The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-09-05
DROP IN LIVING
COST ALREADY ON.
REPORT ASSERTS
Reserve Boards Statement
Says Reaction From High
Prices Has Set in-Food,
Clothing and Shoes Down.

WASHINGTON, Sept. 5.-Reaction
from the high price level established
during the war has set in, says the fed
eral reserve boards review OF business
conditions in August. Not only are
some foodstuffs declining in cost to the
consumer, but the price Of wearing ap-
parel. such as textiles and shoes. also
a been affected, the review a
Business continues at an Extremely
high level" and confidence of a salts
factory solution of the wage and price
problems was reported from all sections
OF the country.
During August, factors which had
not hitherto arrested much attention
exercised great influence on the busi-
ness situation" the boards statement
SAID; Reference is made, Of course,
10 the problem of commodity prices. In
particular those going to make up the
cost Of living, and to the consequent
condition Of labor unrest. Whereas
previously emphasis had been placed
upon the great activity displayed by
business, the problem of price read
Justment and the difficulties connected
with II now bulk largest. Discussion
In connection with this readjustment Is
particularly centered pom the problem
OF the relation of wages and prices.
"A movement toward lower prices APP
pears to be In process in certain d.
rections, prices OF certain foodstuffs
are declining, and q feeling Of con-
seryatism is noticeable in certain lines,
such as the textile and shoe industries,
In which price advances had previous
ly been most marked, 'resales' at some
concession in price being reported.
Reports from the federal reserve
agents generally indicate q feeling of
confidence that a satisfactory solution
| NJ tka V.p1.Ra aAA Nnn.a D.aAInna. ,.gtI
he reached. The actual volume Of bust
ness transacted continues al an ex-
tremely high level for the present sea-
son of the year, although t~ransporta-
tion difficulties and shortage Of labor
have been hamperlng factors in certain
lines, The agricultural outlook on the
whole Is distinctly less favorable than
a month ago, although the large acre
Sown In certain cases will eompen-
safe for decreased Yield per acre. Cot
ton, in particular, Ii in poor condt-
ton.
'Reflectlng the feeling Of uncertainty
which prevails, the volume of specula-
ton has abated, and declines In the
price OF securities have occurred. The
general business situation, however, Is
at bottom strong"
Discussing labor conditions, the board
recorded that reports from the major
ity Of districts designate the situations
as unsettled" In certain districts a
decreasing efficiency OF labor is re-
marked, which Is ascribed to relaxa-
ton from wartime pressure for MAXI
mum production. At the same time ad-
ditional demands made by the workers
have been granted, In large part due
TO the general shortage of labor which
exists In many sections.
Reports by individual districts in
cluded the following:
Richmond-Trade and commerce con-
tine uhighly active, without apparent
pause and without any material recess
sion as yet In prices, but there Is rather
a suppressed feeling of uncertainty
pending the eventual solution OF pres
ent problems,
Atianta-The agricultural situation II
poor, but there has been little OF the
usual slackening Of commercial &C.
, tivity, although the agitation OF the
high cost OF living has caused some
merchants to exercise caution In buy
ing.
st, Louls-Although no marked de-
crease In the volume OF business is APP
parent, business In some lines has
tended TO become unsettled, and there
In evidence OF uneasiness In some quar-
ters.
Dallas-General business conditions
have apparently not been affected to
any great extent by unfavorable fac
tors.