merican Bankers Association 
 
 ECONOMIC SURVEY 
 
 
 Third-Economic Survey 
 Reported to the Executive Council 
 of the American Bankers Association 
 at White Sulphur Springs, W. Va., May 11, 1922 
 by the Economic Policy Commission 
 M. A. Traylor, Chairman 
 
 
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 Jvn'35't. 
 
 PREFACE 
 
 The Economic Policy Commission of the American Bfeu/ityefs yAsso- 
 ciation undertook to make a survey of the conditions in the whole 
 country along the lines laid down last year by Mr. John S. Dowm* 
 then President of the Association. The Commission sent oWt irf March 
 about 1,500 questionnaires to members and a few others. A copy of 
 this questionnaire appears below. In addition, the members of the 
 Executive Council of the Association and the secretaries of the state 
 associations were requested to send questionnaires to such other men 
 in their respective states as might be able to furnish information of 
 value. 
 
 Of the 1,500 questionnaires sent out, 738 answers were received 
 in time to be used for the compilation of the report. This survey will 
 derive its chief interest from the fact that it shows more or less correctly 
 what a large number of our members and friends believed to be the 
 economic situation of the country on and about April 1. It must, 
 therefore, be remembered that the resultant picture of conditions in 
 this country may not be an accurate presentation of the momentary 
 situation, for much of the improvement which was in progress at the 
 time when the answers were received has continued so that the situation 
 of the country is now probably better than it was on April 1. Those 
 sufficiently interested to peruse the summaries of the answers received 
 from each state and compiled by the Secretary of the Commission will 
 gain a fairly accurate picture of the consensus of opinion. 
 
 A few general and striking facts gleaned from this survey were 
 given in the report of the Economic Policy Commission submitted to 
 the meeting of the Executive Council of the Association at White 
 Sulphur Springs on May 11, 1922. 
 
 “It is evident from the answers received to the questionnaire that 
 there is a much greater feeling of hopefulness in the country than 
 there was when Mr. Drum made his last survey. Production in most 
 lines is again stimulated and sales are increasing, so that manufacturers 
 as well as the farmers have little surplus on hand. In other words, 
 liquidation has been completed in nearly all lines of activity throughout 
 the country, and costs have decreased, except in the items of labor, 
 transportation and taxation. Even as regards labor, there has 
 undoubtedly been a considerable lowering of prices, especially as 
 regards agricultural labor. This is evidenced by the fall of prices, 
 both wholesale and retail, which are now considerably lower than they 
 were two years ago and in some instances have already begun to recover 
 slowly. The work of the War Finance Corporation has undoubtedly 
 been of great assistance to many parts of the country, though this fact 
 seems to be appreciated by only a limited circle. In regard to the rail¬ 
 roads, the attitude of those answering is an entirely reasonable one. 
 
It is felt that freight rates are too high, but at the same time the situation 
 of the railroads themselves is appreciated to an extent that would not 
 have seemed possible a few years ago. Much as everybody wishes 
 freight rates to faevreduced, it is realized that this cannot be done until 
 th£ railroads themselves are able to cut down their operating expenses 
 sufficiently to earn a reasonable return upon their investment. In the 
 answers to the more specifically financial sections of the survey, a 
 curious phenomenon is the fact that there is apparently little interest 
 in the whole tariff question. When it is considered how bitter the 
 contests used to be between advocates of a high and a low tariff, it is 
 surprising to note that, while, naturally, each section of the country 
 desires that that be done which will favor its interests most, neverthe¬ 
 less the general sentiment seems to be that the whole matter is not one 
 of primary importance. It may be that in some respects the tariff 
 question is almost more important now than it ever was; but in this 
 estimate of what the economic survey means, the Commission naturally 
 is presenting not its own views, but an analysis of what seems to be the 
 consensus of opinion of those answering the questionnaire. Everyone 
 feels that the worst is over, that interest rates will continue to fall, 
 that business failures for the rest of the year will not be unusually 
 large. There is little spirit of pessimism and not much of optimism, but 
 there seems to be a determination to get down to work and pull the cart 
 out of the mire. It is realized that the foreign situation leaves much 
 to be desired, and that full prosperity cannot return to us until Europe 
 decides to forget its quarrels and get down to business. 
 
 “Personally I have derived at least this great consolation from 
 going over the answers to these questionnaires, that so many of our 
 members have come to realize, as Mr. Drum expressed it in his first 
 survey of last year, that it is ‘common sense and a knowledge of facts, 
 coupled with clear vision, which must guide the conduct of every one of 
 us in his private business affairs.’ People have come to realize that 
 conditions cannot be improved by simply shouting all together, ‘Good 
 times are coming,’ but it is also felt that the country is fundamentally 
 so sound that there is no need of despairing as to the future.” 
 
 In conclusion, I wish to express again on behalf of the Economic 
 Policy Commission the deep sense of gratitude which we feel toward 
 all those who took the trouble to fill out the questionnaires for the 
 Economic Survey. Everyone who has ever done work of this nature 
 realizes the difficulties of the task and how much thought and labor 
 must be given to an intelligent summary of economic conditions in one’s 
 district. The work both last year and this could not have been done 
 at all without self-sacrificing effort on the part of the members and 
 friends of the Association, as well as the members of this Council 
 and the secretaries of the various state associations. 
 
 May 15, 1922. M. A. Traylor, Chairman. 
 
Copy of Questionnaire 
 American Bankers Association 
 
 ECONOMIC SURVEY, APRIL, 1922 
 
 The following questions are intended to apply primarily to condi¬ 
 tions in that part of your state with which you are particularly familiar. 
 If you are a city banker having little contact with agricultural condi¬ 
 tions, disregard the questions bearing on these, or if you are a country 
 banker having little contact with industrial and general commercial 
 conditions, ignore the questions referring to them. Please designate 
 the part of your state that your answers cover: 
 
 INDUSTRIAL 
 
 Note —Questions in this group are intended to apply to manufac¬ 
 turing of all kinds and to the production of all commodities except 
 natural products. 
 
 1. What are the principal industries of your part of the state? 
 
 2. What are its principal manufactured products ? Please name these 
 products in the order of their importance. 
 
 3. How do the quantities in which they are being produced now com¬ 
 pare with quantities produced in previous periods, say last year, 
 two years ago, and 1913? 
 
 4. Is there still any surplus of manufactured goods, over and above 
 normal supplies, in the hands of manufacturers? 
 
 5. How do the costs of production in manufacturing compare with 
 the costs of production of previous periods, say last year, two 
 years ago, and 1913? 
 
 6. Has there been any decrease or increase in the cost of: 
 
 (a) Labor (d) Money 
 
 (b) Materials (e) Taxation 
 
 (c) Transportation (f) Construction. 
 
 7. Has there been any change in the wholesale prices of manufac¬ 
 tured goods produced in your part of the state within the last year 
 or within the last two years? If possible, give percentages. 
 
 3 
 
8. Has there been any change in the retail prices in your part of the 
 state within the last year or within the last two years? If possible, 
 give percentages. 
 
 NATURAL PRODUCTS 
 
 Note—Questions in this group are intended to apply to agri¬ 
 culture, mining, lumber, cattle and cattle products, sheep and wool— 
 in short, all except manufactured goods. 
 
 9. What are the principal natural products of your part of the state? 
 Please name these products in the order of their impoftance. 
 
 10. How do the quantities in which they are being produced com¬ 
 pare with the quantities of previous periods, say last year, two years 
 ago, and 1913? 
 
 11. Is there a surplus of natural products in the hands of producers? 
 If so, what kinds? 
 
 12. How do the costs of production compare with the costs of pro¬ 
 duction of previous periods, say last year, two years ago, and 1913? 
 
 13. Has there been any decrease or increase in the cost of: 
 
 (a) Labor 
 
 (b) Materials 
 
 (c) Transportation 
 
 (d) Money 
 
 (e) Taxation 
 
 (f) Construction. 
 
 14. Has there been any change in wholesale prices of natural prod¬ 
 ucts in your part of the state within the last year or within the 
 
 last two years? If possible, give percentages. 
 
 15. Has there been any change in retail prices of natural products 
 in your part of the state within the last year or within the last 
 two years? If possible, give percentages. 
 
 16. Has there been much use in your part of the state of the 
 
 facilities placed at the disposal of agriculturists by the War 
 
 Finance Corporation? If so, to what extent? 
 
 RAILROADS 
 
 17. What is the transportation situation in your state? 
 
 18. Is it felt that freight rates are excessive, and if so, to what 
 extent? 
 
 4 
 
19. Are there any proposals in regard to the rehabilitation of the 
 railroads which meet with general approval in your part of the 
 state ? 
 
 20. What, in general, is the attitude towards railroads in your part 
 of the state on the part of 
 
 (a) Bankers 
 
 (b) Shippers 
 
 (c) General Public. 
 
 FINANCIAL 
 
 21. Is sentiment in your state in favor of or opposed to the Soldiers’ 
 Bonus Bill? 
 
 22. If in favor, how is it proposed to raise the sums which will be 
 needed ? 
 
 23. Is sentiment in your state in favor of or opposed to a tariff, 
 the rates of which are to be based on the principle of American 
 Valuation? 
 
 24. Is the sentiment in favor of a high tariff or a low tariff? 
 
 25. Is there any sentiment in your state favoring a constitutional 
 amendment to eliminate tax exempt securities? 
 
 26. Have borrowers any difficulty in obtaining credits from the banks 
 in your part of the state? 
 
 27. Have interest rates increased or decreased, and to what extent? 
 
 28. What do you expect the course of interest rates to be for the 
 rest of 1922? 
 
 29. Have business failures in your part of the state been increasing 
 or decreasing of late? 
 
 30. Is it expected that there will be an unusually large number of 
 failures during the rest of this year, or is it believed that busi¬ 
 nesses that have survived so far are now in satisfactory shape? 
 
 31. What is the prevailing sentiment in your part of the state regard¬ 
 ing the so-called budget system adopted by the Federal 
 Government? 
 
 5 
 
32. Is it believed that the present law accomplishes all that is needed, 
 or is it believed that an amendment to the Federal Constitution 
 would be desirable which would give the President the power 
 to submit to Congress a reasoned and balanced budget which 
 Congress would approve or reject as a whole, somewhat as is 
 done under the European parliamentary form of government? 
 
 33. Have you any other suggestions which under the existing law 
 or by amendment to the Constitution would make possible a more 
 efficient financial administration on the part of the Federal 
 Government ? 
 
 GENERAL 
 
 34. Various commodities, both raw materials and manufactured goods, 
 have responded in varying degrees to the readjustment of costs and 
 prices that has been in progress since last fall. Cotton and copper, 
 for instance, have fallen in price to a far greater extent than 
 most kinds of manufactured goods. Ultimately, of course, equi¬ 
 librium will be restored and prices and costs harmonized on a new 
 level, which, of course will not necessarily be the pre-war basis. 
 What conditions, in your opinion, are helping to bring about a 
 speedy readjustment on this new level? 
 
 35. What conditions, in your opinion, are holding back speedy 
 readjustment? 
 
 36. Have foreign sales of raw materials and manufactured goods 
 
 produced in your part of the state decreased or increased in the 
 last year ? Why ? 
 
 37. Have they decreased or increased in the last six months? 
 
 Why? 
 
 REMARKS 
 
 Name. . 
 Address 
 
 Date 
 
 6 
 
Summaries of Conditions in the 
 Various States 
 
 ALABAMA 
 
 According to the reports received, the situation in this state shows 
 some improvement over last year, both in production and general 
 business situation. As regards the former, in the case of manufactured 
 goods the best observers seem to believe that the production was 
 about 10 per cent, better than last year, though 30 per cent, less than 
 two years ago and 10 per cent, less than in the year 1913. On the 
 other hand, surplus stocks have been gradually diminishing in nearly all 
 lines, and while taxation, as elsewhere, is higher, other costs have 
 come down so that a fair average would probably show that the cost 
 of production is 5 per cent, less than last year, 15 per cent, less than 
 two years ago, while it is 40 per cent, greater than it was in 1913. 
 This reduction in cost of production is reflected in the drop of prices, 
 both wholesale and retail, though different observers naturally give 
 very different estimates as to details, varying anywhere from 5 per cent, 
 to 60 per cent. Farm production of all kinds has been recently 
 increasing, due in this case to the return of much labor which during 
 the boom period had drifted away. There is a large surplus of turpen¬ 
 tine and rosin on hand, but only a little cotton. The cost of production 
 is evidently about the same as it was in 1913, but prices have fallen to 
 one-half of what they were two years ago and are probably less than 
 they were in 1913. There has been very little use made of the 
 facilities of the War Finance Corporation. 
 
 The railroad situation is viewed in Alabama with considerable 
 equanimity, though it is realized that freight rates are at least 25 per 
 cent, too high. The sentiment in the state, at least among the banking 
 and general business interests, is opposed to the Bonus Bill. The 
 state for political reasons is opposed to any increase in tariff, which, 
 however, is contradicted by the remarks of some writers who state 
 that there is a sentiment in favor of the American Valuation Plan. 
 Money has been easy and it is generally expected that interest rates 
 will continue to decrease unless the Bonus Bill should become law 
 and require large and immediate expenditures of capital. There is 
 apparently little interest even in banking circles in such questions 
 as relate to tax exempt securities and a proper budget system for 
 the Federal Government. Foreign sales have been somewhat on the 
 increase chiefly due to larger shipments to Cuba and South American 
 countries. 
 
 7 
 
ARIZONA 
 
 Arizona is not a manufacturing state and everything turns upon 
 copper, cattle, long and short staple cotton, alfalfa seed and hay. The 
 copper situation continues to be bad. There are only about two com¬ 
 panies which produced anything last year, though one mine is starting 
 on a small scale and some small smelter improvements and enlarge¬ 
 ments have been undertaken. 1921 was a bad year for cattlemen and 
 sheepmen, the ranges being dry and the weather cold. There is a 
 surplus of nearly everything which is produced in Arizona, though 
 the percentages given vary considerably. While it is costing less to 
 produce copper this year than it did in 1920 and 1921, it is very much 
 higher than in 1913. Copper increased in price 8 per cent, since last 
 year, but is 20 per cent, less than two years ago. Cattle and sheep men 
 are paying their help very much less, one observer giving the decrease 
 in wages as being as much as 66% per cent, from what it was two 
 years ago. The price for cattle has increased slightly since last year 
 but is perhaps 35 per cent, less than two years ago. The agriculturists 
 proper have made very little use of the War Finance Corporation, but 
 some cattle loan companies have obtained money. 
 
 It is felt in general that freight rates are perhaps 40 per cent, too 
 high, but on the whole Arizona is not complaining of its railroad 
 situation. There \s opposition to the Bonus Bill on the part of 
 the larger business and financial interests, but some observers admit 
 that very likely if there were to be a general vote a majority would be 
 in favor of the present Bonus Bill. Sentiment seems to be strongly 
 in favor of a high tariff, and there is some belief that there should be a 
 constitutional amendment to do away with tax-exempt securities, 
 though evidently there is not much interest in the question, nor in the 
 matter of a Federal budget. All observers agree that money is tight 
 and that interest is the same as it has been for some years and is likely 
 to remain so. There have been few business failures and not many 
 more are expected. There has been a slight increase in the sale of 
 copper to foreign countries within the last year. 
 
 ARKANSAS 
 
 The production of lumber and related industries seems to have 
 fallen off about 25 per cent, since 1913, though some observers place 
 it even higher. The costs of production are about half of what they 
 were two years ago and about the same as in 1913, the reduction being 
 due chiefly to decrease in the cost of labor and material. Both whole¬ 
 sale and retail prices seem to have followed suit, though to what extent 
 is a matter of considerable difference of opinion. The state last year 
 had the smallest acreage of cotton in many years, but it is expected 
 
 8 
 
that more will be planted in 1922. In spite of this, there is a surplus 
 of cotton on hand, as also of corn, which, as one observer says, is due to 
 the fact that while Europe wants it she cannot pay for it. The produc¬ 
 tion costs of raw materials are estimated to be about 25 per cent, higher 
 than in 1913, but considerably less than two years ago. Apparently, the 
 only use made of the facilities of the War Finance Corporation was on 
 the part of a few cotton farmers. 
 
 It is generally felt that railroad rates are too high, and labor costs 
 are blamed for this. There is much opposition to the Bonus Bill and to 
 a high tariff. There is some expression in favor of a constitutional 
 amendment to eliminate tax-exempt securities, but fundamentally there 
 is little interest in this question, and even less in the question of a 
 Federal budget system. Interest rates have come down about 2 per 
 cent, and are now around 7 per cent, and 8 per cent., but it is not 
 expected that they will go much lower. In fact, country banks may 
 charge more. There have been few failures. Whether these will 
 increase depends entirely upon the crops. 
 
 CALIFORNIA 
 
 California has such a variety of industries and raw products that 
 it is difficult to make any general statements. In general, however, 
 there has been an increase of production in oil, while most agricultural 
 products have shown a decrease over two years ago and also over 
 1913. Labor costs are lower than they were two years ago, but higher 
 than in 1913. Wholesale and retail prices have followed more or less 
 the general trend. There has been some use of the facilities of the 
 War Finance Corporation, though not all observers make note of this. 
 In some parts of California there has been considerable loss due to 
 frost, but there have been few failures and it is not expected that there 
 will be many. 
 
 The railroad situation does not seem to affect conditions seriously 
 in California, though there is some complaint that the freight rates 
 for shipment of fruit to eastern points are too high. Labor is said to be 
 unwilling to accept lower wages and this is believed to be one of the 
 causes retarding stabilization. The sentiment in regard to the Soldiers’ 
 Bonus Bill is fairly well expressed by one observer, who makes the fol¬ 
 lowing statement: “The American Legion and their close friends are, 
 of course, in favor of the Bonus Bill. It is hard to obtain any informa¬ 
 tion as to the sentiment of the public in this matter owing to a 
 reluctance on the part of all to show antagonism to the American 
 Legion, but we do know that there is some very strong opposition.” 
 Interest rates are slightly lower than they have been and the banks 
 have been ready to lend money for legitimate enterprises. There 
 
 9 
 
seems to be some real sentiment in California for some plan to eliminate 
 tax-exempt securities. The state as a whole favors a high tariff and 
 American valuation. One observer makes this general remark: 
 “Prices have been too high in the past. Some orchards have yielded 
 as much as $1,000 an acre, but now prices are nearly back to normal, 
 while the farmer still has to pay high prices for everything he buys.” 
 Evidently exports to the Far East have been slightly on the increase 
 within the last year. 
 
 COLORADO 
 
 In Colorado production at present is about 60 per cent, to 70 per 
 cent, of two years ago, but more than 1913, this being brought about 
 by the fact that there are more industries producing. Manufacturing 
 in Colorado is still in its infancy, having started about twenty years 
 ago, and therefore growing yearly. Stocks on hand are small and 
 in the last eighteen months most industries have been working on a 
 strict order basis. Labor in general is lower than in 1919 and 1920, 
 but considerably above what it was in 1913. More or less the same 
 is true of materials. Transportation is higher, as is also taxation. In 
 construction there has been a decrease in most lines, though labor here 
 also shows a slight increase. In general, money is easier and it is 
 expected that rates of interest will continue to be lower. Retail prices, 
 it is said, have been materially reduced within the last year, though 
 they are still above what they were in 1913. In regard to natural 
 products, it is estimated that these are 40 per cent, larger than in 1913, 
 but about 20 per cent, less than last year. Many farmers cut down 
 their operations last year owing to the financial situation and endeav¬ 
 ored to do the work themselves. A decrease in acreage was caused by 
 smaller acreage on older farms, though in some places considerable new 
 acreage was placed under cultivation. There is still a considerable 
 crop of wheat and potatoes in the farmers’ hands, though the wool 
 crop of 1920 and 1921 has been cleaned up. Production costs on the 
 farms, for the reason cited above, are lower than they have been in 
 recent years, but higher than in 1913. The wholesale prices, as well as 
 the retail prices, of raw products show considerable decline. The 
 War Finance Corporation has been largely used and its work has been 
 regarded as very beneficial. 
 
 Freight rates are considered excessive, and the general complaint 
 is well illustrated by one observer, who cites the fact that freight rates 
 for a short haul of twelve miles are the same as for a long haul of 
 four hundred miles. The general mass of people are said to be in 
 favor of the Soldiers’ Bonus Bill, but bankers, business men, com¬ 
 mercial associations and the like, while absolutely solid for the proper 
 
 10 
 
care of disabled and crippled soldiers, do not wish an unlimited bonus 
 without any discrimination. The general sentiment is in favor of a 
 high tariff with American valuation. Failures have been few, and it is 
 not expected that the percentage this year will be above the average. 
 
 One observer gives the following interesting quotation as to the 
 difficulties experienced by business from too much interference by the 
 government, which seems to be regarded as one of the causes for 
 the retarding of business: “ ‘A little broom-handle factory in a western 
 state was visited by seventeen state and federal inspectors inside of 
 three months. All rode in motor cars paid for by the government, and 
 all burned gas and had all their expenses paid by the government.’ So 
 long as this policy remains on the increase just so long will we be 
 burdened by higher taxes and less prosperity.” 
 
 CONNECTICUT 
 
 Connecticut is largely a manufacturing state, its big money crop 
 being tobacco. In manufacturing the quantities turned out are larger 
 than in 1921, but less than in 1920, and in most lines less than in 1913. 
 There is not much surplus in the hands of the manufacturers. While 
 costs have decreased since 1920 and 1921, they are not back to the 1913 
 level as yet. Labor costs are said to be 150 per cent, above those of 
 1913, materials 100 per cent, higher and prices of goods are said to be 
 still about 100 per cent, above those prevailing in 1913. There is little 
 surplus of raw materials except tobacco, of which the price advanced 
 very decidedly between 1913 and 1920, but most of the 1921 crop is 
 still in the hands of the farmers, and the prices are so low that they are 
 practically ruinous to the producers. According to all reports, little 
 use has been made of the facilities of the War Finance Corporation. 
 The cost of production of raw materials is about 20 per cent, lower 
 than two years ago, but much higher than in 1913, owing to the in¬ 
 creased cost of labor and fertilizing materials. 
 
 Interest rates are down 1 to 1J4 per cent., and little change is 
 expected in 1922. Failures have increased recently and more are 
 expected. In regard to tax-exempt securities, one observer writes: 
 “This question has had much consideration in this section, and I 
 believe that the feeling is growing that, taking everything into con¬ 
 sideration, it would be better if the states and municipalities would 
 eliminate tax-exempt securities. Personally I believe the situation, 
 both as to federal, state and municipal affairs, would be very much 
 improved by legislation which would prevent the issuance of tax-exempt 
 securities, and I am rather inclined to believe that in this state such 
 legislation may be brought about within a few years.” 
 
 In regard to the tariff, the same writer makes the following state¬ 
 ment : “As the state of Connecticut is nominally Republican, the gen¬ 
 ii 
 
eral feeling, in my judgment, is in favor of a tariff which will protect 
 our manufacturing interests, but which will not go to such an extreme 
 as to over-protect them, thereby bringing a burden upon the people 
 purchasing manufactured products. I cannot feel that the tariff ques¬ 
 tion can be approached from an unselfish point of view, as it is human 
 nature to attempt to secure the best possible terms for one’s own inter¬ 
 ests, which naturally leads the manufacturer to incline towards a very 
 high tariff and the purchaser to an unduly low tariff. Again, I feel 
 that the ideas of the general public as to the tariff cut very little figure. 
 It seems to be a political matter at Washingon, and any decision is 
 perhaps subject to the strongest influence that may be brought to bear, 
 regardless of the actual existing conditions.” The railroad situation, in 
 spite of increased freight rates, does not seem to arouse much discon¬ 
 tent. In general it is felt that the railroads cannot lower rates very 
 much until their operating expenses come down considerably. 
 
 DELAWARE 
 
 In Delaware there is very little surplus of any kind of manu¬ 
 factured products on hand. The cost of production is said to be less 
 than two years ago, but higher than 1913. Most items have decreased, 
 except taxation and cost of transportation. The War Finance Cor¬ 
 poration has been very little used. Business interests oppose the Sol¬ 
 diers’ Bonus, and on the question of the tariff there is a sharp division 
 between manufacturers and other interests. In regard to railroad rates, 
 one observer says: “Not high enough to give proper revenue to the 
 railoads, but too high to allow a proper resumption of business.” The 
 opinion is expressed that conditions holding back speedy adjustment 
 are “delay in proper legislation as regards adjustment of the foreign 
 debt and the tariff bills; lack of buying ability of the foreign countries; 
 fear of increased taxation due to bonus and other populistic legislation 
 pending in Washington.” 
 
 In regard to the foreign situation, the following opinion is ex¬ 
 pressed: “There has been possibly a slight, very slight, increase in 
 foreign sales in the last six months. Glazed kid was one of our chief 
 exports, but there is very little now. The export tax on hides from 
 India is one of the chief obstacles outside of the poor buying ability 
 of the foreign countries.” 
 
 DISTRICT OF COLUMBIA 
 
 There is little, naturally, to be said about conditions in the District 
 of Columbia, since it is primarily a purely residential region with little 
 industry or agriculture. Freight rates are considered excessive. In¬ 
 terest rates have come down and failures have not been numerous or 
 
 12 
 
serious. In general, business in the District of Columbia is in a very 
 healthy condition. The building industry is especially active; all of the 
 local mechanics of the building trades being steadily employed, also a 
 great many mechanics from other cities who have been attracted here 
 on account of the building activity. All of the mechanics in the building 
 industry are still receiving wartime wages. The wages of the common 
 laborers have been reduced about 25 per cent. 
 
 FLORIDA 
 
 Most of the industries in Florida seem to have been hard hit by 
 the general depression, except in the case of the citrus fruits which 
 show good returns owing to the frost in California. A very large 
 surplus of phosphate is still on hand, as this business, it is said, 
 “cannot revive until foreign exchange rates materially improve.” 
 In other lines, such as lumber, naval stores, and cigars, it is said 
 that the surplus is not large because the producers were compelled 
 to liquidate even though at a great sacrifice. There evidently is con¬ 
 siderable feeling against the railroads, especially in the western part 
 of the state. The facilities of the War Finance Corporation have 
 not been used to any extent. Interest rates are around 8 per cent, 
 and 10 per cent., though the tendency is toward lower rates. Failures 
 have been somewhat on the increase. In regard to the Bonus Bill, 
 one observer states that not even the soldiers are enthusiastic about 
 its provisions and all other interests are opposed. A writer from 
 Western Florida states that his section of the country is prostrate, 
 though his view is that south Florida has as yet been untouched by 
 the depression. 
 
 GEORGIA 
 
 The production of manufactured goods has increased except along 
 those lines dependent upon cotton seed oil. It is said that costs of 
 production are less than they were a year ago or two years ago and 
 about the same as in 1913. Both wholesale and retail prices have 
 followed the same trend. As regards raw products, there has been 
 considerable diversification lately so that outside of cotton, agricul¬ 
 tural products show an increase of 15 per cent, over 1920, 30 per cent, 
 over 1919, and 50 per cent, over 1913. Cotton, on the other hand, 
 shows a corresponding decrease, which may mean a considerable 
 reduction in acreage since 1913. Cost of production has increased, 
 which is said to be due to low yields because of boll weevil. In general, 
 prices of raw products have decreased, though lately there has been 
 an increase in the price of cotton. The facilities of the War Finance 
 Corporation have been used somewhat, especially as outside of the 
 
 13 
 
larger centers there is still more or less credit stringency, and liquida¬ 
 tion is continuing. 
 
 In regard to the railroads: “The general view throughout the 
 state is that rates are excessive and have a blighting effect upon 
 the producers, who find themselves separated from markets by trans¬ 
 portation costs. Short lines are in distress, with but few exceptions, 
 having but little business. The public, however, continues sympathetic 
 toward carriers, although the demand for lower rates is steadily 
 growing. The railroads are reporting that they spend a dollar to 
 produce revenue of ninety-seven cents. A state bond issue has been 
 suggested recently for the purchase outright of certain important 
 lines in distress. A mass meeting of citizens has been recently 
 suggested to consider the welfare of short lines. No definite movement 
 under way to rehabilitate.” 
 
 IDAHO 
 
 Idaho has practically no manufacturing industries and the reports 
 received covered only the agricultural sections of the state. In 
 these there were little surplus stocks, cattle being scarce. It is said 
 that in general costs were about 20 per cent, less than last year, 40 
 per cent, less than two years ago, but 15 per cent, more than 1913. 
 From the west central part of the state a report is made to the 
 effect that “Farm labor is now about the same as 1913. About $35 
 to $55 per month per hand with keep. This is nearly 50 per cent, 
 less than two years ago.” Lower costs have also been brought about 
 by the fact that the farmers are doing their own work. Wholesale 
 and retail prices are both lower than they were a year ago and two 
 years ago. Regarding the War Finance Corporation, there seems to 
 be some complaint in that it is stated that the only class that has 
 received any assistance has been that of the large live stock growers. 
 From southeastern Idaho there is this complaint: “They (The War 
 Finance Corporation) have refused to accept any small loans of less 
 than $2,000.00. This has eliminated all small farmers that have not a 
 large amount of live stock, enough to secure a loan of $2,000.00 or 
 more. It seems as though the War Finance Corporation is only 
 assisting the larger borrowers that are in the live stock business, sheep 
 and cattle.” 
 
 In regard to American Valuation, one observer states, “Very 
 few here understand the principle of American valuation.” In regard 
 to the railway situation, there is much complaint that the rates are 
 too high and at least in some parts of the state the service is 
 inadequate, as witnessed by one observer who says, “It takes three 
 days’ time to go to our county seat, thirteen miles distant, and have 
 any time there.” Interest rates in general have remained about the 
 
 14 
 
same. The Bonus Bill is said to be opposed except by ex-soldiers and 
 their personal friends. 
 
 From the southwestern part has come the following general 
 summary: “Conditions here are excellent. Fruit crop was good, while 
 wheat was sold at less than cost of production. Cattle held over 
 are now selling at eight cents, which was a war time price. Hogs 
 are now back to war prices and a large acreage of lettuce will bring 
 in a large sum from the eastern markets. However, the profits must 
 be made solely on minimum production costs.” 
 
 ILLINOIS 
 
 In Illinois, as in the other states with very diversified industries, 
 it is difficult to summarize conditions. In general, production costs 
 are undoubtedly lower than a year ago and considerably lower than 
 two years ago, though still somewhat above those for 1913. In the 
 manufacturing industries, cost of labor is perhaps one-third lower than 
 last year except in the building trade, where there has been compara¬ 
 tively little reduction. Money is undoubtedly cheaper, but taxation 
 has increased considerably. Wholesale prices are perhaps 20 per cent, 
 less than last year and retail prices have also come down somewhat. 
 From the western part of the state the following information is given: 
 “There is a large surplus of manufactured agricultural implements in 
 the hands of manufacturers. This is much above normal supply. 
 There is considerable surplus in the hands of all other manufacturers 
 in this part of the state. Because of a desire to keep their employees 
 busy many manufacturing plants have operated on stock to a much 
 greater extent than they would normally do.” The surplus in the agri¬ 
 cultural implement industry is due to the depression existing in the 
 farming communities. Much of the surplus of crops has now been 
 marketed, but often at prices which did not bring the farmer any 
 profit. Acreage, however, is pretty normal, and hogs and cattle have 
 increased in number. The farmers and their families have been doing 
 much of the work themselves. This has aided in reducing costs. In 
 the southern part of the state, and in those other parts where coal is 
 mined, the reports indicate that wages of miners have not decreased, 
 and at the time of writing this report a strike has interrupted the whole 
 industry of coal mining. There has been practically no change in either 
 the wholesale or retail price of coal within the last two years. Whole¬ 
 sale prices of farm products are very much reduced from what they 
 were two years ago and retail prices have come down somewhat, though 
 not in the same proportion as wholesale prices. There was consid¬ 
 erable use made of the facilities provided by the War Finance Cor¬ 
 poration. 
 
 There is much complaint about the railroad situation, though in 
 
 15 
 
many quarters it is felt that the railroads themselves can do nothing 
 until the Labor Board permits wages to be reduced, thereby permit¬ 
 ting a reduction in operating- expenses. As regards the Bonus Bill, 
 undoubtedly a majority of the people in the state are for it, though 
 among more intelligent business men and among financial interests in 
 general there is much opposition to a cash bonus. In Chicago and 
 some of the other larger centers of the state there is a very decided 
 sentiment that tax-exempt securities should be eliminated. In regard 
 to the tariff, the general sentiment is in favor of a high tariff, but in 
 regard to American valuation sentiment is divided, the large importers 
 being very much opposed, while some of the manufacturers favor it. 
 In general money has become much easier all over the state and banks 
 have had no difficulty in finding means to finance legitimate enterprises 
 in the cities. In some of the rural districts banks still have a consid¬ 
 erable amount of frozen credits on hand. In the larger centers it is 
 expected that interest rates will continue to decrease slightly during 
 the rest of the year. While business failures have increased somewhat 
 in the last year, it is felt that the worst is over and that those concerns 
 which have lasted until now are likely to weather the storm. From the 
 north central part of the state a report was received which applies 
 probably to most of the manufacturing industries throughout the state: 
 “Exchange conditions interrupted foreign trade with some of our local 
 factories some two or three years ago and since that time it has not 
 been resumed.” 
 
 INDIANA 
 
 In Indiana there is much diversification and it is difficult to make 
 statements bearing upon all parts of the state. As regards the steel 
 industry in the northwestern part of the state, it is said that the pro¬ 
 duction is about 75 per cent, of 1920, but equal to that of 1913. In 
 regard to other manufactured products in other parts of the state, the 
 statement is made that the production is about 50 per cent, greater 
 than last year, but 25 per cent, less than two years ago. Costs in 
 general seem to be still above those of 1913, though they have decreased 
 somewhat in the last years. Wholesale prices seem to be down 25 per 
 cent, to 40 per cent., while retail prices are reduced about 15 per cent, 
 to 25 per cent. From western Indiana it is reported that the corn crop 
 was much larger than any previous year and there are probably a larger 
 number of breeding hogs than have ever been held before. Cattle on 
 the other hand is not as numerous as in previous years. Farmers 
 figure that they are making a good profit on finished hogs at $10. 
 Farms are being taxed very heavily. Labor costs are somewhat lower. 
 There is a general trend toward lower prices, but rural districts are 
 slow in taking losses. There has been some use of the facilities of 
 the War Finance Corporation. 
 
 16 
 
There are very few expressions of opinion regarding the railroads 
 except one from the central part of the state, in which the following 
 remark appears: “This is a railroad town. They are all drawing 
 large wages, that is, those that are working, about 33 l /s per cent, being 
 furloughed. They do not know the true condition of the railroads and 
 have a foolish idea that rates can be reduced and wages maintained.” 
 In regard to the Bonus Bill, the sentiment is probably well expressed 
 by one observer as “quietly opposed.” According to at least one state¬ 
 ment, the feeling is becoming quite general that tax-exempt securities 
 should be eliminated. “Tax-exempt securities are a very serious 
 menace to the progress and development of our country. Everyone in 
 this locality that can sell his plant, his business or any of his assets is 
 converting them into tax-exempt securities. They feel the burden has 
 become too great.” Money rates are easier. Failures have been in¬ 
 creasing in number. 
 
 IOWA 
 
 In Iowa manufacturers report generally that 1920 was the peak, 
 while 1921 was very hard on all industries and they found it very 
 difficult to make any profit. There has been a general tendency to 
 shut down, with consequent unemployment. In ;regard to agri¬ 
 culture, the chief industry of the state, it is said that the production of 
 grains is about the same as in 1913, about 90 per cent, of 1920, and 
 about the same as in 1921. Cattle, on the other hand, has been 
 reduced about 25 per cent. Hogs are on the - increase, and heavy 
 spring crops are expected in 1922, according to a statement from 
 northwestern Iowa. There is no surplus except corn in cribs, amount¬ 
 ing to about 20 per cent, of the annual crop and oats amounting to 
 about 10 per cent, of the annual crop. “Cost of production will 
 probably be 10 per cent, less than last year, and 30 per cent, less than 
 two years ago. It will probably be 30 to 40 per cent, over the 1913 cost, 
 due to increased cost of labor, farm machinery, taxes, and trans¬ 
 portation.” 
 
 The facilities of the War Finance Corporation were used very 
 extensively. From western Iowa it is reported that the banks are 
 charging 8 per cent, on ordinary counter loans. Six per cent, plus 
 21/2 per cent, commission is charged on loans on farms, provided 
 the land is choice property and the amount asked is not more than 
 $75 an acre. It is expected that these rates will decrease during 
 the year. From northeastern Iowa the following report is made: 
 “We anticipate before 1922 is over that farm mortgage loans will 
 be obtainable at 5y 2 per cent, and possibly less. Little, if any, reduc¬ 
 tion has been made on ordinary commercial loans to local borrowers 
 below the regular 8 per cent, rate, because many of the banks are 
 
 17 
 
still borrowing and all are trying to bring themselves into a stronger 
 financial position.” According to all reports, there is a very strong 1 
 sentiment in favor of the Bonus Bill in Iowa. 
 
 KANSAS 
 
 Kansas shows very little surplus of any kind. The cost of produc¬ 
 tion is probably 25 per cent, less than it was at its peak but still 
 considerably above what it was in 1913. From the southwestern 
 part of the state the following report is received: “There is the 
 poorest prospect in twenty years in the wheat crop. The wheat crop 
 last year was fair but returned a loss to raisers. Coarse grains 
 are abundant, but the cost of gathering and threshing exceeded what 
 could be realized on the sale of the grain, with the result that little 
 was gathered, most of it remaining in the fields for feed for hogs 
 and live stock. In contrast to the low price, or even unmarketability 
 of grain, hogs returned some profit, but the supply in this section was 
 not more than 15 per cent, or 20 per cent, of normal, so that little 
 advantage resulted. The cattle supply has been much depleted, and 
 raisers are still losing money on production costs. Good horses 
 still sell at public sales at from $15 to $50 per head. All products 
 of the farms that can be sold have been disposed of, and there is 
 no surplus in the hands of 90 per cent, of the farmers. Everything 
 they own in the way of live stock, equipment, etc., is mortgaged for 
 more than it would sell for under present conditions, and the farmer’s 
 buying power is limited to what little he can get from the sale of 
 poultry and dairy products. Ground and seasonal conditions are con¬ 
 sidered good for the planting of spring crops, but acreage will be lim¬ 
 ited on account of the inability of farmers to finance operations.” 
 Wholesale and retail prices are probably 25 per cent, less than they 
 were two years ago. The facilities of the War Finance Corporation 
 have been used in a varying degree in different parts of the state. 
 
 The feeling in regard to the Bonus Bill is very much divided, 
 but there seems to be considerable sentiment in favor of getting rid 
 of tax-exempt securities. An observer from the northwestern part 
 of the state reports as follows: “Strong sentiment favors a constitu¬ 
 tional amendment to eliminate tax-exempt securities. This, however, 
 would meet opposition from the agricultural classes, in so far as it 
 relates to bonds of federal and joint stock land banks, which, like 
 the tariff, is another evidence of the selfishness of human beings 
 generally.” 
 
 The rate of interest seems to be about 8 per cent., the same as it 
 has been during recent years, and not much reduction is expected. In 
 the coal region it is reported that except for the strike the price of coal 
 has declined. Sentiment in regard to the tariff finds expression in 
 
 18 
 
the following statement: “We cannot afford to build a wall around 
 the United States if we expect to retain our present position in 
 the world financially.” Banks generally are taking care off the 
 legitimate and pressing needs of customers. 
 
 As regards the railroads, the following sentiment seems to be 
 general throughout the state: “During 1921 the cost of transporting a 
 car of cattle to market has been as much as 10 to 15 per cent, of its 
 gross value; as much as 50 per cent, of the gross value for transporting 
 a car of wheat to the seaboard; and on other commodities the cost 
 of the freight is in proportion, often exceeding the cost of the com¬ 
 modity at point of origin. Cases have been known where sheep or 
 cattle which had to be transported for long distances sold for less 
 at market than the amount of the freight charges, and drafts were 
 drawn back against the shipper for the deficit.” 
 
 KENTUCKY 
 
 In Kentucky manufacturing is of secondary importance. “The 
 northeast section has iron and steel works of considerable importance. 
 Louisville has a good - deal of manufacturing of diversified kinds, 
 of which tobacco is most important, agricultural implements next, 
 and then cotton and woolen products. The towns located on the 
 Ohio River have a number of manufacturing plants of considerable 
 importance. The products manufactured vary greatly, textiles occu¬ 
 pying first position.” As regards raw products, the costs of pro¬ 
 duction are perhaps 10 per cent, less than last year, 30 per cent, less 
 than two years ago, but double what they were in 1913. There is 
 a surplus of corn still on hand, but tobacco stocks have declined. 
 From the central part of the state comes the following report: “There 
 was a decided increase in wholesale price in our principal crop 
 (tobacco) in 1919, a decrease in 1920 and a slight increase in 1921. 
 Hogs, cattle, wheat, and lambs all sold at a decrease in 1921, compared 
 with the previous year, but all show improvement over the past 
 several months.” From the extreme northwest of the state the 
 report in regard to coal is that the average price at mine is now 
 $1.35, in 1921 it was $1.25, while in 1920 it was $6. 
 
 The sentiment in regard to the bonus and the tariff is very 
 much divided. In regard to the railroads the statement is made that 
 while rates should come down it is not expected that they will be 
 lowered without a lowering of railroad wages to compensate. The 
 statement is made in regard to the War Finance Corporation that 
 it placed “ten million dollars at the disposal of our tobacco farmers 
 through their Burley Cooperative Marketing Association. Happily, 
 it was not necessary to utilize any part of the same, as they financed 
 themselves through the assistance of local bankers over the state, 
 
 19 
 
which loans were all repaid in less than 60 days from sales effected 
 for cash.” 
 
 LOUISIANA 
 
 1 he principal industries of the state, ranked according - to the 
 value of their products, are as follows: Sugar, lumber, petroleum, 
 cottonseed oil and cake, rice cleaning and polishing, food prepara¬ 
 tions, ba£s, bakery products, shipbuilding, foundry and machine shops, 
 railroad shops, cigars and cigarettes, coffee roasting and grinding, 
 naval stores. Louisiana had 115 establishments, the value of the 
 annual output of which exceeded $1,000,000. In regard to sugar 
 there were 578,000,000 pounds produced in 1913; 253,000,000 pounds 
 in 1919; and 534,000,000 pounds in 1921. Of cotton the production 
 consisted of 14,093 bales in 1913; 12,424 bales in 1919; and f 13,750 
 bales in 1921. The costs of production were lower than two years 
 ago, but not quite as low as 1913. Labor on farms and plantations 
 went down to 1913 prices, but foodstuffs and implements were still 
 quite high as compared with 1913. Wholesale and retail prices showed 
 a reduction of about 25 per cent, from the peak. Cotton came down 
 from 30 to 16 cents a pound; sugar from 17 to 5 cents a pound; and 
 rice from $10 a bag to $4. The only substantial surplus of materials 
 is in the case of cotton and lumber. The War Finance Corporation 
 lent about $1,000,000 in the state. 
 
 Freight rates are high, “but the complaint is not against the rail¬ 
 roads, as it is realized that the rates must exist to meet the expenses 
 of the railroads. The complaint is against labor boards which subject 
 these roads to labor conditions which are extravagant, uneconomic 
 and ruinous.” There is considerable opposition to the bonus, but if 
 it is to pass the sales tax is favored. The questionnaire sent out to 
 the banks showed that 90 per cent, were in favor of a high tariff 
 based on American valuation. In regard to tax-exempt securities the 
 following statement is made: “As a constitutional question, the state is 
 opposed to yielding this taxing power to the Federal Government. 
 As an economic question, the abuse of the issue of tax-free securities 
 is realized. Some middle course should be possible.” Interest rates in 
 general have decreased from 8 to 6 per cent., and it is expected that 
 they will continue to decrease. There were a number of failures, but 
 these have been decreasing, and it is not expected that there will be 
 an unusual number in the near future. In general exports have de¬ 
 creased, except cotton exports, which have increased within the last 
 year. 
 
 ♦ MAINE 
 
 Production in Maine of manufactured goods is less than in 1913 
 and much less than two years ago. There is a surplus of pulp and cot¬ 
 ton goods. Wholesale prices have come down and costs of production 
 
 20 
 
also. There has been a considerable increase in the production of apples 
 and some increase in potatoes. Of the latter there is still a consid¬ 
 erable stock on hand, and in most of these cases prices have been satis¬ 
 factory. A protective tariff is generally desired. Maine is said to 
 have come through better than most states and is said to have a hopeful 
 outlook. 
 
 MARYLAND 
 
 In Maryland the output of manufactures has declined in 1920, 
 varying in different lines from 10 to 50 per cent. Clothing, phosphates, 
 acids and canning are notably depressed. In general, there are no 
 stocks on hand and, in fact, the opinion is expressed that they would 
 not supply a normal demand. Costs of production are generally lower, 
 except that taxation has increased, the general reduction being about 
 10 per cent, in labor, 20 to 50 per cent, in material costs and 10 to 15 
 per cent, in construction costs. The wholesale prices of nearly all 
 standard lines of manufactured goods, while very irregular, have 
 declined anywhere from 25 to 50 per cent, from peak. Retail prices 
 have not kept pace to the same extent, though they are also on the 
 decline. In regard to agricultural products there is no appreciable 
 difference in quantities, but a very great slump in values. Most of the 
 agricultural products have come on the market due to the farmers’ 
 pressing need for cash. Costs were slightly below those of 1920, but 
 still considerably above those of 1913. According to opinions expressed, 
 there has been little use of the facilities of the War Finance Corporation. 
 
 In regard to the railroads, it is generally recognized that “wages 
 must be reduced, and even more important than that, the union rules 
 so adjusted as to produce effective labor during the time paid for.” 
 The opinion is generally expressed that there is strong opposition to the 
 Soldiers’ Bonus Bill, regardless of the method used for raising the 
 same. There is “no crystallized sentiment in regard to the evil of the 
 tax-exempt securities.” Interest rates have remained steady at 6 per 
 cent., and if there is any change it will be toward a decrease. It is said 
 that the conditions holding back speedy adjustment are exports and 
 imports, which must be restored before normal conditions can return, 
 and heavy taxes, probably unavoidable, are also a large factor. The 
 last six months, however, have shown a steady increase in exports, 
 which is believed to be due to some improvement in the foreign situa¬ 
 tion. 
 
 MASSACHUSETTS 
 
 Massachusetts is almost wholly industrial, her farm products con¬ 
 sisting merely of dairy and fruit products and some lumber, so that the 
 sharp reductions in prices from which agricultural states have suffered 
 have not had much effect on Massachusetts. As regards her manu- 
 
 21 
 
facturecl products, however, there has been considerable slump from 
 two years ago. In the boot and shoe industry the level of production 
 is about the same as in 1913, but probably 25 per cent, less than when it 
 Mjas at the peak. In cotton the present production represents perhaps 
 80 per cent, of the peak, though the industry is more active than it 
 was in 1913. It is said that present curtailment on piece goods is about 
 25 per cent. Woolen and worsted machinery shows a decline from the 
 high point, though slightly above that of 1913. Foundry and machine 
 shop and metal trades are considerably below 1913. Paper pulp and 
 printing also show a falling off. In none of the industries is there 
 much stock on hand. Cost of production has fallen considerably, except 
 in the case of woolens, where there has not been much change since 
 last year. Compared with 1913, labor prices are more than double and 
 wool prices 50 per cent, higher. Wholesale prices have declined any¬ 
 where from 10 to 40 per cent, within the last two years, though in 
 general they are still above those of -1913. 
 
 The following statement is made in regard to the railroads: “The 
 transportation situation is very bad; the New York, New Haven and 
 Hartford Railroad is and has been for some time on the brink of 
 receivership; the Boston and Maine has recently gone through a reor¬ 
 ganization. The successful operation of New England railroads seems 
 to be impossible on the present distribution of through rates.” The 
 Soldiers’ Bonus Bill is opposed by most of the papers and most of the 
 thoughtful people, though, of course, among the soldiers and their 
 friends it finds considerable favor. Interest rates have decreased, the 
 minimum being 5 per cent., and it is expected that they will not decline 
 much below that figure during 1922. The weak situations in the busi¬ 
 ness world are pretty well known, and no unusually large number of 
 failures is expected. Exports have been falling off, owing to a disin¬ 
 clination on the part of foreign customers to buy beyond their actual 
 necessities. 
 
 A very interesting statement comes from the central part of the 
 state in regard to the tariff: “American valuation prevailed very 
 largely when first proposed, but to a great extent opinion has changed 
 to foreign valuation. The difficulty is in administering such a law. 
 In the wool schedule, where shall be found ‘comparable and competi¬ 
 tive American articles,’ exactly corresponding to any foreign imported 
 articles ? A wide and uncertain approximation only is possible, causing 
 general uncertainty and misgiving. However, it is now no longer what 
 eastern manufacturers would like, but what the wild ‘farmer bloc’ in 
 Congress shall dictate. Basing a wool tariff on ‘scoured content’ is 
 worse than American valuation, because it is impossible to know what 
 the scoured content of any lot of wool is. How, then, can any customs 
 official say what portion of 30c. or 33c. shall apply? In New England 
 
 22 
 
the sentiment is for a iow tariff, just high enough to balance the 
 advantage of the foreign producer on account of cheaper labor and 
 manufacturing cost abroad.” 
 
 MICHIGAN 
 
 In Michigan in regard to manufactured products the statement 
 from all parts seems to be that it is about 60 per cent, from the peak. 
 As compared with 1913, of course, the automobile industry has made 
 a great advance, the report from the Detroit district being that the 
 value in 1914 was about $251,000,000 and in 1920 about $1,000,000,000. 
 It was even higher in 1919 than in 1920, but since January 1, 1922, 
 there has been a steady improvement. From the western part of the 
 state it is reported that furniture production at present is about back 
 to where it was in 1913, but less than it was in 1920, though greater 
 than in 1921. In all cases the report is that there is very little 
 surplus of any kind on hand. “The process of liquidation and the 
 scarcity of the necessary funds to finance production are largely re¬ 
 sponsible for this condition.” Costs of production are said to be 45 
 per cent, less than 1921 and 25 per cent, less than 1920, though still 
 about what they were in 1913. Wholesale prices have come down 
 everywhere, estimates varying between 30 per cent, and 50 per cent, 
 depending on the lines, while for retail prices the reduction is given 
 as being between 25 per cent, and 40 per cent, from the highest point. 
 From the southeastern part of the state the report is that the pro¬ 
 duction of raw materials is 25 per cent, below the average but is 
 about the same as it was in 1913. From the northern peninsula it is 
 reported that 60 per cent, of the copper mines have been closed since 
 April 1, 1921, and there is less lumber being cut than two years ago 
 or during 1913. From the eastern part of the state it is reported 
 that there is a surplus of lumber, salt, and coal on hand. Reports are 
 unanimous that there has been practically no use made of the War 
 Finance Corporation as the banks themselves have been able to finance 
 the needs of the farmers. 
 
 Freight rates are regarded as excessive, and sentiment on the 
 Bonus Bill is very much divided. From the southeastern part of thq 
 state one observer reports “there is much loose sentiment in Michigan 
 for a Bonus Bill, but a substantial factor is opposed to it.” No in¬ 
 crease of failures is expected except among the smaller retailers. 
 Borrowers have had no difficulty apparently in obtaining credit in 
 any part of the state for legitimate enterprises, and interest rates have 
 shown a tendency to decrease and are now around 6 per cent, in 
 most parts of the state. Not much is said about the Budget system, 
 though there seems to be considerable sentiment in favor of doing 
 away with tax-exempt securities. 
 
 23 
 
Foreign trade has fallen off to a very marked degree, and the 
 wish is expressed by one observer “that the tariff may be an equitable 
 one tending to increase trade with our foreign neighbors.” As 
 regards American valuation, the sentiment seems to depend on the 
 line of industry predominant in the various parts of the state. The 
 view is expressed even from the central part of the state that a 
 “readjustment of European finances is necessary for the revival of 
 business.” 
 
 MINNESOTA 
 
 In manufactured products, especially flour, it is stated that the 
 quantities are holding up well with almost any previous year. An 
 exception is made in regard to agricultural machinery, “on which de¬ 
 mand has been greatly reduced on account of short crops and depressed 
 prices.” There is a fairly large surplus of agricultural implements 
 on hand, but not of flour. Manufacturing costs are less than two years 
 ago and somewhat less than last year, but are still higher than 1913. 
 There has been some decrease in the cost of labor, but taxation shows 
 a heavy increase and is becoming extremely burdensome. It is said 
 to be a constant drain on capital and reserves and is crippling all 
 business. In manufactured goods the decrease in wholesale prices is 
 said to be about 20 per cent., while retail prices have only come 
 down 10 per cent, to 15 per cent. 
 
 As regards agricultural products, it is supposed that grains 
 will be more plentiful than last year, less than two years ago, and 
 more than in 1913. From the northeastern part of the state it is 
 reported that the production of iron ore in 1921 was about 40 per 
 cent, of the 1920 production, and the production of lumber is also 
 less. Dairy products have been steadily increasing. It is said that 
 there are still some stocks of wheat, corn, and oats in the hands of 
 producers, and lumber is plentiful. There is no surplus of ore, most 
 of the mines being shut down. The wholesale prices of farm products 
 reached a low point last fall but are now gradually rising. Retail 
 prices have followed the general trend but with a spread of six months 
 or more in time. 
 
 In northeastern Minnesota, where there is little farming, the facil¬ 
 ities of the War Finance Corporation have, of course, been little used. 
 For the rest of the state, however, the statement is made that they re¬ 
 lieved the central depositories carrying reserves of country banks but 
 did not afford any direct relief to the farmers as they were already 
 overextended. From the southern part of the state the following 
 report is received: “There is a very much better feeling among the 
 farmers, and the people, generally, as spring approaches, seem to 
 feel that there will be improvement this year. Prices for corn and 
 
 24 
 
hogs have been very satisfactory, but small grain prices are not suf¬ 
 ficient to bring any revenue to come near cost of production. Cattle 
 prices are better than a few months back. The horse market is very 
 poor. There are a great many farmers with a surplus of horses; this 
 is due to the war, as many went into horse raising when the govern¬ 
 ment purchased. Hardware and implements should be cut about 50 
 per cent, to get within reach of the farmer and builder. It is generally 
 thought that there has been wonderful progress made by the party- 
 in power.” 
 
 The railroad situation is regarded as serious and it is believed 
 that there should be a prompt reduction of freight rates from 10 per 
 cent, to 30 per cent, which should become effective this season. From 
 the Minneapolis district, the following report is received: “Probably 
 the majority of voters would favor the Bonus Bill, but the people 
 who do the serious thinking are opposed to it. The soldiers themselves 
 would be better off if the money were not raised by taxation, as it 
 must be, and were left in industries. Manufacturers and business 
 firms cannot increase their facilities for doing- business and thus make 
 more business and give more employment if the best part of their 
 profits, if there are any, must be taken out and reserved continually 
 for taxes. This situation has already gone too far. Merchants through¬ 
 out the territory are getting more hard up, “collections are getting 
 harder and the bankers throughout the country are able to do less for 
 them. A much larger per cent, of the best class of merchants are 
 failing and getting in serious financial shape, and I believe profits 
 taxation is more to blame than is generally supposed.” 
 
 Sentiment, as expressed, seems to be in favor of a high tariff, 
 and it is also said that there is considerable sentiment in favor of a 
 constitutional amendment to eliminate tax-exempt securities. Interest 
 rates have decreased iy 2 per cent, to 2 per cent., but are still around 
 8 per cent, to 10 per cent. The best commercial paper rate, however, 
 is said to be 5y 2 per cent, and not much change is expected. There 
 has been a considerable increase in business failures during the past 
 year, but a gradual improvement is anticipated. There is no interest 
 displayed in the^export import situation. 
 
 MISSISSIPPI 
 
 Mississippi has very little manufacturing, but such manufacturing 
 industries as there are are producing less than within recent years and 
 have no surplus of stock on hand. Costs are less, as are also prices, 
 both wholesale and retail. In regard to raw products, there is 25 
 per cent, less of cotton and lumber than two years ago, and about the 
 same as in 1913. On the other hand, hogs, cows, poultry, and corn 
 have increased very markedly. The reduction in costs is said to ap- 
 
 25 
 
proximate something like 40 per cent, in the last two years, and 10 
 to 15 per cent, within the last year. There has been considerable use 
 made of the facilities of the War Finance Corporation throughout 
 the state. 
 
 The railroads are not in the best situation. From the Delta sec¬ 
 tion a report is received that one road is in the hands of a receiver, 
 and some of its branches are about to be junked. Freight rates are 
 said to be too high, and the suggestion to reduce wages and other 
 railroad costs, so that freight rates may be reduced, is generally 
 approved. 
 
 In regard to the soldiers' bonus one report is as follows: “Senti¬ 
 ment favors amply providing for and properly compensating the 
 wounded and disabled soldiers, but there has been no general senti¬ 
 ment favoring a cash bonus for all ex-service men. Even the local 
 American Legion Post went on record as opposing a soldiers’ bonus. 
 This was when the subject was first proposed. Whether or not the 
 Post has reversed itself on this, I am not advised.” 
 
 Sentiment is entirely in favor of a low tariff. Interest rates have 
 shown very little change, and while not many more failures are ex¬ 
 pected there is a feeling that it will be some time before things will 
 be in satisfactory shape. The sentiment is expressed that readjustment 
 is being held back because of unsettled conditions in Europe, failure 
 to pass the peace treaty, and high freight rates. This general state¬ 
 ment of interest is made: “Our problem, locally, is to educate the farmer 
 to live at home, which is what we are trying to do. We have, as 
 banks, made it compulsory for the farmer to raise his foodstuffs and 
 stock feed before we would agree to finance him in taking care of 
 his crop. We have attempted, more or less successfully, to induce 
 every farmer to raise hogs, poultry, dairy cows, and all kinds of food 
 crops, instead of having to buy them. We feel that this must be done, 
 for by raising a truly diversified crop, the cotton acreage will be re¬ 
 duced automatically, which will prevent a surplus of cotton. Our 
 motto is, ‘Raise enough corn, food crops, and stock feed, for your 
 own use; then raise all the cotton you can.’ ” 
 
 MISSOURI 
 
 In general, production of manufactures has fallen off in Missouri, 
 except flour, which, according to a report from the central part of 
 the state, is being produced in greater quantities than last year and 
 the year before, but less than in 1913. The only surplus of stocks is in 
 the case of some of the by-products of the packing industry. Manu¬ 
 facturing costs at the present time are considerably less than in the 
 two previous years, due to several reasons, chief among them being 
 increased efficiency, reduction in overhead, and some reduction in labor 
 
 26 
 
costs. The valuation rates for taxation were also decreased from 
 10 to 75 per cent., varying according to the different lines of merchan¬ 
 dise, the average decrease being about 38 per cent. Construction costs 
 have materially decreased, principally on account of milch lower prices 
 for lumber. In general, wholesale and retail prices are lower, though 
 the latter not in the same proportion as the former. As regards raw 
 products, there was more grain handled in 1921 than in any previous 
 year. The receipts and shipments of fruits and vegetables, as well 
 as oil, were about normal. There is no surplus on hand. Cattle de¬ 
 creased within the year by about 2.3 per cent. Milk cows increased 
 1.3 per cent.; hogs increased 8.6 per cent.; sheep decreased 6.4 per 
 cent.; and mules increased one-half per cent. There has also been a 
 slight increase in coal, as compared with last year, and the production 
 of salt has increased by about 15 per cent. Considerable coal was 
 stored to provide for the expected miners’ strike. There was a de¬ 
 creased cost of production in all industries except coal mining, as 
 compared with 1921 and 1920, but cost was still above 1913. Whole¬ 
 sale prices showed a decrease from last year in most lines except hogs 
 and sheep, but increased in lead and zinc, in which there was very 
 little change. Considerable use was made of the facilities of the War 
 Finance Corporation in the western and southern part of the state but 
 evidently not much in the central part. 
 
 There is a general feeling throughout the state that freight rates 
 are too high, but the observation is made that the question of the 
 rehabilitation of the railroads has not provoked much discussion. 
 "The farmers are disposed to consider effects rather than causes, and 
 inveigh against existing rates, without considering the financial con¬ 
 dition and obligations of the carriers.” There is some agitation among 
 the farmers in favor of a constitutional amendment to eliminate 
 tax-exempt securities. Sentiment favors a protective tariff for agri¬ 
 culture, manufacturing, and petroleum. At present borrowers are 
 finding little difficulty in obtaining the necessary credit from banks, 
 provided the security is ample. Interest rates are about 7 per cent, 
 on real estate, and 8 per cent, on personal loans, with a tendency 
 toward lower rates. Not many failures have taken place. "Most 
 of the adjustments by business concerns have already been made, 
 and those that have survived should be on a sound financial basis, 
 and with careful management should continue so.” There is very little 
 interest in the question of the Federal budget, and not much direct 
 concern about the foreign situation. 
 
 MONTANA 
 
 In Montana, manufacturing consists chiefly of flour and the mills 
 are running about 50 per cent, of maximum capacity, which is about 
 
 27 
 
the same as in 1913. There is also some oil refining, but it is a 
 new industry so that comparisons are impossible. In the central part 
 of the state the output is supposed to be about 1,500 barrels. Mining, 
 which is such an important factor in Montana, is not in a very 
 prosperous condition. Mines have been closed down and only 
 reopened at the beginning of this year. There is still a large surplus 
 of copper and other ores on hand, coal being the exception in this 
 respect. Prices are 20 per cent, to 35 per cent, less than they were 
 two or three years ago, while lumber has been reduced about 15 per cent, 
 in price. 
 
 The cattle industry has suffered very heavily. “The cattle and 
 sheep industry has declined more than fifty per cent, due to the 
 lack, two years ago, of feed and pasturage and also to the money 
 depression. Grains have also declined about 40 or 50 per cent, due 
 to the drouth of the last two or three years. The acreage for this year 
 is going to be less for the same reason, as there was not sufficient 
 moisture last fall to put in a winter wheat crop. The sugar beet 
 industry on irrigated land has been on the increased The cost of 
 production in the cattle industry has come down owing to the fact that 
 there has been a 20 per cent, reduction in wages for cattle and sheep 
 hands since 1920, but the costs are not yet down to the 1913 level. 
 General ranch supplies are about 20 per cent, less than two years 
 ago and at the same time it costs on an average 50 per cent, more to 
 market live stock than it did in 1913. 
 
 The statement is made from the southwestern part of the state 
 that “Freight rates make transportation of cattle from one point 
 to another practically prohibitory. Last fall it was impossible to 
 ship an old cow, or an old ewe, to market. The transportation charge 
 was greater than the animal would bring at the market. One-third 
 of the market price of our best fattened beef or mutton goes for 
 freight. Hay is not worth the freight to market. Our products 
 are down to pre-war prices or below. We must have freights 
 on same basis if our people are to do business successfully. We 
 appreciate that this can come only through reduction of wages. 
 Farmers and stockholders favor this reduction.” The War Finance 
 Corporation has been of very material assistance and benefit, especially 
 to livestock interests, and the loans placed in Montana have been large. 
 
 Business organizations have gone on record as against the 
 Soldiers’ Bonus Bill, but undoubtedly a majority of the population 
 is in favor of it. From most parts of the state the expression of 
 opinion seems to be in favor of a high tariff. There is very little 
 interest in the question of tax-exempt securities and the budget 
 system. Failures have been large, but it is hoped that with improved 
 
 28 
 
conditions the situation will right itself. There has been a gradual 
 easing of interest rates, which recently have been high. 
 
 The report is made that “There seems to be a definite improvement 
 in business. Conditions are still not active owing to depression in 
 live stock, but the morale of both business men and farmers is improv¬ 
 ing, and there will be no tendency to withhold effort to seed the 
 largest possible acreage and to supply all possible energy in order 
 to recover the ground lost in the period of readjustment.” 
 
 From the Butte district the following general report is made: 
 “This community is dependent almost entirely upon copper. On 
 account of connections made by the largest operator with domestic 
 manufacturers, Montana will not be dependent upon the foreign market. 
 Production will depend on domestic consumption putting it upon 
 a better basis. The market for cattle and cattle products depends 
 to some extent on the foreign market. Sheep and wool markets are 
 improving and better conditions exist in the wool market especially.” 
 
 NEBRASKA 
 
 The output of the packing houses in Nebraska is less than in 
 1919 but more than in 1913. There is very little surplus on hand, and 
 in general the cost of production has decreased, though there has been 
 an increase of 40 to 60 per cent, in transportation, while taxes have 
 increased 60 to 7 5 per cent. Wholesale prices of goods are about 
 25 to 40 per cent less than in recent years, and retail prices have 
 followed slowly. In regard to raw materials, the general report 
 for the State of Nebraska is that the farmers have 70 per cent, of the 
 corn crop of 1921 on hand, and 40 percent, of the crop of 1920. 
 According to a report from the south central part of the state, how¬ 
 ever, last year’s crop on hand amounts to about 16 per cent, of the 
 total of wheat, and 40 per cent, of the total of corn. In the grass cattle 
 country of Nebraska there is on the ranches about 50 per cent, of a 
 normal year, taking 1913 as a basis. In some counties there has been 
 a shortage of as high as 70 per cent. Hogs are reported to be only 50 
 per cent, of a normal year. This is also shown by the receipts of 
 hogs, cattle, and sheep at Omaha, all of which are considerably lower 
 than last year. Taxes, it is stated, have increased to a point that 
 needs careful attention. The situation in Nebraska has been much 
 relieved by the loans of the War Finance Corporation, and as wheat 
 and corn have increased somewhat in price the feeling has improved 
 very much in recent months. 
 
 Freight rates are regarded as excessive, and it is stated that it 
 costs in many instances as much to get the cattle or crop to market 
 as the gross yield amounts to from these products. Sentiment seems 
 to be in favor, on the whole, of the Soldiers’ Bonus. There is very 
 
 29 
 
little expression of opinion in regard to tax-exempt securities. Interest 
 rates have decreased but are still rather high, and it is expected that 
 in some districts the usual counter rate will continue to be 10 per 
 cent. There have been few failures in Nebraska among business 
 people, but some bank failures. Such opinion as has been given 
 is in favor of a budget system by the Federal Government. The 
 opinion is expressed that world politics has much to do with holding 
 back a speedy readjustment, but “Both wheat and corn have been 
 sold more freely for export with good prices during the last 90 
 days, and meat products also have sold well and caused live stock 
 to bring good prices at packing centers.” 
 
 NEVADA 
 
 There has been no copper production since the war ended, and 
 gold production has also been below normal, though it is beginning 
 slowly to revive. The opinion is expressed that “Hard times always 
 send the prospectors to the hills, and they always increase gold and 
 silver production.” Silver production is said to have increased about 30 
 per cent. There is a little copper on hand, but not very much. Miners’ 
 wages have been reduced in some places to 1913 rates, and it is said 
 that the cost of producing copper will be 40 per cent, less than two 
 years ago. 
 
 As regards sheep and cattle, the conditions have not changed very 
 much in recent years. The increase in price of sheep and cattle within 
 the last months has helped out the situation very much. The War 
 Finance Corporation has helped the live stock industry, but freight 
 rates have proved to be a great burden. 
 
 The people are said to be favorable to the Bonus Bill and a sales 
 tax is suggested as a means of raising the necessary revenue. There 
 is no opinion expressed as regards the tariff, or in regard to tax- 
 exempt securities. European conditions are given as one of the causes 
 holding back a general readjustment of conditions. 
 
 NEW HAMPSHIRE 
 
 Manufactures in New Hampshire have fallen off considerably 
 and less lumber is being cut. Of the latter it is said that there is a sur¬ 
 plus on hand. The sentiment is strongly in favor of a high tariff. 
 Interest rates were not raised during the war, the banks never charging 
 more than 6 per cent. The tendency is for them to drop to 5 per cent. 
 There have been few failures and no more are expected. High labor 
 costs are ascribed as the cause for holding back a speedy readjustment. 
 
 NEW JERSEY 
 
 In New Jersey production of manufactured goods is somewhat less 
 than it has been in recent years, and there has been a slight decrease 
 
 30 
 
in prices. It is said that there is not much change in the situation in 
 regard to the production of fruits and vegetables. 
 
 NEW MEXICO 
 
 Mining is said to be languishing, and there is a surplus of copper 
 on hand. There is said to be considerably less sheep and cattle at 
 present than there were a few years ago, but the production of beans 
 and alfalfa is about 15 per cent, more than it has been in recent years. 
 The costs of production are less than they were two years ago, but 
 greater than in 1913. The price of sheep and cattle has improved, and 
 also of wool. Alfalfa is somewhat cheaper. Considerable use has been 
 made in New Mexico, especially for live stock purposes, of the facilities 
 of the War Finance Corporation. It is reported that the railroad situ¬ 
 ation is bad. ‘‘Industries of New Mexico cannot continue to prosper 
 or exist under the present transportation costs without a very large 
 increase in price of the products of the state, and this increase is not 
 probable. For instance, the present freight on a car of alfalfa from 
 Roswell, New Mexico, to an average point in Texas is $9.60 per ton, as 
 compared with $4.50 per ton in 1914; the rate on 100 pounds of apples 
 from Roswell to the same point is now 91 cents, as against 45 cents 
 formerly. Rates are excessive to 50 per cent, degree. This is especially 
 applicable to this portion of the state (southeastern).” 
 
 Opinion about the Soldiers’ Bonus Bill is evidently very much 
 divided, while as regards the tariff, it is generally in favor of high 
 rates on wool, sheep, cattle and hides. Money is inclined to be lower, 
 though the average rate in New Mexico is about 10 per cent. The 
 opinion is expressed by several observers that there is not enough 
 capital in the state to take care of borrowers, and that there is therefore 
 considerable difficulty in obtaining the necessary credit. Failures have 
 been increasing slightly, and it is believed that there will be a consid¬ 
 erable number during the rest of the year, even though the worst may 
 be over. 
 
 NEW YORK 
 
 The state of New York reflects in such a marked degree the con¬ 
 ditions of the whole country, and its range of productivity is so exten¬ 
 sive that it is very difficult to do more than make very general 
 statements, such as one might make of the country as a whole. In 
 regard to manufactures, it must be remembered that New York pro¬ 
 duces about one-eighth of the country’s total and that the wage earners 
 in New York City alone number nearly 1,300,000, while the number of 
 its establishments in 1919 was 32,626. If compared with 1913 there 
 has been a great increase of production in nearly all lines, but since 1920 
 there has been a marked reduction in most lines. There has been 
 
 31 
 
a large decrease in the business of the wholesalers as regards value, 
 though the quantities are probably very close to those of last year. The 
 retail trade shows the same phenomenon as the wholesale trade, except 
 that in quantity the amount of goods is perhaps larger than it has been 
 in recent years. “Production costs are still above 1913, but well below 
 1920 and 1921. Wage reductions have been very unequal in different 
 lines. It is thought that further wage readjustments as well as further 
 price readjustments must continue before a relatively normal equilibrium 
 is reached/’ Wholesale prices of manufactured goods have declined. 
 The average is probably 40 per cent, below the peak. “Retail prices 
 have declined along with wholesale prices, although these declines have 
 not been so precipitous.” 
 
 The amount of agriculture has been increasing and is perhaps 20 
 per cent, larger than it was in 1913. From the central part of the state 
 it is reported that there is a considerable surplus of wheat on hand. As 
 regards fruit, there was a surplus in 1920, but 1921 was a very poor 
 year. 
 
 Railroads are said to be making some progress in effecting neces¬ 
 sary economies, which are showing good results. From New York 
 City it is reported that conditions will be enormously improved when 
 the port of New York authorities complete their comprehensive scheme 
 of a belt line railroad connecting the various warehouses. The port 
 district now comprises 105 municipalities in New York and New Jersey. 
 “Freight rates are generally considered too high, but it is not felt that 
 any particular class is being discriminated against except perhaps that 
 coal rates are regarded as excessive.” 
 
 In New York “sentiment was formerly in favor of high protection, 
 but much consideration is being given to factors such as the shift in the 
 American position from a debtor to a creditor nation, which renders a 
 high protection policy of doubtful expediency. It cannot be said that 
 a definite trend of sentiment has yet been established.” 
 
 Sentiment in regard to the Bonus Bill is very much divided, but 
 among the financial interests the feeling is that if such a measure is 
 to be adopted the sums needed ought to be raised by means of a sales 
 tax. There is considerable sentiment, apparently, in favor of a consti¬ 
 tutional amendment to eliminate tax-exempt securities. Interest rates 
 have declined in a marked degree, as is shown by the successive low¬ 
 ering of rediscount rates by the Federal Reserve Bank of New York. 
 The rate in future depends largely on the course of business. “Should 
 activity expand, as seems not unlikely, rates will probably remain not 
 far from the present level, although the present declining tendency will 
 doubtless continue for the immediate future.” At the same time legiti¬ 
 mate business enterprises have no difficulty at all in obtaining the neces¬ 
 sary credits from their banks. Failures in the beginning of the year 
 
 32 
 
reached a very high level, but they are now tending to decline, and it is 
 believed that the worst is over. It is felt that the present budget system 
 does not accomplish all that is desired, but “The advisability of an 
 amendment is doubted, at least until after further experience of the 
 present law.” 
 
 In general, it is felt in New York that substantial progress in read¬ 
 justment has been made. “Surplus stocks are pretty well reduced; 
 farm outlook is substantially better; costs of raw materials are for the 
 most part liquidated; a situation of increasing stability is being attained 
 on both the supply and demand side; high rents and high prices for 
 coal are militating against readjustments, as also the high labor costs.” 
 
 NORTH CAROLINA 
 
 The cotton mills are producing a little more than in 1913, owing 
 to the expansion brought on by the war. Cost of production is 25 per 
 cent, more than in 1913, as a result of increase in wages, but wholesale 
 and retail prices have fallen in the last few years. It is reported from 
 the southern part of the state that, owing to the boll weevil, farmers 
 have begun to plant orchards, and also because of the low price of cotton 
 there has been a reduction of crop of 60 per cent, in the last two years. 
 In spite of this there is some surplus of cotton in the hands of the 
 farmers. From the eastern part of the state it is reported that factories 
 turning out wood products are finding the cost 40 per cent, less than 
 in 1920, but higher than in 1913. From the north central part of the 
 state it is reported that tobacco has fallen off 50 per cent, in the last 
 year and 20 per cent, if compared with two years ago. 
 
 The facilities of the War Finance Corporation have been used to 
 some extent. The state is said to be in favor of a low tariff. There 
 is a growing sentiment against tax-exempt securities. Money is now 
 easier, but much trouble has been caused to borrowers owing to the 
 decline in the price of cotton. Money rates have not declined to any 
 extent, but it is expected that in the course of the year there will be 
 some fall in interest rates. 
 
 From the southern part of the state the following general report is 
 made: “Reduction in acreage and a smaller cotton crop, with a dimin¬ 
 ished cotton surplus, will have a tendency to force a better price for the 
 next cotton crop, which will be produced at a profit or nearer a profit, 
 and not at less than cost of production, which has been the condition.” 
 
 NORTH DAKOTA 
 
 In North Dakota the flour mills are turning out about the same 
 as last year, while the meat packing industry, which started last year, 
 is having an output double that of last year. It is not believed that 
 
 33 
 
there is much surplus of stocks on hand. Costs are supposed to be 
 30 per cent, less than in 1913. In regard to raw products, there has 
 been a decrease of 25 per cent, in grains and 20 per cent, in beef and 
 cattle, but an increase of 20 per cent, in dairy products and 25 per cent, 
 in coal, which is just beginning its development. Over last year there 
 is also an increase of 25 per cent, in hogs. In most parts of the state 
 more grain than usual is being held. Costs of production are consid¬ 
 erably less than two years ago, but at least 25 per cent, higher than in 
 1913. It is said that ordinary labor is back to normal. The 1921 crop 
 was raised at a cost considerably less than that of 1920. Taxes in¬ 
 creased 15 per cent, in 1921 and are 100 per cent, more than in 1917. 
 Wholesale prices are said to be about 20 per cent, lower than the peak 
 and retail prices have followed the general trend, except that cattle 
 has recently increased in price. The price of butter is said to be down 
 50 per cent, since January, 1922, due to large imports. 
 
 The facilities of the War Finance Corporation have been largely 
 used. From the southeastern part of the state comes the following 
 report: “Banks, generally speaking, have availed themselves of this 
 assistance, but it has in no way increased available funds for new loans. 
 This money has been used in paying off bills payable to reserve banks 
 in reserve cities. Local banks are thereby given a chance to extend 
 their loans already in the hands of the farmers/’ 
 
 From an eastern point of the state comes the following report in 
 regard to the railroads, which seems to express a general sentiment: 
 “The railroads are serving the state well, but rates are intolerable. 
 The general level of rates in our state is higher than that of any of the 
 adjoining states and of any other state with like physical conditions. 
 People generally feel that in this respect they are being unfairly treated. 
 The farmer also recognizes that freight cannot be added to his cost of 
 production; that increased freight charges mean decreased prices for 
 his product. Because of this he feels that there should be recognition 
 of this fact in the fixing of freight rates.” There is some opposition to 
 the Bonus Bill, but evidently not as much as in some of the states. 
 Interest rates are still high, and it seems to be expected that there will 
 not be much change until another crop matures. According to some 
 statements most banks are overextended and are unable to give further 
 assistance. There is a decided sentiment in the state to eliminate tax- 
 exempt securities. 
 
 In regard to general conditions, one careful observer reports as 
 follows: “In North Dakota, where we rely mainly on products from 
 the farm, anything that vitally affects the farmer affects business as a 
 whole. Short crops and extremely high prices for everything the 
 farmer has to use, together with sharply falling prices again just when 
 crops were ready to market, have caused stagnation in business circles 
 
 34 
 
out of which we are just emerging. The silver lining is the fact that the 
 average farmer turns to a more diversified system of farming and also 
 keeps his weather-eye open for the fake stock salesman that leaches 
 the country in the good years. We expect to see our state on a higher 
 plane five years from now than it ever has been, both in the soundness 
 of our farmers and business men and also in the methods of doing 
 business.” 
 
 OHIO 
 
 Ohio has large industries connected with the production of auto¬ 
 mobiles, and as this has expanded enormously since 1913 there is a much 
 larger production in all lines connected with the automotive industry 
 than there was in 1913 in spite of the slump that has taken place within 
 the last two years. In the clothing line, however, there has been 
 some decrease in production recently, though not much. Cost of pro¬ 
 duction is regarded as having been reduced anywhere from 25 to 50 
 per cent, in the last two years, but still considerably above what it was 
 in 1913. In many lines there are still large inventories on hand. 
 
 In regard to agriculture, conditions do not seem to have changed 
 much in most parts of Ohio. In the southern part of the state, how¬ 
 ever, the wheat crop last year was a total failure. There is a surplus 
 of corn on hand in several parts of the state and about the usual amount 
 of live stock. As Ohio’s agricultural industries supply chiefly a local- 
 market, the state has not suffered in that regard as much as some other 
 parts of the country, though there also has been considerable fall in 
 prices within the last two years. Corn has gone down in the last two 
 years from $2.10 to 35 cents a bushel, and wheat from $2.90 to 90 
 cents. The cost of production has not fallen in the same proportion. 
 There has been some use made of the facilities of the War Finance 
 Corporation. 
 
 Freight rates are said to be excessive, but the railroads are said to 
 be in a fair condition, and there is not very much complaint about the 
 service. As Ohio voted three to one in favor of a constitutional amend¬ 
 ment permitting the state to pay a bonus to all soldiers, it is generally 
 presumed that the vast majority of the people are in favor of a bonus 
 by the Federal Government. Views in regard to the tariff are much 
 divided, but there is considerable sentiment in favor of the principle of 
 American valuation. Apparently, there is not much agitation in favor 
 of the elimination of tax-exempt securities, and though some reports 
 speak of the sentiment against such securities as growing, on the 
 whole the question does not seem to arouse much interest. Interest 
 rates have, generally speaking, decreased 1 to 1J4 per cent., and 
 further slight reductions are expected. Failures have been numerous 
 in some parts of the state, but it is expected that the worst is over. 
 
 35 
 
There is no special interest displayed in the question of the Federal 
 budget, and very few expressions of opinion in regard to the condition 
 of our foreign trade. 
 
 OKLAHOMA 
 
 The production of oil is said to have increased since last year, 
 is somewhat less than two years ago, but very much more than in 1913. 
 The production of lead and zinc has been greatly reduced lately, as 
 also the production of coal. There is said to be considerable of all 
 these materials in storage. Costs of production are less than two 
 years ago, but higher than in 1913. There is said to be a great increase 
 in price of natural gas, and oil products have also gone up in the 
 same proportion. On the other hand, most of the mineral products 
 have fallen in price. Cotton, which is produced in the eastern part 
 of the state, has fallen off more than 50 per cent since 1920, but is only 
 slightly under the production of 1913. Costs are said to be 25 to 35 
 per cent, less for cotton and are about back to the condition of 1913. 
 The facilities of the War Finance Corporation have been used to some 
 extent, especially in the case of the live stock industry. 
 
 There is much complaint about high freight rates. On the 
 whole, opinion seemed to favor a high tariff. It is said that the Bonus 
 Bill is opposed. Interest rates have remained about the same, real 
 estate loans having increased, if anything. There seems to be 
 considerable expression of opinion in favor of the Federal budget 
 system, though no interest is shown in the elimination of tax-exempt 
 securities. There has been a considerable number of failures, and 
 it is said that as far as the agricultural interests are concerned, the 
 future depends entirely upon the 1922 crop. 
 
 OREGON 
 
 Manufacturing industries, such as canning, have increased since 
 1913 in Oregon, though the output is somewhat less than two years 
 ago and about the same as last year. Most of them are reported to 
 have a surplus of goods still on hand. Costs of production are 
 about back to the 1913 level and considerably less than two years 
 ago, due chiefly to a decrease in everything except transportation and 
 taxation. The wholesale price of goods is about 40 per cent, below 
 the peak, and retail prices about 25 per cent. In regard to natural prod¬ 
 ucts, there is said to have been no material change in the quantities 
 produced in recent years, though there has been a slight increase over 
 1913. There is no large stock of fruit on hand, but a considerable 
 amount of canned salmon. From the southwestern part of the state 
 comes the report that there is a surplus of lumber, especially of the 
 lower grades, of which the price is said to be about 50 per cent. 
 
 36 
 
over 1920, while the average of most of these products is about 15 
 per cent, less than 1921. Retail prices are following wholesale prices 
 reluctantly, probably about 10 per cent, over 1921 and 20 per cent, 
 over 1920. 
 
 There has been some use made of the War Finance Corporation, 
 especially for aiding the live stock industry. There is much complaint 
 about the railroad situation, especially as in some parts of the state 
 railroads have been discontinued and some comparatively large towns 
 are almost without adequate railroad communication. Rates are said 
 to be excessive to such an extent that natural resources cannot be 
 developed for shipment to a broad market. Oregon has passed a 
 Soldiers’ Bonus Law of its own, and apparently the sentiment of 
 the community is largely in favor of a Federal Bonus as well. There 
 is little attention paid to fc the question of tax-exempt securities and the 
 matter of the Federal Budget. Interest rates are still high, but it is 
 expected that they will be decreased somewhat in the near future. 
 While reports from different parts of the state vary, business failures 
 have evidently been increasing of late, and more seem to be expected. 
 It is said that foreign lumber sales have increased largely, and this has 
 helped relieve the business situation somewhat. Sentiment in general is 
 in favor of a high tariff. 
 
 It is said that the weak foreign exchange market and the inability 
 of foreign nations to finance their requirements are factors holding back 
 development; also the fact that the Oriental countries have been 
 building their own flour mills, which is hindering the further devel¬ 
 opment of this industry. 
 
 PENNSYLVANIA 
 
 The three great factors in Pennsylvania are steel, coal and oil. 
 In all these three the production, while greater or almost as great as 
 that of 1913, is now considerably less than it was in 1920 and 1921. 
 Cost of production is still about 65 per cent, above 1913, while prices 
 have dropped very much from the peak and are back almost to the 
 condition of 1913, due chiefly to the decrease of labor and of materials, 
 and in spite of the fact that there has been a considerable increase 
 in taxation and transportation. Along agricultural lines the situation 
 has not changed very much, though the prices of beef and poultry, 
 dairy products, and wheat and oats have fallen considerably in 
 Pennsylvania, as elsewhere. 
 
 There is no serious complaint in Pennsylvania about the railroad 
 situation, though it is felt that rates are about 20 per cent, too high. 
 From the Pittsburgh district comes this interesting statement: “Banks 
 as investors in railroad securities want to see the roads given a 
 chance to rehabilitate themselves and earn an adequate return on 
 
 37 
 
their valuation. It is felt that with business reviving and the con¬ 
 sequent increase in traffic, together with the wage scale placed on 
 a basis equal to that paid in other lines of industry the roads will 
 function normally. Shippers in general are more interested in rate 
 reductions than any other consideration. The general public’s 
 attitude is hard to determine, but there seems to be no sentiment for 
 Government ownership.” 
 
 There is some opposition to the Soldiers’ Bonus Bill, but in 
 general sentiment is in favor of it, and a sales tax is recommended as 
 a means for raising the revenue. There are no reports favoring a low 
 tariff, though a few observers speak for a moderate tariff; in general, 
 Pennsylvania is for a high protective tariff. Interest rates have fallen 
 1 to B /2 per cent, within the last two years, and it is expected that 
 there may be further decreases. Failures, though increasing in number, 
 have not been as serious as some of the earlier ones, and it is ex¬ 
 pected that the worst is over. There seems to be no desire in 
 Pennsylvania to eliminate tax-exempt securities, and there is no wish 
 that the Constitution be amended in order to improve the present 
 Federal budget system. According to reports received, it is the view 
 that adjustment is held back by the following factors: High taxes; 
 extravagant governmental expenses; high transportation charges; high 
 labor costs; and the condition of European finances. 
 
 RHODE ISLAND 
 
 In Rhode Island production of machinery is about 20 per cent, of 
 1919, and perhaps 30 per cent, of normal. Textiles have been falling 
 off, metal trades show a slight increase and improvement, while 
 jewelry is between 30 and 40 per cent, of normal. The textile mills 
 have also been very much affected by continual strikes. There is some 
 surplus in some of the textile lines, including cotton goods and tire 
 fabrics. Reduction of costs in labor and raw materials has resulted 
 in a reduction of the net cost of manufacturing over last year and two 
 years ago, while there has been a substantial increase in these costs 
 over 1913. Wholesale prices have been reduced in general about 
 50 per cent, from the peak; retail prices, perhaps 30 to 40 per cent. 
 
 There is some opposition to the soldiers’ bonus, but those favoring 
 it desire the money to be raised by means of a sales tax. There is 
 practically no complaint in Rhode Island about the railroads, and the 
 railroad situation seems to be regarded with equanimity. The 
 railroads have been affected to some extent in Rhode Island by the 
 increase of motor trucks, and as regards passenger service, an increase 
 in electric interurban lines. A high tariff is favored by all those 
 reporting, and there is no interest shown in regard to tax-exempt 
 securities. Interest rates have decreased about two per cent, in 
 
 38 
 
the last two years, and it is expected that there may be a further slight 
 decrease. There seems to be no interest at all in the Federal budget 
 and amendments to the Constitution have not been very popular in 
 Rhode Island of late. 
 
 SOUTH CAROLINA 
 
 There has been a large decrease in the production of cotton, but 
 an equivalent increase in corn and grain. From the southeastern part 
 of the state comes the report that the production of lumber has very 
 largely increased and is perhaps double what it was in the last two 
 years. There is some surplus of cotton and corn on hand and, at least 
 in some parts of the state, some lumber. Costs of production are said 
 to be 25 per cent, less than last year and 40 per cent, less than two years 
 ago, though the figures vary considerably. This decrease is due chiefly 
 to a reduction in wages and in materials, though transportation has 
 increased and money shows very little change. Wholesale prices have 
 decreased in the case of cotton, which has fallen from, roughly, 40 
 cents a pound to 16^2 cents, while lumber has decreased somewhere 
 from 30 to 40 per cent. Retail prices are perhaps 25 per cent, lower 
 than they were at the peak. The facilities of the War Finance Corpora¬ 
 tion have been made use of in the western part of the state, but from 
 the eastern part comes the report that they have been used only very 
 slightly. 
 
 While railroad service is said to be good, freight rates are felt to 
 be exorbitant, both for products shipped out as well as for those shipped 
 in. According to the reports, there is general opposition to the Soldiers’ 
 Bonus Bill. Sentiment favors a low tariff, but based on American 
 valuation. Sentiment against tax-exempt securities has not developed, 
 and there is no special interest in the Federal budget. In some parts 
 of the state, notably the eastern, borrowers have had difficulty in obtain¬ 
 ing sufficient credits from their banks, and bank rates have decreased 
 only very little. Failures have been fairly numerous and have tended 
 to increase in recent months. It is said that the greatest need is “the 
 gradual restoration of foreign trade “and if it could be accelerated by 
 the government in some way normal prices would soon be restored.” 
 
 SOUTH DAKOTA 
 
 In flour and feeds production is more than in 1920, due to the better 
 crop of 1921. There has been more or less increase in a small way of 
 manufactured articles, as the territory has been developed. Prices have 
 been falling since 1920, at the end of which year they reached their 
 peak, and the same is true of the retail prices. In regard to raw 
 products 1920 was an extremely wet year and as a result there has been 
 considerable increase in the crop since that time, especially in corn. 
 
 39 
 
Small grains have decreased somewhat, and the same is true of live 
 stock. The only surplus on hand above normal is in the case of corn. 
 Taxes and interest rates are high, but help is very much lower, with 
 the result that costs of production are considerably lower than 1920 
 and 1921, though still 50 per cent, higher than in 1913. Besides the 
 increase in taxation and interest rates, transportation has also increased, 
 while other items have decreased. “There has been considerable use 
 of the facilities of the War Finance Corporation, but the fact is that 
 with the great drop in prices very few farmers have been entitled to 
 any further extension of credit in considerable amounts.” The fall of 
 prices for agricultural products needs no repetition here, as it has been 
 stated several times, and South Dakota has been no exception. 
 
 According to all reports, the railroads are adequately serving the 
 state, and it is reported from the eastern part of the state that “rates 
 would not be so greatly criticized if the prices for merchandise pur¬ 
 chased by the farmers were in line with the prices received for his 
 products.” 
 
 Opinion in regard to the Soldiers’ Bonus Bill is divided, but as the 
 state itself agreed to pay its own ex-service men a bonus, it probably 
 means that a majority would vote in favor. As a means of raising the 
 money a modified sales tax is suggested. The tariff, according to most 
 reports, is not generally discussed. “The American valuation plan 
 seems to have merits, though the average westerner will favor low 
 tariff, if it will bring lower-priced commodities.” Such sentiment as 
 there is seems to be in favor of a low tariff. Credit has been restricted 
 and money rates have been high, being still around 9 per cent, in most 
 parts of the state. Failures among business firms have been decreasing, 
 but among the farmers there has been a considerable increase. It is 
 stated by one observer that the earnings of the banks for the next few 
 years will be mostly absorbed taking care of necessary adjustments. 
 There is no strong sentiment in favor of eliminating tax-exempt securi¬ 
 ties. As one observer states: “We are in an agricultural territory which 
 benefits by the sale of state rural credit bonds and Federal and bank 
 bonds.” As far as there is any interest in the matter of the Federal 
 budget, it is in favor of the system, and it is hoped that something akin 
 to the English system may develop. High transportation costs and high 
 labor costs are said to be holding back readjustment, but it is said that 
 some of the periodicals and monthly letters put forth by eastern banks 
 and business houses have been of great service in educating the people 
 as to what course of action is needed in the immediate future. 
 
 TENNESSEE 
 
 All manufactured products have been much reduced in quantity in 
 the last few years and the decrease is anywhere between 15 and 40 per 
 
 40 
 
cent., the lowest production being* in certain specialized lines of manu¬ 
 factured lumber and cotton-seed products. Costs of production are 
 only slightly more than in 1913 and considerably less than in more 
 recent years. This is due chiefly to a decrease in the cost of labor, 
 materials and construction, but other items, such as transportation and 
 taxes, have gone up, while money has remained pretty constant. Whole¬ 
 sale prices of manufactured goods show a decline of 40 to 50 per cent, 
 in manufactured lumber, as much as 66 per cent, in certain steel 
 products, and perhaps 20 to 25 per cent, in flour. There is not much 
 of a surplus of manufactured goods, however, on hand, liquidation 
 having taken place in nearly all lines. In regard to raw products, a 
 surplus of cotton and lumber is reported, especially from the western 
 part of the state. There has been an increase of phosphate and wheat, 
 but a considerable decrease of hogs, lumber and cotton, the average for 
 agricultural products showing perhaps a 30 per cent, decrease in recent 
 years. Costs of production have declined from 25 to 50 per cent, and 
 the decline in wholesale prices has corresponded more or less to the cost 
 of production. Retail prices have not followed suit to the same extent. 
 There has been a marked use made of the facilities of the War Finance 
 Corporation. 
 
 Railroads are said to have curtailed expenses as far as possible and 
 at the same time maintain an adequate service, but freight rates are 
 considered excessive, and it has affected especially the prosperity of 
 phosphate, fertilizer and agricultural interests. It is reported that there 
 is strong opposition everywhere to the Soldiers’ Bonus Bill. Interest 
 rates are still high, and there has not been much change, though it is 
 hoped that there may be a slight decrease in the next few months. 
 While failures have increased slightly, it is expected that in most lines 
 there will not be many more, except possibly in some of the smaller 
 retail businesses. It is not felt that the budget system has accomplished 
 very much for the Federal government, and there is a very strong 
 sentiment against tax-exempt securities. It is held that high taxes, high 
 transportation rates and the foreign situation are holding back the 
 necessary readjustment and more prosperous times. 
 
 TEXAS 
 
 It is reported from the eastern part of the state and also from the 
 southern part that petroleum products have increased very largely in 
 the last few years, being as much as 25 per cent, more than two 
 years ago, and possibly as much as 100 per cent, more than in 1913. 
 The result is that oil well drilling equipment has also largely increased. 
 This is due to the opening of many new oil fields. Costs have been 
 reduced, owing to the decline of wages, construction material, and 
 interest rates, while the charges for transportation and taxation have 
 
 41 
 
been rather constant. The manufacture of lumber is also active 
 again, and while the output is smaller than in 1913, it is larger than 
 in 1919. The same condition exists in regard to sugar refining and 
 most other lines. In regard to raw products, what has been said 
 about oil refining applies equally to the production of crude oil. Cotton, 
 on the other hand, has decreased very much recently. From the 
 central part of the state it is reported that its place has been taken 
 somewhat by corn, of which 25 per cent, more was produced in 1921 
 than in 1920. There has also been a large decrease in production of 
 rice since 1913, while cattle, sheep, and wool show comparatively little 
 change in most parts of the state. Wholesale prices have everywhere 
 fallen very largely, especially for cotton, though there has been some 
 improvement in recent months. The facilities of the War Finance 
 Corporation have been used, but there is still a surplus of products in 
 the hands of the producers, especially cotton and rice. Retail prices, 
 while they have followed the decline of wholesale prices, have not fallen 
 to the same extent. 
 
 Freight rates are considered excessive, “Particularly in that they 
 have not shared the decline that has attended agricultural products.” 
 No definite proposals in regard to the rehabilitation of the railroads 
 have been made. “It is felt that in Texas the larger trunk lines could 
 operate with a better profit if the heads of railroads would be more 
 appreciative of the need of incurring the good will of the public.” 
 General sentiment seems to be opposed to the Soldiers’ Bonus Bill, 
 and no definite plan for financing it has been considered. Texas 
 is opposed to a high protective tariff. There is no sentiment in regard to 
 a constitutional amendment to eliminate tax-exempt securities, and no 
 opinions expressed in regard to the Federal budget system. Interest 
 rates have shown a slight decrease, and it is believed that this tendency 
 will continue. Business failures have been increasing. 
 
 It is stated that conditions that are holding back speedy readjust¬ 
 ment are: “Extravagance in governmental administration; failure 
 to recognize that large sums of money due from foreign govern¬ 
 ments can be paid only by permitting these foreign countries to sell 
 their goods and the product of their labor to us, in payment of their 
 debts; an unscientific and a most expensive method of administering 
 and collecting our taxes; an unwillingness of so-called trade unions 
 or union labor to assume a proportionate reduction in costs.” It is 
 further pointed out that “no economic readjustment is possible unless 
 the freest possible commercial intercourse is permitted between this 
 country and foreign countries, especially Europe. Exports of cotton 
 and of wheat have kept up in fairly good volume, but the sale of both 
 raw and manufactured goods has been necessarily restricted by the 
 fact that foreign countries cannot pay for our goods when we 
 
 42 
 
interpose a barrier, by way of an extortionate tariff or otherwise, which 
 keeps them from selling back their manufactured goods and their 
 products in turn.” 
 
 UTAH 
 
 Manufactured products are said to have been reduced about 20 
 per cent, within the last two years, while as regards natural products, 
 coal production is about half of what it was in 1921, but probably double 
 that of 1913. Wool, sheep, and cattle are unchanged in quantity in 
 the last three years, but probably represent a 40 per cent, reduction 
 since 1913. Copper mining is said to have decreased about 8 per cent, 
 since 1913 and 15 per cent, since 1917. # Due to increased acreage, 
 farm products have been increasing. The only surplus seems to be 
 hay and copper, and of the latter stocks are being rapidly depleted, 
 according to reports. The cost of mining coal in 1922 is about 20 
 per cent, higher than in 1917, even considering the wage cut. “The 
 cost of producing wool, sheep, and cattle is slightly lower than in 1918 
 to 1921, but much higher in the years previous to 1917, due to wage 
 advances, scarcity of range, tax increases, and rise in prices of supplies.” 
 There has been a sharp decrease in the wholesale prices of many prod¬ 
 ucts, but not as much change in the case of retail prices. There 
 has been a large use of the facilities of the War Finance Corporation, 
 both by the sugar industries and by sheep and cattle men. 
 
 Railroads are said to be in good condition, though freight rates 
 here, as elsewhere, are felt to be too high. It is said that rates on 
 agricultural products ought to be reduced 25 to 33 per cent., on coal, 40 
 per cent., and on other commodities, 10 to 25 per cent. All taxable, 
 interests are said to be opposed to the Soldiers’ Bonus Bill. There 
 is a strong sentiment in favor of a high tariff for agricultural products, 
 especially wool, beef, and mutton. “In agricultural sections banks are 
 unable to handle even the legitimate demands of borrowers who have 
 good security, but the situation is slowly, very slowly, recovering.” 
 As a result, interest rates have been practically unchanged for some 
 time, and no immediate change is expected. “Business failures have 
 been increasing, due principally to local conditions, aggravated by the 
 prolonged national slump.” The Federal budget system, as far as 
 opinion is expressed, is said to be popular, but there is not much 
 interest shown in regard to the question of tax-exempt securities. 
 Foreign sales and foreign conditions are said to play practically no 
 role in Utah. 
 
 VERMONT 
 
 There is less slate and other similar articles being produced in 
 Vermont, and there is practically no surplus of stocks on hand. Costs 
 of production have come down slightly, owing to a slight decrease in 
 
 43 
 
labor and materials, though taxation is higher. Sentiment is in 
 favor of a high tariff. Interest rates have not varied very much, 
 being about 6 per cent, for ordinary loans. 
 
 VIRGINIA 
 
 In most lines of manufactures there has been an increase of 
 output during the year, and conditions are generally better than in 1913. 
 Reduction of output, however, is reported in the lumber products. The 
 artificial silk mills are said to be doing especially well. Manufacturers 
 generally have no surplus of stocks on hand. Costs of production, 
 generally speaking, are less^than in 1920 and 1921, but anywhere from 
 35 to 50 per cent, higher than in 1913, owing to the fact that taxation 
 and transportation charges have increased. Wholesale prices of prac¬ 
 tically all manufactured products have come down 40 to 60 per cent, 
 from the peak, while retail prices have followed the same tendency, 
 though not to the same extent. During 1921 considerably less tobacco, 
 lumber, and coal were produced than in previous years, but the output 
 of other products was about normal. Costs are said to be about 
 twice as much as in 1913 but only one half of what they were in 
 1920. This is owing chiefly to the sharp reduction in price of farm 
 labor, though mining labor has been reduced very little. Of most 
 natural products there is no large surplus on hand except peanuts, 
 which are lower in price than ever before and which are filling the 
 warehouses. In the last few months there has been a slight demand for 
 peanut oil. The facilities of the War Finance Corporation have been 
 used chiefly for the benefit of the peanut industry. 
 
 Transportation conditions in the state are said not to be normal, 
 as only four roads are paying their way. There is much opposition 
 to the Soldiers’ Bonus Bill, but if it is to be passed a sales tax is 
 favored as a means of raising the necessary money. Virginia is against 
 a high tariff. There is no interest displayed in the question of tax- 
 exempt securities and practically none in regard to the Federal budget 
 system. Interest rates are said to have decreased 1% per cent, in the 
 last two years, and further slight decreases are expected. In the past 
 year failures have increased very largely, but it is expected that the 
 worst is over. It is said that one of the chief factors holding back 
 readjustment is the situation in regard to foreign exchange, arid the 
 view is expressed that it will be necessary for this country to assist in 
 the rehabilitation of foreign countries by lending additional money. 
 
 WASHINGTON 
 
 In the manufacturing industries in Washington it is said that more 
 clothing is being produced than before, and the same is true of dairy 
 products, canned goods, flour and condensed milk. On the other hand, 
 
 44 
 
machinery has fallen off, owing to the fact that “During the war period 
 a great many machine and foundry shops sprang up in response to the 
 increased demand. Many of these are operating on a very restricted 
 basis and others have ceased entirely.” There is practically no surplus 
 of any kind on hand, and the improvement has been especially marked 
 in the case of condensed milk. Costs of production are about the same 
 in this last year, less than two years ago and 30 per cent, higher than 
 1913. The latter is due to the increased cost of labor, and also some¬ 
 what of materials. On the whole, wholesale prices are 25 per cent, 
 lower than they were at the peak, and retail prices have also come 
 down considerably. In regard to raw products, “Lumber production has 
 increased during the past two years. It has also increased since 1913.” 
 Salmon, on the other hand, has decreased substantially during the last 
 two years. Fruit and agricultural products have increased, and there 
 has been an increase also in the production of seeds. There is a surplus 
 of berries on hand, but not of other products. The wholesale price of 
 lumber is lower than two years ago, but slightly higher than last year, 
 and salmon in general has decreased. 
 
 The railroad situation is satisfactory, but it is felt “That there is 
 a decided discrepancy in the costs of various classes of labor, particu¬ 
 larly as applied to the railroad brotherhoods. It is emphatically believed 
 that as rates are reduced there will be a revival of the lumber industry 
 in this section (Seattle), which in turn will affect the business com¬ 
 munity at large.” There is much opposition to the Soldiers’ Bonus 
 Bill, but in so far as it is favored it is hoped that a sales tax will be 
 used to raise the money. “The general sentiment is in favor of a tariff, 
 but opposed to the principle of American valuation.” The sentiment 
 is gaining steadily in favor of a constitutional amendment to eliminate 
 tax-exempt securities. Money has been easy and there has been a slight 
 decrease of interest rates, and it is expected that the course in the 
 coming year will follow the lowering of the eastern rates. While 
 failures increased in January, they have been decreasing of late, and 
 it is not believed that there will be an unusually large number during 
 the rest of this year. There is apparently little interest in the question 
 of the Federal budget. 
 
 It is felt that the conditions holding back speedy readjustment are 
 high labor wages, especially of railroad employees, which causes exces¬ 
 sive freight rates; then, also, the instability of foreign exchange is 
 blamed, high taxation and unsettled European conditions. Exports have 
 increased in the last six months, due to more favorable exchange condi¬ 
 tions and increasing demand for lumber in Japan. 
 
 45 
 
WEST VIRGINIA 
 
 In the coal industry production was slightly larger than last year, 
 but only about 25 per cent, of what it was two years ago and very much 
 less than in 1913. The production has been materially curtailed this 
 year, as there has been no market, and since the first of April the mines 
 have all been closed down on account of the strike. Lumber also is not 
 being as extensively manufactured as it was two years ago and in 1913. 
 The result is that lumber manufacturers are trying to get rid of their 
 surplus supplies, and hence there is an over-supply of rough lumber on 
 hand. Glass works have more business booked than for several years 
 past. Tin plate works are running full capacity, zinc smelters about 50 
 per cent, of capacity and china and tableware about 80 per cent. Costs 
 of production show a considerable reduction in the last few years, and 
 in regard to coal, costs are said to be only slightly higher than in 1913. 
 Such figures as are given seem to indicate that costs are 25 per cent, 
 less than in 1920 and 1921. Wholesale prices have decreased. The 
 price of bituminous coal has declined as much as 100 per cent, in the 
 past twelve months, and it is said that it is being sold for less than the 
 cost of production. This is also due partly to high freight rates, which 
 according to opinions expressed ought to be reduced about 30 per cent. 
 
 It is said that the state does not desire a bonus bill until economic 
 conditions improve. Rates have remained pretty constant in West 
 Virginia, according to the information obtained. The total number of 
 failures has not been large, but it is feared that if the coal strike con¬ 
 tinues a long time there will be a number of serious ones. The opinion 
 is expressed that “There is a feeling that the prosperity of the country 
 is entirely dependent upon the reduction of labor to a living wage and a 
 large reduction in freight rates. Certain parts of West Virginia are 
 almost entirely dependent upon the prosperity of the coal business, and 
 unless there is a change in the condition of union labor there cannot 
 be prosperity in the union coal fields.” In parts of the state not 
 dependent upon the coal industry the view is expressed that a stabiliza¬ 
 tion of foreign exchange and foreign conditions must precede any per¬ 
 manent improvement. 
 
 WISCONSIN 
 
 Manufacturing industries in Wisconsin show an excess of pro¬ 
 duction over 1913 in nearly all lines, especially in the automobile 
 and accessories business, which was in its infancy in 1913. Farm 
 machinery is an exception to the general situation, the production being 
 perhaps only 50 per cent, of what it was in 1913. In comparison with 
 two years ago production in all lines is perhaps 20 to 40 per cent, 
 less. Production costs are less than in 1920 and 1921, but from 50 
 to 150 per cent, above those of 1913. The various items that enter 
 
 46 
 
into the cost of production, such as labor, materials, capital, and con¬ 
 struction, are less, while taxation is higher and transportation shows 
 little change in recent years. There has been a decided drop in whole¬ 
 sale prices of practically all manufactured goods: autos and accessories, 
 20 to 30 per cent.; farm and heavy machinery, 15 to 35 per cent.; 
 knit goods and work clothing, 20 to 40 per cent.; shoes, 15 to 30 per 
 cent. As regards the manufacture of paper, which constitutes an 
 important product of the south central part of Wisconsin, production in 
 1921 was about 25 per cent, less than in 1920, but perhaps 100 per cent, 
 more than in 1913, and its wholesale price has decreased perhaps 60 per 
 cent, from peak. In no lines is there said to be much surplus in the 
 hands of manufacturers. 
 
 As regards natural products, wood products are materially less 
 than either last year, two years ago, or 1913, while in agricultural 
 products there has not been very much change, on the whole. Wis¬ 
 consin is especially important for its dairy products, and these have 
 at all times a rather steady market; if anything, there has been an 
 increase in these products since 1913. From the southern part of 
 the state it is reported that “Labor is down, cost of production has 
 declined one-third. As the boom did not hit farm lands, here as in 
 Iowa, Wisconsin farmers are in an easier financial situation than 
 elsewhere; they do not have to pay interest “And principal on inflated 
 values/’ In general, the 1921 crops total much more in bulk and 
 value than in 1913. There has been a surplus of corn and feed in 
 some regions of Wisconsin, but the surplus of hogs is being marketed 
 rapidly. Very little wool or wheat is carried over. Farm products, 
 as elsewhere, are substantially lower in price than one or two years 
 ago, but most of those in Wisconsin are above the prices prevailing 
 in 1913. Retail prices have followed the same trend as wholesale 
 
 prices. The cost of cheese production is much less on account of 
 
 falling prices of feed, and pack of peas, the principal Wisconsin 
 canned product, will also be materially lower this year than in recent 
 years. 
 
 It is felt that transportation facilities are adequate for present 
 needs, but there is a strongly expressed desire for the Great Lakes- 
 St. Lawrence Waterway, and it is hoped that freight rates will be 
 reduced especially on coal, ore, iron and steel products, building 
 materials, and lumber. It is felt that the railroads are having to pay 
 too much for their labor, and a reduction of rates on basic commodities 
 
 would place the roads on a sounder basis. Much opposition is 
 
 expressed to the Soldiers’ Bonus Bill. There is considerable senti¬ 
 ment for the American Valuation Plan, and in general, a protective 
 tariff seems to be favored. Interest rates have decreased 1 y 2 to 2 
 per cent., and it is believed that the decrease will continue for this 
 
 47 
 
year. Opinion in regard to tax-exempt securities seems to be divided. 
 There is little interest in the Federal budget system. Money on the 
 whole has been easier of late, and it is not expected that there will be 
 an unusually large number of failures. It is felt that the conditions 
 retarding ipeecfy ’rekdjustment are high freight rates, high cost of 
 labor, and high qo$t of coal. 
 
 WYOMING 
 
 In Wyoming there is said to be considerably less cattle and sheep, 
 perhaps as much as 25 to 60 per cent, less than in recent years, the 
 decrease varying in different parts of the state. This is partly due to 
 natural conditions and partly to shortage of funds to finance the 
 industry. Coal increased between 1913 and 1920 24.83 per cent., 
 but the latter marked the maximum and since then there has been a 
 considerable decline. There has been a reduction in costs of pro¬ 
 duction, notably in cattle and sheep raising, but the other items that 
 enter into cost have remained practically stationary in price, except 
 taxation, which has increased. Wholesale prices are considerably 
 lower than they were a year or two ago and in some instances are 
 as low as prices for 1913. It is said that the War Finance Corporation 
 has made large loans, practically all through the Wyoming Stockmen’s 
 Loan Company. 
 
 Railroad service is on the whole said to be satisfactory, but the 
 rates are much higher than in 1916, and for some products, such as 
 hay, notably, the rate to market is prohibitive. The rates on in¬ 
 coming freight, particularly on salt and grain used by the stockmen, 
 are excessive, and rates on coal for fuel are also very high for short 
 hauls. This situation is especially felt, as these freight rates bear 
 no relation whatsoever to the proceeds realized from live stock sales 
 at market. Opposition is generally expressed to the Soldiers’ Bonus 
 Bill. There is much sentiment in favor of a high tariff and of the 
 American Valuation Plan. Opposition is expressed to tax-exempt 
 securities, and it is hoped that some action will be taken to prevent 
 their increase. Business failures, on the whole, have been few, except 
 in the case of the live stock industry, and even there it is believed that 
 the situation is about cleaned up. As factors retarding readjustment, 
 high railroad rates, profiteering on the part of the retailers, and the 
 income tax law are mentioned. It is said that there is no inducement 
 whatsoever under the present income tax law to invest in anything 
 except tax-free bonds. # __ .... 
 
 CfOT 6 1923 
 
 48