Salt Lake Telegram | 1921-05-12 | Page 10 | Entire Situation Improving

THURSDAY EVENING 1921 1921 Entire Situation Improving I By Ira C. C Tichenor HE fact as previously announced that the federal reserve bank hank of Atlanta has made a reduction in its rediscount rate from fromI I 7 to 6 per cent leaving only two of the twelve federal reserve banks hanks ftp 0 continue the 7 per cent rate is added proof that the conditions generally throughout the country are Improving The reduction of ot the rate by the Atlanta bank Is surprising In view of ot Ithe tte he conditions which have prevailed In the South for some for some time as a result of the extreme drop In the price of ot cotton and which caused many planters ftp to o refrain retrain from sending their product to market and thereby compelling the banks to carry loans that previously had been seasonably liquidated r That the situation In the South should Improve more rapidly than It has Tn hl n some sections of th the North as a Indicated by the retention of ot the 7 per perc percent c cent nt rate by te Ue federal reserve bank In Minneapolis which with Dallas Dala are the he two federal federal banks which have not as yet vet announced a reduction on wa was yet quite unexpected It I Is confidently expected however howe that the Minneapolis bank soon oon will wl follow the example of ot the he other regional Institutions leaving leavins- only Dallas Dalas to 9 hold to the extreme high rate for a time at least There can be no doubt that that the the general l lowering o of ot bank rates will wi result In a marked Improvement ement In the business situation In fact it St Is declared by bankers that the reduction was made for tor the the- purpose of ot pro- pro x Industry and to lessen the burden of business Interests At At the same time the warning waring was voiced that the banking Interests would woud not countenance a repetition of ot excessive borrowing for tor speculative purposes In taking this stand the financial Interests in effect declare that phoney money is available for necessary business purposes but that the brake will to oper operate te as to nonessential borrowing