Imperial Valley press., 1932-01-06
BANK SUMMARY INDICATES 1892
MAY BRING BETTER CONDITIONS

Unusually heavy rainfall in
Southern California during Decem-
ber constitutes a most favorable
economic development with which
to close 1881 and begin the new
year. Notwithstanding the rich and
varied resources of this region, agri-
culture is today, as it has been in
the past, the primary source OF
local income. The importance of
crop returns to the people of CAL
ifornia is clearly indicated by the
fact that this state ranked first
in the United States during 1881
in the aggregate value of farm pro-
ducts. Having less than one-twen-
tieth of the country'S population,
the total value of agricultural COM
modities grown in this state IN
1891 amounted to more than $3l6,-
600 600, or approximately one-thir-
teenth of the total for the nation.
The bountiful rainfall of recent
weeks has not only reduced irriga-
ton costs in a large measure, but
has augmented the reserve water
supplies upon which agriculture is
dependent. 1t is interesting to note,
by way of contrast, that the de-
cline in the farm value OF crops in
1881 from the 1880 total was only
206 per cent in California, while
the percentage for the entire Unit
ed States was 29.l.
This is the Introductory paragraph
of the monthly summary of bus
mess conditions in the Pacific
Southwest territory compiled by the
department of research and service
of the Security First National Bank
of Los Angeles, and released for
publication today. The summary
continues in part:
The extent to which trade actiy-
f ity was stimulated by the usual
gift buying prior to Christmas is
reflected in an increase of 1913 pei
cent in the bank debit figures fol
eight leading cities in the southern
part of the state in the four weeks
ended December %, over the pre-
/ ceding period OF similar length
Reports from a number OF com
munitieS in this section confirm the
fact that the character of purchas'
ing was considerably different from
that of previous years. The mos
conspicuous changes were observed
in the tendency for unit purchase:
to be of smaller value and for ne
cessities and practical gifts to bt
substituted for noneSsential items.
It is customary at this season o.
the year TO review the events o.
the u months that have just passed
and TO look forward in an effort Il
foresee what the future holds IL
store. A period of approximately
two and one-half years has nov
ELAPSED since the start of the de
cline in business activity in tht
summer OF 1929 At the end o
1880, it was thought by many tina
the worst of the depression h a
most certainly been passed, ant
that 1881 would bring definite
signs of improvement. The bus
mess prophets of year ago com
pared the characteristics Of tn
previous 18 months with those o
the earlier depressions of the pres
ent century and, reasoning from
these precedentS, came TO the con
clusion that recovery was due to ar
rive during the new year. Conf
dence in the future was though
to be the principal thing that wa
lacking, and it was felt in man.
quarters that, If business m l
would take courage, condition
would Immediately improve.
The experiences of the year hay
shown that these we'll intended
statments did not give sufficin
weight to many factors. The con
fusion created by t h e decline o
about 80 per cent in Wholesal
prices since 1929, is now generall
realized, and some leading econ
omists consider this factor to b
the basic cause of our difficulties
1t has neceSsitated a readjustmen
of the entire credit and financia
structure to a dollar OF enhance,
value. Since this process of estab
fishing a new equilibrium through
out the complex economic organi
zation of society has occupied on
attention throughout 1881, it is nc
surprising that the close of tn
year is not only welcomed. but ac
companied by the expectation tina
more favorable developments wi
be witnessed in 1882.
The occurrences of recent month
nave convinced m any observer
that the current situation is nc
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