Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-08-01
F0RESEES NORE[|EF
FROM HIGH PRICES
Federal Reserve Boards
Monthly Review Says Con-
tinuation Is Expected.
BUSINESS OUTLOOK GOOD

No relief from present high prices
is forecast in the federal reserve
boards monthly review Of business
conditions issued today, which notes
that July saw further increases in
many lines.
I'm general" the review said. there
is disposition to accept present price
levels and to expect continuation Of
the prevailing level for some time to
come"
Declares Activity Continues Here.
In the Richmond district, of which
states the rising tide of activity con-
tinues in all lines and confidence In
the general stability of business my
be regarded as re-established."
In many districts high prices have
not served to check demand, but the
possibility Of obtaining goods was
found to be of greater moment to the
buyer than the price fixed. On the
other hand, the board said, the very
great" price increases which ,fasa nave
made buyers more cautious, care be-
ing taken not to increase unduly
stocks acquired at the present price
level for fear a decline might occur.
Confidence Sustained.
Continued high prices, along with
constant growth in trade. both whole
sale and retail. and increased activity
in some of the basic industries. sus rus
situation and led to expansion In
many lines. Almost the only com.
plants heard concern shortage OF
raw materials, and, in few districts,
labor troubles, although a majority OF
the districts report normal labor con-
dftiona
Instead Of fear Of unemployment,
which has been expressed during the
early part Of the year." the board said.
1.-THE reports received manifest the fear
Of an impending shortage OF lanor.
The exodus of alien workers was blamed
in part.
Agricultural Outlook Good.
The agricultural outlook on the whole
was reported favorable. with fndica-
lions that the cotton crop would be
much shorter than previously indicated
Manufacturing continues active, marked
advances in prices having occurred IN
cotton goods, with many mills oversoid
Export orders were said to be large.
Raw wool still is In heavy demand and
revival in building has continued.
Banking Situation Sound.
Turning to the financial situation, the
board declared that while speculation
continued at an unprecedentedly high
level, an investment demand for stocks
has revealed itself. leading to the with
drawal of an unusual amount OF shares
from the market. The banking situa-
ton was reported sound. credit and col
lection conditions good and failures
small and few.
Canditious in Districts.
Conditions by districts were described
as follows:
Boston: There is apparently no
tivity in the New England district. The
raw material market and the labor I'M
rest have made the problem which our
manufacturers face increasingly diff
cult"
New York: Commercial activity
which commonly reaches its climax in
May has been continued into the early
summer" and "a generally favorable
outlook is noteda
Philadelphia. THE general business
situation continues to show an fncreas-
ing demand for. merchandise at advance
operating on a larger scale" but the
abnormally high prices prevailing are
viewed with disquietude.
Cleveland: Continued optimism is
based upon favorable conditions pre-
vailing in the steel industry and in
agriculture, although the present high
price level remains a disturbing ele-
ment.
Atlanta: Practically all lines of
business increasingly active" al
though the agricultural outlook. es-
pecially as regards cotton, is. not as
encouraging as a month ago.
Chicago: While merchandise and
manufacturing are active. there has
developed "a rather decided feeling
of labor unrest, especially in Chicago
st. Louis: The business situation
continues excellent; wholesalers and
retailers in most lines are doing an
active, in some cases a record, bust
ness. There are complaints of diff
Guilty in obtaining raw materials and
skilled labor"
Minneapolis: The whole situation is
summed up as good, although there
are some discouraging spots in the
district"
Kansas City: Business and indus
trial activity which prevailed in the
month of June is extending through
July and there L. no indication Of a
many weeks or months to come
Dallas: There has been practically
no summer dullness in trade and
financial circles this year. this un-
usual condition being attributable
largely to the petroleum industry,
which has exerted q very favorable
influence on trade"
San Francisco: July estimates of
agricultural production are slightly
below June figures, while industrial
activity is increasing"