Omaha daily bee., 1919-07-03
RESERVE BOARD
WARNS AGAINST
UNDUE CHANCES
Possibility That Speculation
May Exert Injurious InfIu.
enee On Trade Prompts
Warning.


to the business outlook reported to-
day in the federal reserve boards
monthly statement of conditions
was tempered with renewed warning
against undue speculation.
"In nearly all the districts" the
boards statement said, "the opinion
is entertained that the prospects for
a successful and prosperous year,
with very large output of goods and
almost unprecedented financial re-
turns both to manufacturers, agri4
culturists and laborers now are posi-
tive. The possibility that specula-
tion may be carried too far and may
exert an injurious influence, aided
and furthered by the existence of
free credit and speculative tenden-
cies, appears as the principal Offset
ting influence in the situation"
Prices Rise During June.
Prices continued to rise through
out June, the boards statement
showed, and enormously heavy de-
mand for goods for export had REM
dered products in many lines scarce.
In nearly all districts it was report
ed business men had decided they
could rely upon heavy demand and
continuously sustained prices for-
some time to come, while telling
of apprehension entertained early in
the year was disappearing, jobbers
and retailers readily entering into
large commitments for fall and win
ter.
In many respects the agricultural
prospects Of the early spring are
being more than justified. Wheat,
corn, cotton, tobacco and Pacific
coast crops will be harvested in
record quantities. Live stock con-
tinues high in price. Steel and iron
experienced 4 distinct turn for the
better. The fuel situation has been
much below normal with prospects
of a tight situation next winter
Metal mining industry was again
improving.
Cotton Demands Excessive
Manufacturing likewise took 4
strong upward turn during June.
Demand for fine cotton goods ex-
ceeds production. Shoe factories
are producing at maximum capacity,
while heavy demand from Europe
has drawn off much of the available
supply. Wool products are sold
ahead for months. Automobile
manufacturing is running in many
plants at record levels.
Building shows continuation of the
revival noted in previous months.
Heavy buying of lumber by retailers
has become general. There is much
trading in houses and business prop
crty.
Labor Situation Satisfactory.
"The labor situation has now
reached 4 distinctly advanced stage
Of full employment" the boards
statement said in commenting on
employment conditions.
There is apparently no present
condition of unemployment; indeed,
many industries 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 labor in practical
ly all parts of the country. There is
some surplus Of rnskilled workers
in some centers, but this is not diff
ferent from the condition in normal
times. No reduction in wage scales
is now foreseen.
Advocate Increase for Clerks.
"One Of the principal problems in
the labor situation, noted by
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 par
ticipated in the advance in wages.
Improvement for these classes of
workers will be necessary if prices
are to continue at their present
level, but will, of course, add CORE
spondingly to the cost of business to
the government.
Returning soldiers are being rap
idly and steadily absorbed into bust
ness and the problem which for a
time seemed to threaten in this con-
nection is now apparently minimized
in all directions. From the farming
districts particularly comes the re-
port that the supply of labor is
scanty and likely to prove more 50
as business progresses"
Government credit was reported
in good condition, as evidenced by
the high and rising market for liber-
ty bonds of practically all issues,
particularly Victory notes.