Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-04-01
EXTRAVAGANT
ERA SHOWS
SIGNS OF
ENDING
Post War Period of Reckless
Buying Is Halted Accord
ing to Reports to Federal
Reserve Banks.
HESITATION OF HIGH
PRICES Is OBSERVED
Peak Has Been Reached and
Recession Is Looked For;
Housing Situation Every
where Very Acute.
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Washington, March 3t.-Nation-
wide reports from federal reserve
bank officials, made public tonight,
disclose their opinion that the post
war era of extravaganza and reck-
less buying" by the public is near
| ing its end.
! "A hesitation. il not an actual
recession of prices is noted and
I the federal reserve boards state
ment summarizes its advices as in
dicatlng a generally more hopeful
view of the couutry's business con-
ditlon than for several months.
While the price changes were
shown by the board not to be uni-
versal, they were nevertheless re-
garded as positive and of impor-
tance for reckoning what the inn
mediate future holds.
Relief from the high prices for
the consumer will nor be complete
ly obtained until present stocks are
absorbed in practically all lines, ac-
cording to the boards view. Man
utacturers, everywhere, however.
We're shown to hold the view that
the peak of high prices has been
reached and to expect gradual re-
cession.
In the clothing trade particular
ly, the board said there was a
marked tendency of the public to
make the old supplies last longer
and to refuse to pay exorbitant
prices. This phase can mean only
that an awakening has come, the
statement said. and that many peo-
pie have arrived at the conclusion
tht they are themselves raspqasibis
for continuing high ,raage ut
prices.
Wholesalers in the dry goods
trade, to some extent, have taken d.
"commendatory attitude" and ara
discouraging their customers from
placing heavy fall orders. This has
served to slacken demand and ere
ate feeling that lower prices will
follow.
The reports do not give encour-
agement concerning a price reduc-
ton In shoes. There was, however,
a wide divergence of opinion as to
what shoe and leather prices will
do.
Eastern seaboard' cities reported
a 'piling up of commodities" on
this side of the Atlantic, The ex-
change situation was beginning to
reflect itself on the export market
as well as through general reduc-
ton by Europeans in their foreign
buying, II was noted.
Business and financial develop
ments during March also were
by confusion and lack OF
of opinion. reports from
the several reserve districts showed.
But throughout the detailed OBJ
servations of these officials there
was distinctly optimistic tone.
Summed up, 1t was:
1.-THE outlook for the spring sea-
son, both industrially and agricu-
turally, Is excellent. But modifying
factors in the situation here are an
Inadequacy of labor supply and
shortage OF various kinds of build
ing material as well as borrowing
facilities of banks"
Officials say that the full mem
ing of the changed attitude of the
public probably would, show defi-
mite results so slowly as to be al
most imperceptible They ex-
planed that 1t was "a step in the
right direction" and that its value
was increased because there had
been no appreciable letting down in
.he volume of legitimate business.
The housing situation continued
acute throughout the country, part \
y as a result of labor conditions
out more largely because thousands
IF families are deserving the farms
'or what they believe are greater
opportunities" In the cities. There
Capital is slow to engage
n new building ventures because
If the "unfavorable conditions of
axation." This. of course, applies
o general construction work as
we'll as to housing in the limited
sense, the statement said.
Production conditions the cofi1l-
ry over" the statement continued,
give every reason for encourages
nent with reference to actual in
iustrial and agricultural potential
ties. The crop outlook. so far as
'an be judged at this season, is
hopeful. There is a substantial de-
sree of harmony between capital
md labor as indicated by small un-
n
"The difficulties in sight are due
o conditions of relative under pro- .
Iuction or decrease of production
esulting from lessened activity of
10Th capital and labor. problems
rising out of heavy taxation and
measures resulting from the one
ided working of the. tax laws. y
,hile, financially speaking. caution
nd conservatism are called for aud
he efforts to restrict the volume
f credit have been only partially
uccessful. As q result high inter-
st rates and relative scarcity OF
unds will continue to prevail dur
lg the period in which country is 4
to extend its produc-
We capacity and to overcome the
elative loss of progress resulting
rom limitations upon investment
n n production - m