AMERICAN TRADE.

Hokitika Guardian, 5 November 1925, Page 4

AMERICAN TRADE.

A ROOM DEVELOPED

In spite of all the gloomy forecasts that tile amiv'.ing prosperity of America could mil possibly last, there seem? In he no reaction in the intense trade activity which has marked the last lew vears, and no suggestion has come torward to explain the actual cause ol this homo, without which explanation il is impossible to estimate whether it is merely a bubble which must i.'ievit;iHlv hurst, or an era of unexampled prosperity which has a reasonai.de chance of surviving Ihe minor lluctuations to which all departments are al times subjected.

Rv the San Francisco mail this week it is stated that during the last week in August there were 1.121, l.'ifi railroad curs loaded in the United States. This return is always regarded as the smest liarnmeter ot actual trade passing, and it is staled that this is the heaviest railroad business for one week achieved. The main significance in this amazing record is that the peak in (lie freight movement is not usually reached until October, when grain in large quantiles is on its way to the market. This fact shows the general expansion ol business that is taking place, and ihei'c are clear indications that it will continue for the remainder of the year. Practically every barometer, such as hank clearings, mail Cider bouse sales. Customs receipts and building permits, corroborates the belief that times are good. AVhile the level prices has risen slightly during the past few months, there is evidence of speculative buying, and merchandise stocks are apparently maintained on a basis of immediate needs. The most vital feature of the whole situation is the crop outlook which has assumed a clearer aspect with the arrival of harvest time. According to the Department of Agriculture, cereals suffered by the hot dry weather of .August, and instead of a bumper crop the yield of grain will not he very much more than that of last year. Shortage of wheat, production is not so pronounced as was at first believed, the present estimate being 700,000.000 bushels, but even now il is well below the 873.000,000 bushels of last year. Cotton has been injured by exceedingly drv weather in certain pari- <,i llie South, to the detriment of the growers and all who wear cotton garments. Generally speaking, however, and without too inucli consideration of details, those who rely noon agriculture for their means of living are faring better than for several years past. AA'hal. they »<■ 11 is bringing better prices than formerly, and wlnii they huv with lew exceptions is cheaper.

The American Rank, San Francisco, states that the debt of the United States Government to its own people represented by Liberty bonds and Treasury certificates is being steadily cut down at the rate of nearly a thousand million dollars a year. It; is considered by some people that the reduction should go mure slowly, that the people of ibis generation should not he called upon to pay the entire hill for their participation in the late war, hut something should he left for the taxpayers of the future. AA'hetlier or not this thought is in the mind of Secretary Al e I lan, lie is preparing - to recommend to Congress a revision of taxpaying citizens of some 300 to 400 million dollars a year. Autumn demands have recently stiffened the money market a little, but there is no likelihood of any scarcity of funds, either for current needs or permanent investment. A summary recently published by the Federal Reserve Board discloses the fact that on June 30 the banks in the system held aggregate deposits of 32,420 million dollars, or about 10 per cent above the combined figures of a vear earlier.