Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-07-03
TURN TO BETTER
. BUSINESS HAS
ALREADY BEGUN

WASHINGTON, July 1.-.Business
is passing through period of re-
adjustment and, in many instances,
of DEPRESSION the federal reserve
board declared last night in its June
nancial conditions of the country.
There is, however, every indica-
ton that this transition period will
not last 1ong-indeed, that the turn
toward new, conditions mas has a aa15 y
summary Of reports of its agents
who, taking the country as a whole,
found considerable variation in bust
ness conditions. 80
Reduction in retail prices, begun
in May, became universal durinS
June, it was said in explanation OF
the continued large volume of re-
tail trade. The price-cutttng move
ment, the board said, had been aided
by the refusal of the public to pay
of wholesale prices to maintain cur
rent levels was declared to have
been a cunteracting Influence. Elk
cept for clothing and SHOES, all es-
stuffs, show little indication of re-
duction, but luxuries and non-es-
sentials in many lines have been
distinctly cut" .
quite generally there is a ten
dency to settle down to a readjust-
L
ness upon a new level of prices and
demand the board asserted. Con
troll of credit and discrimination be-
tween non-essential and speculative
suits, although these are, reporte
gradually. The present price situa-
ton is unsettled, and Isl being close
ly watched. While some price. re-
porting agencies show a reduction,
others show increases"
Congestion of Goods
Although some improvement In
transportation was noted, the rail-
roads were said not to have yet over
gestion Of goods" was reported -
still exist. Frequent complaints OF
car shortage were reflected by the
agents reports, some indicating a
menacing shortage of coal, which
unless remedied, will seriously, in,
reports on manufacturing for the
month, however, ranged from ex'
IRENE optimism to equally extreme
| peSSimiSm.
Possibly the most encouraging
factor for the month was the i'm
provement of agricultural prospects
all crops except cotton showing i'm
| provement with seasonable weather
good distribution of rainfall and
reP piatfncgg Of fm fGSRs; in tn.
money situation was noted during
the month, although it was said tina
| conditions. in the financial centers
showed little change: Control o!
terially by the advanced interes
rate on treasury certificates of in
debtedness, and the higher rates o.
| discount at federal reserve banks.
Industrial operations during tht
month of May and the early part Of
Y Tuna continued IN S11ffnr from IN
certainty on account of the labor sit
| uation, according to the board. Lit
! tie relief has been obtained In con
riection with the labor situation OF
in some of the basic industries
notably transportation, has beer
| maintained.
strikes Hold up Business
| Sporadic strikes in many parts o!
| the country, particularly on the east
ern seaboard, have been a serious
deterrent to the movement of good!
and the continuance of manufacture
ing, the board asserted. Employees
are generally feeling that furthe
| ficulty on account of the. Resistance
| of the public to further increase IL
prices, the report said.
The worst condition respecting
crops was said to relate to cotton
it appearing from the Atlanta dis
already reported by the govern
ment have been but little improvet
and that the acreage will be small
with the yield low. III
The Atlanta reports referring :"
| general conditions, said that ther;
was a tendency on the part Of The
| public to refuse to pay 3exorbitan
prices and that the Volume, of re
tail business had decreased after be
ing stimulated by price cuts
| EsTbaro e on tha whnln - said th(
Atlanta report, mo uneasiness con
corning the future of business an:
industry 1t is becoming more anC
more apparent, however, that thu
process of deflation has begun"
The Richmond district reported
"the break down of the traffic sys
tenn and the wave Of price cuttins
| in retail stores were the outstanding
features" Widespread protes
against high prices. it was added
has had an unsettling effect in a.
lines of trade