The sun., 1919-10-06
UNREST IS BIGGEST
BUSINESS FACTOR
Labor Disturbances Culminate
in Strike of Employees of
Steel Companies.
Special pespatcA 10 TIE suN.

were reported to the board, and they had
a distinctly unsettling influence. De-
spite that factor. however. business has
been going forward actively. and there
was the usual fall increase. During this
month, the board declares, the labor
situation has become the most promi-
nent factor in the business situation,
supplanting high prices in that regard.
1t is noted that high retail prices have
not tended to check consumption and
that the demand for luxuries and all
goods of the better grades continues
unabated.
General manufacturing throughout the
country continues active, IL is reported.
but some markets appear quiet because
some manufacturers are well sold ahead
of present requirements.
Business Goes Forward.
During September" says the report.
Tabor unrest has become the most
prominent factor in the business situa-
tton. Prevailing unrest found express
sion in various FORMS. including demands
for improved working conditions, in
creased wages and local strikes, and
found its elimination in the strike in
the steel industry. In spite OF the re-
sulting uncertainty injected into the
business situation. the customary au-
tumnal swell in the volume OF business
is noted. The high retail prices pre-
yailing do not appear as Yet to have a
noticeable effect in checking consumption
and demand for higher grade products
continues. While the official wholesale
price index number shows further
rise from 2is in July to 222 in August
some readjustments in wholesale prices
ttrfn
month. involving price reductions in sew
eral leading foodstuffs and in various
cotton textiles, hides and other lines,
in which advances had been most marked.
A spirit of conservatism. however. mani
tests itself in various trades and greater
attention is paid to the probable future
trend of prices.
'In agriculture the exceptional prom
ise of the spring has not been fulhlled
In particular the winter wheat crop has
been considerably below expectations
This Is partly made up by the larger
Yield and havest Of corn. The official
forecast for cotton is less favorable than
last month. indicating an unusually late
crop The credit demand for crop NOV
ing purposes has been less heavy than
was anticipated in many quarters and
was easily met by the local banks With
the assistance of the Federal Reserve
Banks, the latter reporting substantial
increases during the month OF discounts
secured by commercial paper and cor
responding increases In their note CIR
culation. Conditions In the New York
money market have become easNr, but
no great Increase In the volume OF specu-
lation is noted. For the present the
labor difficulty overshadows In impor-
tance all other factors in the business
situation, hut a feeling of confidence
generally prevails that satisfactory
solution of the present troubles Will De
found.
REPORTS received from Federal Re-
serve agents as of September 20 indi=
Gated little change in the business situa-
tion. Although the labor situation was
generally remarked as the principal fac
tor in rendering conditions somewhat
unsettled, the feeling was expressed that
there was growing realization on the
part of the workmen that their interests
are bound up with the interests OF the
community as a whole and that In
creased efficiency. resulting in greater
productivity, is imperative.
"The labor problem has become the
paramount issue during the present
month. the question OF the cost OF living
receding from its former position OF
prime Importance. Reports indicate a
desire of the workers to secure a larger
share in the returns of industry de-
| mands for increased wages being accom-
panied by demands for shorter hours
| At the same time public opinion appears
| to be awakening to the reaction which
| Increased wages and decreased output
may have upon commodity prices and
| the vicious circle which may result
Production has been hindered in various
f,N. 4 l, nj 1Nxr a
shortening OF hours, decreased efficiency
and disinclination in certain cases &c
work more than part time. The labor
unrest, exhibited frequently heretofore
| by new demands as to wages. hours ant
| conditions OF employment and by strikes
! actual or threatened. in various indus
dries as we'll as by agitation against
| high prices, has found expression in 6
widespread scale in the present strike
in the steel industry and has forced It.
self sharply upon the public attention
Car Shortage Hampers.
although the railroad shopmen hav,
returned to work. the transportation sit
uation continues to occupy prominen
! position in public discussion in conse
ture operation of the railways and cal
shortage which Is hampering bushes.
activity.
Commodity prices reached new higl
levels during August. though since th'
middle OF the month a downward move
ment appears to have set in, affecting
the prices of some leading staples. The
general index number OF the Bureau OF
Labor Statistics for that month standt
at 2y2, as compared with 219 for July
The increase In prices. while again gen.
ersl was greater for the groups OF con
sumers, and producers goods than for
the group of raw materials, the index
number for consumers goods increa sing
from 230 TO 24l. for producers' goods