, 1920-11-04
SHOWS
WAR RECOVERY
CONDITIONS STABILiZING WITH
ASSURANCE OF FUTURE
ACTIVITIES.
SLOW
PRICE REVISIoNS STILL GOING
ON IN NEARLY ALL LINES
OF BUSINESS.
Western Newspaper Union News Service.

Western Newspaper Union News Service.
Washington. Nov. 1.-Recovery from
war and postwar conditions ie pro
ceeding apaee in the United States"
and the natural forces in evidence
which make for sterilization carry
assurances for the future" the fed
eral reserve board declared in its
monthly review of business conditions.
Although the REIMBURSEMENT process
has been marked by uncertainty and
some suspension of activity, the board
described the economic and business
situation as u whole as one showing
much inherent strength and an abil-
ity to attain a position of relative sta
bility through al orderly transition"
1t argued that he necessary changes
in the direction of normal conditions
would be accomplished without great
disturbance niles unforeseen factors
entered the process.
price revisions in textile lines and
In other branches of wearing apparel,
as well as in numerous staple com
modities," said the board, have been
the outstanding elements in the situa-
ton just as during the preceding
month.
Caution in buying, due to a belief
that price reimbursement is not yet
over, has been a noteworthy factor
and in some quarters has tended to
slow down the activity of retail trade,
although more apparent in the whole
sale trade Crnn vfaldc hQun on tho
whole Justified the expectation ex-
pressed at the opening of the month.
Banking reserves have held their wi
during the month and there has been
a steady Improvement in the liquidity
Of paper.
Labor is less fully employed. Not
withstanding some sporadic cuts in
wages here and there, the general
position is about as good as it has
been so far as actual payments or
rates of wages are concerned"
While the retail trade reported a
moderate increase in net sales as
compared with last fall, the usual fall
activity and buying was said to be not
In evidence.
The manufa cturer has felt the with
holding of orders by the retailers and,
according to reports, has not been
able to operate OF full time in many
lines of trade because of a lack of
orders. Cotton mills were mentioned
specifically as having been hard hit
by the s~lackening of retail orders,
while new business in the iron and
steel industry has actually decreased
'In the shoe and leather industry
the board found conditions similar to
these in the cotton trade and other
textiles. The leather interests are
facing imminent shutdown in many
places because of the heavy decline in
buying. The reports showed the con-
dltions in western reserve districts as
summarized by the reserve agents az
follows:
"Chicago said the business situation
Is still confused by counter currents
of opinion with buying somewhat re-
strlcted and price reimbursement pre-
senting some problems.
"St. Louis finds fundamental condi-
tons satisfactory, but in all lines there
is hesitancy in purchasing goods for
future requirements. Uncertainty as
to future prices is the chief obstacle
in the way of recovery.
Reports from almost all sections in
dicated that the retailer had deter
mined to await further developments
before renewing his stocks heavily.
The outstanding orders were reported
to be small and the general purchas-
ing activity of the retail merchant
was described as Every conservative"
Minneapolis reports crops large,
with grain moving steadily to market
and railroad efficiency improved. How
ever, there have been declines in cop
per and iron products, in building per-
mits and in lumber output.
kansas City reports that price re-
cession and establishments have been
steady but without serious dearrange-
ments, while retail trade and consump-
ton are proceeding quietly and labor
outlook is favorable"