The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-07-02
But Federal Reserve Board
Warns Against Speculation.
Prospects for Prosperous Year
Now Positive, Says Report.
PRICES KEPT RISING IN JUNE
Agricultural Forecasts Are More
Than Being Justified.
No Unemployment Noted, With
Farm Laborers in Demand.

washington, july z.-Optlmlsm as
to the business outlook reported to-
! day in the federal reserve boards
! monthly statement of conditions was
tempered with renewed warning
against undue speculation.
I'm nearly all the districts" the
boards statement said, the opinion
is entertained that the prospects for
a successful and prosperous year with
very large output of goods and al
most unprecedent financial returns
both TO manufacturers. agriculturists
and laborers now are positive. The
carried too far and may exert an in
| furious influence, aided and furthered
| by the excuses OF free credit and
| speculation tendencies. appears as the
principal offsetting influence on the
| situation"
Prices Rose in June.
Prices continued to rise thruout
June the boards statement showed
and enormously heavy demand for
goods for export had rendered prod
uctS in many lines scarce. In nearly
all districts il was reported BUSH
ness men had decided they could rely
upon heavy demand and continuous
ly sustained prices for some time to
come, while a feeling of apprehension.
| entertained early in the year was dis
appearing, jobbers and retailers read
| lily entering into large constituents
| for fall and winter.
In many respects the agricultural
prospects of the early spring are be-
ing more than justified. Wheat. corn.
cotton, tobacco and Pacific coast
crops will be harvested in record
quantities. Livestock continues high
in price.
Steel and iron experienced a distinct
turn for the better. The fuel situation
has been much below normal, with
prospects of tight situation next win
| ter. Metal mining industry was again
! improving.
More Manufacturing.
Manufacturing likewise took an up
ward turn during June. Demand for
| fine cotton goods exceeds production
Shoe factories are producing at maxi
mum capacity while heavy demand
from Enrope has drawn off much of
| the available supply. Wool products
are sold ahead for month"; Automo-
bile manufacturing is running in many
plants at record levels
Building shows continuation of the
revival noted in previous months.
| Heavy buying of lumber by retailers
has become general There is much
| trading in houses and business prop
erty. THE labor situation has now
| reached a distinctly advanced stage of
full employment" the boards state
ment said In commenting on employ
ment conditions
! There is apparently ne present
condition of unemployment: indeed.
many industries report that they can
| not get the men they need, while
| wages are fully UP to past levels or
higher. The requirements for farm
| help are absorbing surplus labor in
| practically all parts of the country.
There is some surplus of unskilled
workers in some centers, but this is
not different from the condition in
normal times. No reductions in wage
scales is now foreseen.
'One of the principal problems in
| the labor situation noted by thought
| full observers is the fact that clerks
and office employees. as well as other
workers receiving more or less fixed
| incomes, have not vet participated in
the advance in wages. Improvement
for these classes of workers will be
necessary II prices are to continue At
their present level. but will, OF course.
add correspondingly to the cost of
| business to the government
Returning soldiers are being rap
idly and steadily absorbed into busi-
i ness and the problem which for a time
| seemed TO threaten in this connection
| is now apparently minimized in all
lines. From the farming districts. par
ticularly, comes the report that the
| supply of labor is scanty and likely TO
prove more SO as business progresses. "
Government credit was reported in
good condition as evidenced by the
| high and rising market for liberty
bonds of practically all issues, particu-
| la-ly victory notes