Credit Turn

One broad index of business is the volume of bank loans to commerce, industry and agriculture, tabulated each week in 101 cities by the Federal Reserve System. During Recovery I these loans revived with general business in the spring of 1936, by last October reached a peak of $4,868,000,000. Then with Depression II they plopped to $3,916,000,000 for the week ended June 22. Last week, for the first time in 21 weeks, the Federal Reserve's tabulation showed a rise. The substantial $20,000,000 rally made economists wonder if the turn had come in credit as it apparently had in the stockmarket. That the volume of bank loans to commerce, industry and agriculture was expected to slump again this week was easily explained --U. S. Steel Corp. repaid the $50,000,000 it borrowed last December.

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