for
THAT controversy has been raging toi
months and is no nearer soluHi!toted solu.tott
Gay than when it was flrst pIecipI1.SdtIIo 1doIa
hv aldermanic attack on the u.l0
syystern that pauperizes men ana oe-
SSon sSsve.l +heno Of self-respect." as these
ppfacials characterize the public rehel
plan. ~ooro~, calling for
evnenditllre Of S4.225000 was proposed
asa means Of taking men out Oh tn0
headline" This was subjected 10 I'M
mediate attack by the mayor ana
niti7ens, Committee appointed by the
they pointed out that the Borrowing
mower of the city, basEd upon lo per
cent of the assessed valuation OF prop
ertv is limited to s6.oo0,oo0 up to the
e'i1 'B,,t nj said the Citizens Committee,
rith tbe mayor concurring, relief de-
mands alone for this year and next
will anproximate S40000OO. Inc re-
,o,ai,,Ser VIZ Ser- 60 600 600. would fall far
short of the sum necessary to hnance
the proposed make-work program.
The CITY Council at its session OF
.July % voted to ask the estimate noaro
for another s250.00 for poor rehet LOT
1892 and if the estimate board ap-
r1royes the cityS bond margin VIII O0
further reduced by that amount
Showdown Coming.
How the controversy will end, how
ever NAV be known shortly Events
are shaping themselves for a show
down" on this controversial spojecI VI
"reljef or work" within the next lew
days. - 49, ,rraot
nrcducing areas and Minneapolis is one
Of the great distributing centers OF the
Notior,s food products. AS they are