Current Situation

As January progresses, perhaps the most significant general occurrence in the business world is the continued ease of money. While this is natural at this time of year, yet the prospect of plenty of cheap funds is cheering to everyone except possibly the Federal Reserve Banks, which are at present frequently not earning their dividends. Credit 'extended by the Reserve to member banks at this time last year amounted to $541,000,000; now it is only $203,000,000 having fallen $93,000,000 since Dec. 24, 1924.

Security and commodity prices, while apparently high, are growing firm on reactions, with the suggestion of advances likely to be continued. The barometric steel industry is steady without being hysterically prosperous. Output is at about 85% of capacity.

The controversy concerning French War debts to the U. S. has temporarily curtailed flotation of foreign loans here. On the horizon, however, the restoration of sterling to its gold par 'becomes clearer and clearer.