New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-08
Reserve Board
Says Business
Outlook Is Good
Labor Conditions Assuming
More Normal Aspect as
Result of Cancellation of
War Contracts

WASHINGTON, Dec 7.~-Although
there is general recognition that great
changes in business are impending, the
future is regarded with confidence. and
but little pessimism or fear Is evident
in the country, according to the latest
summary of the Federal Reserve Board
issued to-day, bearing upon conditions
throughout the United States during
November.
I'm some districts it is already re-
ported" the board states, chat can
collation. Of government contracts has
altered the commercial aspect very pro-
toundly, besides influencing for the
worse the ability of concerns with high
cost Inventories to pay taxes On the
other hand, reimbursement of labor, in q
way that will restore the employees in
munitions and other war plants in their
ola lines Of industry, is regarded as
essential and will be problem Of the
immediate future. Whether it will be
practicable to take all the floating sup
ply of labor off the market as fast as
IL appears is now admitted to be
serious question.
"On the other hand the opening of
new channels of civilian demand and
1he release of staple materials such as
WOOL COTTON, rubber and others is be-
ileVed llkely to reestablish old market
ing methods almost without DELAY. THE
readJustment period is expected to be
snort, IS the opinion in some districts
IL IS, however, reported from important.
sectlons, largely those engaged in agri-
Gultural occupations, that comparat{ve
~ ilttlc readjustment will be necessary
a mat ample outlet for everything
Loaf can be produced is already seen,
Accorolng to one Federal Reserve
4scn., as government demands relax.
me tendency will be to release. first
laoor; second, material, and. third
credlt. These much needed essentials
can pc devoted to peace industries and
VIII 1acllltate their return to SUPPLYING
Inc enormous reconstruction demands
or the world The trade awaiting the
industries of the district promises a
continued and more stable prosperitv
ms appears, with more or less modif
caVlon, TO be the general opinion, and
IS passed upon the belief that the pro-
auctlve power of the United States will
DE quite as steadily drawn upon in con-
nection with restoring the indnstr;os of
me world as has been the case in con.
"ecoloh with their distinctions"
Labor Situation Improved
/, according to reports written since
me signing of the armistice. and re-
Iatlng generally to conditions in the
Eastern States, the effect of industrial
requirements already brought about
mas been to overcome the extreme
scarcity OF labor in many lines and to
restore much more normal condition
among working forces.
The financial report from all Fad
eral Reserve DISTRICTS" the board points
out, rs generally favorable. Suisse
quent to the completion of the fourth
Liberty Loan there was the usual re-
taxation and tendency to enlarge &C
cohmodatlon TO some extent in favor.
OF commercial uses. On the other.
hand, the general testimony is to the
erect that banks are. carrying heavy
loans, having extended large accommo.
datlons upon the basis Of certificates of
indeDtedness and bonds. Rates OF in,
terest have continued firm, with some.
tendency to shrink since the armistice
vas announced, due to the belief that
future burdens upon the banks will be
less than at present. 1t is generally
recognized, however, by bankers that
government financing for the next sew
eral months will continue heavily and
that conservation is essential TO the
maintenance of soundness.
Agricultural Outlook Favorable
IN the agricultural regions reports
lndicate almost universally favorable
cohdltlons. Good weather in the cotton
districts is reported as having nut the
soil into good condition, while in the
wheat region preparation for next
years crop has proceeded in an un-
usually satisfactory way. While staple
products have been held back some
what by embargoes upon the movement.
over the railroads, the high prices for
them have insured the farmer good
current return, and he has been ah1a
TO secure bank accommodation when
needed for carrying such products in
warehouses pending sale. The croDs of
the last season, now practically ali har-
vested have been almost uniformly of
excellent financial yield, for where the
output was short, high prices made IN
for the decreased quantity. In few
places crop failure, either total or par
tial, has embarrassed the farming com
munlty, and this has been especially
true IN some parts of the cattle raising
region. These conditions are local and
nave little national significance
1T is the opinion Of the Reserve Board
that the banks Of the country are in
position which calls for careful and
farsighted handling in order that their
resources may not be too rapidly alb
sorbed in connection with purely de-
velopmental work. 1t is also asserted
that they are in position Which calls
Tor very conservative treatme, in or
der gradually TO reduce the loans on
war paper which have been piled up in
the process of floating the several Lib