Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-05-31
GENERAL PUBLIC
SHOWS No GREAT
DISPOSITION To
BE ECONOMICAL
Despite Recent Price Reduc-
tions, Little Relief for
Consumers is Seen BY
Federal Reserve Board.
BUSINESS SUFFERING
FROM FREIGHT TlE-UP
In Addition to a Shortage
of Farm Labor, Strikes
Have Occurred, IndiCat-
ina Continued Unrest.
10y MORNING JOURNAL SPECIAL LEASED wRsl

.sY MORNING JOURNAL SPECIAL LEASED wlRsl I
Washington. Nav 30.-Despite
the recent reductions in prices lit
tie relief from the General reign OF
high prices is seen bv the federal
reserve board in its analysis OF May
business conditions, made public
tonight.
TRe board expressed the view
that there has been no change IN
the underlying conditions responsi-
BILE for the high cost of living.
Asserting that while store sales
are tendency to lower prices bear
witness to the presence of dis
turbing factors" which suggest the
advent of wide alteration in price
levels, the board declares 1t cannot
accept the situation as a whole for
added that there has been only a
slight increase in production and
there has been no great disposition
on the part of general public, to
economic, and invest than had
ruled heretofore.
"The changes that have taken
place, therefore," the boards an
alysis SAYS, cannot be looked upon
as indicating a modification of un-
derlying conditions, They may,
however, afford basis for changes
in business relationships that may
broaden into more far-reaching al
terations of the essential structure"
Business Has Suffered.
Business in every section of the
country has suffered considerably
from the freight Jam which has pre-
vented NAL movement OF pred
ucts to markets. Effects OF the tie
up are noticed in the agricultural
districts as much as the Industrial
aGeas, and farms are not the small
est class which has sought more
bank help in the way of credit as
q result.
Results of the boards action in
the direction of restricted loans al
ready has begun to be evident, ac-
cording to reports of the various
reserve banks. In addition to
general reduction in the value as
well as volume of securities traded
in the financial centers, there has
been a general revision of interest
rates affecting both commercial
paper and call money, it Is stated;
The labor situation during the
month has been one of the out
standing elements of doubt and
djfficuity" and is one of the larger
problems with which the country is
expected to have to deal the rest of
the summer. In addition to intense
shortage of labor on farms and al
other points of primary production.
sporadic strikes have occurred in
manv lines of manufacturing nota-
bly, the textile industry, indicating
in the boards view, continued un-
rest
Labor Flockino To Cities.
"Wages, arnarentlv have fallen
behind the advance in prices and
the cost of living" the statement
continues "The movement of labor
from farm to citv is continuing,
Various demands for higher wages
have been taken under Amusement
for the purpose of bringing about
compromise. adjustments Genera
complaint of low efficiency or small
output per unit of labor is preva-
lent and the difficulty of getting
skilled labor in some OF. the more
highly developed lines of manufac-
ture is now very considerable"
The disturbing factors have ma
terially affected many lines of man.
rfacturing. although general man
ufacturing continues in substantial
volume. Cancellations of orders in
both cotton and wool, by the job
bing and retail trade, have not vet
reached large proportions, but they
are already noticeable" This has
resulted in some manufacturers be-
ing forced to make concessions to
retailers" who were described as
being quite unsettled" The same
situation was said to obtain in the
leather trade.
Conditions Bv Districts.
With respect to conditions local
to the various reserve districts the
review said:
Number / (Boston) There is
noted a trend towr~1 greater dis
elimination and economy in buvir
hut there is also notea very great
difficulty in the way of actual de-
flation.
Number 2 New YorkD-Price
reductions are noted in retail stores.
A growth in the cost of doing bust
ness, great reduction in securities
prices, but nevertheless a continued
high demand for goods. and activity
Number 8 philadelphia THE
congestion of freight, quietet
state of the markets and large
relative public demand for medium
and lower priced goods tend to
alter in some respects the general
drift Of development.
Number 4 (Cleveland)--An or