The sun., 1919-11-02
FEDERAL RESERVE
BOARD OPTIMISTIC
Finds Much Labor Unrest in
Country, But Conditions
Are Largely Local.
WARNS ON SPECULATION
Crops Good in Most Sections
and General Prosperity Is
Reflected in Reports.

WASHINGTON, Nov. 1.-The review of
general business and the financial condi-
tions prevailing in the United States
curing October made public to-day by
the Federal Reserve Board, is optimistic
on the whole. While directing attention
to the labor unrest, the report neverthe-
less describes 1t as actually local. A
note of warning that speculative activi-
ties are approaching dangerous levels is
contained in the review, which says in
part:
Great general prosperity throughout
the country. with strong demand for
commodities yerging at times upon reclS-
lessness in buying. is the general busi-
ness situation as reported by E'ederal
reserve agents in the several Federal
reserve districts for October. Crop re-
turns have been good in most sections,
and even where decline in output has
brought the total yield below the fore
casts, prices are reported as the highest
on record, the money returns being thus
largely augmented in spite of the de-
creased volume.
STAPLE commodities have moved sat
isfactoriiy to market during the month,
although the volume of grain thus
shipped is smaller than last year. while
shortage in some commodities. such as
sugar. has brought about unusual care
in the distribution of existing supplies.
Production of coal has been on the in
crease, while the demand has been un-
usually strong owing to the fears of
consumers concerning the prospect of
n strike to date from November /. There
has been no decline in general manu-
featuring, while prices continue firm
Autumn Trade Moves Upward.
THE upward movement of trade
usually noted in the autumn has been
in evidence during the month. Specu-
lative activity has been extensive
throughout the country in some quar-
tiers to further development of the
spirit of conservatism noted in the last
issue of the Federal ReSCrue Bulletin.
and in some important lines Of business
leading factors forecast the possibility
of shrinkage either of prices or of
volume of business or both
"A troublesome factor in the industrial
situation is seen in the existence of
widespread condition of Industrial and
social unrest, and while disturbances
growing out of strikes have not in
creased during the month. prospects for
growth in this direction have been
such as TO cause some anxiety.
General business conditions in dis
trict No. 1 (New England) continue to
reflect unprecedented prosperity as de-
fined in terms of high wages and pur-
chasing power, high prices, complete full
time employment in all lines of industry.
orders booked by manufacturers in some
cases far into 1920. projected plans for
expansion of plants and equipment, and
the absence of serious or widespread
dislocation Of working relationship be-
tween employer and employee in any of
the great basic industries, although in
dustrial unrest lies very close to the
surface
"In District No. . New York; the
financial situation is characterized by
heavy demand for funds and increase
in speculative activity, wholesale and re-
tail trade is in large volume and labor
conditions are distinctly unsettled. find
ing particular expression in several great
strikes.
TN District No (Philadelphia) the
demand for commodities OF all kinds
continues unabated, prices display great
firmness and labor troubles have not
proved very disturbing.