New-York tribune., 1919-10-05
Trade Volume Kent
up, Despite Strike
And Rising Prices
Federal Reserve Board Saws
Business Has Been Able to
Withstand Attacks and
General Outlook Is Good

0AAACSo AAdS Dccn AOIe TO
Withstand Attacks and
General Outlook Is Good
WASHINGTON, Oct. 4.-The Federal
Reserve Board statement on business
conditions issued TODAY said in mart
During the month of Septemher Ia.
Dor unrest has become the most nromi-
nent factor in the business situation
Prevailing unrest found expression in
various forms, including demands for
improved working conditions, increase ID
wages and local strikes, and found its
cu!m!natlon in the strike in the steel
industry. 0'00'
I'm spite of the resulting uncertainty
INJECTED into the business situation. the
customary autumnal swell in the val
ume OF business is noted. The high
retail prices prevailing do not appear as
yet to have q noticeable effect in check
ing consumption, and the demand for
nnigher n grade products continues. While
the oihclal Wholesale price index num-
ger SHOWS further rise from 219 in
July 70 222 IN August, some readjust-
menus IN wholesale prices have taken
place during the present month. involv-
ing price reductions in several leading
foodstufs and in various cotton tex,
tiles, hides and other lines, in which
ad''"rros hod l+hor.o T., +
marked. A spirit Of conservatism, how
eNe., lnAniAes.s ltse.. ~ .4..4.. ,..u. 5.
ana greater attention is paid to the
probable future trend Of prices.
Crops Below Expectations
I'm agriculture the exceptional
promise OF the spring has non oeln u
hlled. In particular, the winter wheat
crop raoE mas mas been n, conslderab N Glow ex-
made up by the larger yield and har-
vest of corn. The official forecast for
cotton is less favorable than last
month, indicating an unusually late
crop: The credit demand for cror
moving purposes has been less than
anticipated IN many quarters and was
met easily by the local banks with the
assistance Of the Federal Reserve
banks, the latter reporting subs stantial
increases during the month of discounts
secured by commercial paper, and cor
responding increases in their note cir
culatlon. Conditions in the New York
money market have become easier, but
no great increase in the volume of
speculation is noted. For the present
the labor difficulty overshadows in i'm
portance all other factors in the busi-
ness situation, but feeling Of conf
dence generally prevails that a salts
factory solution Of the present troubles
will be found.
"Thc labor problem has become the
paramount issue during the present
month, the question of the cost of lv-
ing receding from it's former position
OF prime Importance. Reports indicate
desire of the workers to secure a
larger share in the returns Of industry
demands for increased wages being ac-
companied by demands for shorter
hours. At the sane time, however
public opinion appears to be awakening
to the reaction which increased wages
and decreased output may have upor
commodity prices, and the vicious cir
Gle which may result, production has
been hindered in various lines in which
the demand is greatest, both by {
shortening Of hours, by decreased eff
cheney and by disinclination in ccrtair
cases to work more than part time.
"The labor unrest, exhibited fre
Quently heretofore by new demands q:
to wages, hours and conditions of EN-
ploymcnt and by strikes, actual o.
threatened, in various industries, n!
we'll as by the agitation against high
prices, has now found expression or
widespread scale in the presen
strike in the steel industry, and ha:
forced itself sharply upon the public
attention. 1t has been generally hopec
in the industry that Intervention by
the President would result in post
ponement of the call for the strike
pending the conference of labor anG
capital called by the President to NEE,
in Washington on October s, at which
the question could be thoroughly dis
cussed.
Commodity prices reached new high
levels during the month of August
though since the middle of the month
downward movement appears to have
set in affecting the prices of some lead
ing staples. The increase in prices
while again general, was greater for
consumers and producers goods than
for raw materials.
Tobacco Crop Damaged.
deficiency of rainfall has damaged
tobacco in Kentucky and Ohio, and "the
outlook is rather discouraging." while
in the Carolnas the crop ranges "from
extra good in the interior to very poor
in extreme extreme eastern counties. "
''Ir is reported from Kansas City and
Minneapolis that flour mills are oper-
with the increase in receipts of
raw sugar, maltngs have again in
creased, although the scarcity prev-
ously remarked continues and the situa-
tion in this industry is reported to re-
fleet the uncertainty as to the condi-
tions under which the new crop will
be marketed.
"Rcceipts of cattle at Is primary
markets increased slightly, from 1921
eS1 hear during July to 1,541, 1873 head
during August, as compared with 1,5SS,-
5o3 head during August.
"The outstanding feature in the iron
and steel industry has. of course, been
the labor situation. Up to the actual
day of the strike, feeling prevailed
that 1T would be avoided and the in
dustry as a whole, as we'll as consum-
ers, viewed the situation calmly.
While there was decrease in new
buying during the first half Of the
month, as conditions became unset
tied, the further increase in production
|.