The sun., 1919-08-02
RESERVE BOARD CAN
SEE HIGHER PRICES
Reports From IL Districts In.
dictate Few Chances for
Reductions.
EXPANSION IN INDUSTRY
Lack Of Raw Materials Affects
Some Lines-Fear of Labor
Surplus Removed.
EXPANSION IN INDUSTRY
Special Despatch to THs sur.


Special Despdtch to THs Sun,
WARRINGTON, Aug. 1.-While all agen.
dies of the Government united to-day for
determined fight against the high cost
Of living. the Federal Reserve Board, in
Its monthly report on business condI
lions. stated frankly that It saw littls
possibility OF reduction In prices and
that on the other hand there was every
indication Of a continued rise. The
boards review is based on business re-
ports from men familiar with the busI-
ness and Industrial situations in every
section of the country. 1t Indicated that
the price trend was decidedly upward.
The Reserve Board finds that on the
whole the general Industrial situation is
favorable and prospects are bright for
continued business activity In leading
lines. Its reports indicate that CON
fidence in a continuation OF business
activity has been maintained throughout
July and expansion in many lines of in
dustry has been noted.
In some fields the board sees a short
age of raw materials and in Others labor
troubles have been much in evidence. In
spite of this II seems the fear OF a labor
surplus has been entirely disspated and
business is looking forward to a prob
able labor shortage.
New England Trade Active.
It Is stated for District No. /:
There is apparently no abatement in
the general industrial activity in the New
England district. The raw material and
the labor unrest have made the problem
which our manufacturers face increas-
ingly difficult"
In District No. Commercial actiy-
ity, which commonly reaches its climax
in May. has been continued into the
early summer" and a generally favor
able outlook is noted.
In District No. 3 'the general bust
ness situation continues to show an In
creasing demand for merchandise at ad-
vancing prices and fundamental indus
tries operating on a larger SCALE" but
the abnormally high prices prevailing
are viewed with disquietude.
In District No. the continued opti-
mistic view is based on favorable con-
ditions prevailing in the steel industry
and In agriculture, although the present
high price level remains disturbing
element.
From District No. It is reported that
"the rising tide of activity continues in
all lines, and confidence in the general
ability of business may be regarded as
reestablished."
No recession in commodity prices
from the high levels which had been
reached the previous month is noted, but
instead further increases in many lines
have occurred.
In many districts the high prices have
not served to check demand. but the pos
sibility of obtaining goods seems to be
of greater moment to the buyer than
nrc On ban NJ he
great price increases which have taken
place In certain lines have made buyers
more cautious, care being taken not to
increase unduly the stocks acquired at
the present price level for fear that
decline In prices should occur. In gen.
eral. however. there Is a disposition TO
accept present price levels and to ex-
pect continuation Of the prevailing
level for some time to come.
Juno Cattle Receipts Decline.
Receipts of cattle during June were
| 1,122.7S2 head, compared with 1852 65
in May and 1.3s2,5O5 in June. 1918, the
| respective index numbers being Ill. 125
( and 1913. Receipts of hogs continue
| about stable, being 3,061,S3s during
June. compared with 3,049,235 during
| May and 2,369.501 during June, 1918.
| Receipts OF sheep were ], 116,0 03 in June,
compared with s34,613 in May and $780,
| 040 in June, 1918.
While the price of cattle has continued
| to decline the price OF hogs has moved
steadily upward. 1t is reported from the
| Kansas City district that the price of
hogs has increased each month this year
at the six principal markets in the dis
trict. the price on July IA being S2245,
or $500 a hundred weight higher than
| year ago.
In iron and steel It is felt that the tide
has now definitely turned. The well
known indices in the industry all point
to better conditions.
| Pig iron production has increased from
2,10s.056 tons in May to 2.114.s63 tons
during June. the index number for each
month being 81. Steel ingot production
has increased from 1.92e.o24 tons during
| May. corresponding to an index number
| of so. to 2,219,219 tons during June, cor
responding to an index number of 81,
while the untitled orders OF the United
States Steel Corporation at the close OF
June were Assesses tons. compared with
4,2s2,31o tons at the close Of May, the
respective index numbers being 90 and 81,
The steel industry is now reported 10
be operating at from 70 to IS per cent.
of capacity.
Reports from the Pittsburg district
show that conditions are improving
steadily. and at is an assured fact that
a distinct gain has been made" The
Birmingham district reports that In
quiries are brisk in the pig iron market.
stabiIizinR Steel Prices.
Prices appear TO have been stabilized
some inconspicuous concessions being re-
ported only IN plates and sheets. although
it Is stated the Independent producers
favor increased prices The CHIEF &C
tivity Is in lapweld tubes, due TO the in
creased oil and gas field operations;
sheets. wire. bars and tin plates. On tho
other hand. some OF the heavier lines are
still tagging, plates, rails and shapes in
particular. due to small railroad pur-
ohases and absence Of demand from
shipyards.
Demands from automobile and asri-
cultural implement manufacturers are
said to be heavy. while increased book
ings Of structural steel are reported with
expansion in the building trade. ZIG
iron sales In June in the Pittsburg DIS
trict were the heaviest since the arms.
tice. An increase in the export demand
is noted. Japan being in the market for
considerable quantities OF rails and snip