Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-07-02
FEDERAL BODY
OPTIMISTIC IN
BUSINESS VIEW
Prospects of Prosperous
Year Now Positive Says
Reserve Board.

Washington, July 2.-Optimism
as TO the business outlook reported
today in the federal reserve board S
monthly statement of conditions
was tempered with the renewed
warning against undue speculation.
I'm nearly all the districts" the
boards Statement said, "the opinion
! is enteI tanned that the prospects
I for a successful and prosperous
year, with a very large output or
goods and almost unprecedented
! financial returns, both to manutac-
turers, agriculturists, and laborers
now are positive.
The posS oility that speculation
may be carried too far and may eX-
ert an injurious influence, aided
and furtheIed by the existence OF
free credit and speculative tend-
encies, appears as the principal Off
setting factor in the situation"
Apprehension Disappears.
Prices continued to rise through
out June, the boards statement
showed and enormously heavy de-
mand for goods for export had rem
deTed products in many lines
scarce In nearly all districts it was
reported business men had decided
| they could rely upon heavy demand
and continued sustained prices Tor
seine time to come, while a feeling
of apprehension entertained carry
il the year was disappearing, job
bers and retailers readily entering
into large commitments for fall and
winter.
Crops Doing Well.
The agricultural outlooks of the
early year are being more than
justified. All lines of crops are good
and in some cases exceeding past
records.
Live stock continues high In
price
Steel and iron experienced a dis
tinct turn for the better. The fuel
situation has been much below
normal with prospects of tight
situation next winter. Metal mining
industry was again improving.
Manufacturing likewise took a
strong upturn during June. Demand
for fine cotton goods exceeds pro-
ing at maximum capacity while
heavy demand from Europe has
drawn off much of the available
supply. Wool products are sold
ahead for months. Automobile man
ufacturing is running in many
plants at record levels.
Building ReVives.
Building shows continuation ~
the revival noted in previous
retailers has become general. There
is much trading in houses and
business property.
1.-The labor situation has now
reached a distinctly advanced stage
of full employment" the boards
statement said in commenting on
employment conditions. There Is
apparently no present condition o.
unemployment; indeed many in
dustries report they can not get the
men they need, while wages are
fully up to past levels or higher.
The requirements for farm help ar
absorbing surplus labor in prac-
tically all parts of the country.
There is some surplus of unskilleG
workers in some centers, but this
is not different from the condition
in normal times. No reduction IN
wage scales is now foreseen.
Office Workers Need More Pay.
zone of the principal problems ia
the labor situation noted b.
thoughtful observers is the fact
that clerks and office employees as
we'll as other workers receiving
more or less fixed incomes, have
not yet participated in the advance
in wages. Improvement for these
classes of workers will be neces-
sary if prices are to continue at
their present level, but will, Of
course. add correspondingly to the
cost of business to the government
Soldier Problem Being Solved.
Returning soldiers are being
rapidly and steadily absorbed into
business, and the problem which
for time seemed to threaten IN
this connection is now apparently
minimized in all drectons. From
the farming district particularly
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 Lib
erty bonds of practically all issues,
particularly Victory notes.