The Barre daily times. (Barre, Vt.) 1897-1959, 1919-07-05
WARNING AGAINST
Z UNDUE SPECULATION
Issued by Federal Reserve Board in
Statement Expressing Optimism
as to Business Outlook.

Washington, d. c., July Optimism
day in the federal reserve boards month
ly statement of conditions, was tenn
pered with renewed warning against un-
due speculation.
I'm nearly all the districts" the boards
statement said, "the opinion is enter
tanned that the prospects for successful
and prosperous year, with very large
outputs of goods and almost UMPIRE
cedented financial returns both to manu-
faeturers, agriculturists and laborers,
now are, positive. The possibility that
speculation may be carried too far and
may exert an injurious influence; aided
and furthered by the existence of free
credit and speculative tendencies, APP
pears as the principal offsetting innu-
ence in the situation"
Prices continued to rise throughout
June, the boards statement showed, and
enormously heavy demand for goods for
export had rendered products in many
lines scarce. In nearly all districts il
was reported business men had decided
they could rely upon heavy demand and
time to come, while feeling of appre-
hension entertained early in the year
was disappearing, jobbers and retailers
readily entering into large commitments
for fall and winter
In many respects the agricultural pros
poets of the early spring are being more
than justified. Wheat, corn cotton, to-
bacco and Pacific coast crops will be har-
vested 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 pros
poets of tight situation next winter
Metal mining industry was again i'm
proving.
Manufacturing likewise took strong
upward turn during June. Demand for
fine cotton goods exceeds production.
Shoe factories are producing at maxi
mum capacity while heavy demand from
Europe has drawn off much of the avail
able supply, Wool products are sold
ahead for months. Automobile manufac-
turing is running in many plants at rec
ord levels.
Building shows continuation of the re-
vival noted in previous months. Heavy
buying of lumber by retailers has become
general There is much trading in houses
and business property.
"The labor situation has now reached
a distinctly advanced stage of full en-
poyment," the boards statement said
in commenting on employment condi-
tions.
There is apparently no present condi-
ton of unemployment; indeed many in
dustries report they cannot get the men
they need, while wages are fully up to
past levels or higher. The requirements
for farm help are absorbing surplus la
Dor in practically all parts Of the eoun-
try. There is some surplus of unskilled
workers in some centers, but this is not
different from the condition in normal
times No reduction in wage scales is
| now foreseen.
Cone of the principal problems in the
labor situation noted by thoughtful OBJ
servers is the fact that clerks and Office
employees as well as other workers re-
ceiving more or less fixed incomes, have
not yet participated in the advance in
wages. Improvement for these classes
of workers win be necessary if prices
are to continue at their present level
but will, of course, add correspondingly
to the cost of business to the govern
ment.
Returning soldiers are being rapidly
and steadily absorbed into business and
the problem which for time seemed to
threaten in this connection is now appar-
entity minimized. in all directions. From
the farming districts particularly comes
the report that the supply Of labor is
scanty and likely to prove more so as
business progresses"