Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-02-02
PREDICTS BREAK IN PRICES
HARVARD ECONOMIC REVIEW
SEES DOWNWARD TENDENCY
No Violent Recession Expected. hut
Statistics Point To Lower Prices
I'm Near Future.

CAMBRIDGE, MASS, Feb 1.-.Thc
Harvard committee on economic re-
search appointed by Harvard unNer-
sity TO make special studies or econom-
g conditions. has Just announced that
a. business activity. which has been
in progress since last ApTil. and per-
Tune, however. the committee states
the basis OF the November ana
pecombcr figures ii would b" prema-
lure TO conclude that Il violent recess
son in commodity prices Is probable
The committee was appointed by
Harvard UNIVERSITY. i'm 1917 TO ASS :
economic problems whlch uuderlic
modern commerce. and finance. Il pro
Nides satisfied Information To- Egd-
cral t'crNo banks, for h2-E." Us houses
and largo corporations and Include
among !tS publications e review OF
economic statistics which contains
The committee bases its present fore
cast upon sLatiSlvai mHtcrial r%pry-
bank eicariugS. tho volume or sales on
tho New Nork stock EXCHANGE. the
prices Of iudustrial stocks and analg-
SIS 81 tho banking ana trade situation.
domestic ana foreign.
Farmers to Progress.
Professor Warren NJ Persons. odi:or
o. the statistical service published by 4
the committee. says chat the statistics
tina he farmers VIII continue 20 pros.
nyr IN 1890 and That the prosperity Of
this industry Nil contribute 10 that Of
az others durinS the c"mtn- year
declares, finds American WInu,HctUr-
ing industries IN sound and prosper
"The tigh,ncss Of the money market
an the announced policy. ALREADY IL
nururated, Of the Federal Reserve
have caused many observers to nave
save .m!ss!yin,s for the in2ncial out:
iook for 1870" he SAYS "l4Siead. Of
e"al Reserve Board should, in fact be
regarded as a favorable OMEN Hich
interest rates are the main reliance
TO- protecting bank reserves. and they
spell not disaster. but safety. PROV dad +
they are applied in time, Control 90
interest rates is the safe and effective
rs we now face. and IL is % NJ hoped
that nothing. not even needs OF the
Knitted states Treasury, win divert the
sane and conservative course
Large Demand for Credit.
The outlook for 1920 is for = COM
tnuanSe OF large demand for credit
loans will eventually tend 10 check
tn upward movement OF comm dity
prices a they nave already chccncl
the upward trend OF security prices
and the volume OF speculation on the
New York stock ENChIHEc.'
OF the belief OF some business men
chat the whole economic situation now
is abnormal, the committee says: "Ab-
normsl ii Certainly i in many respects.
Prices are very niEa; there has been
great expansion Of bank credit; ~
trayagant expenditure. both public and
private, is found on every hand ana
our Ebnormal!y large export trade IS
likely TO suffer cu.;ailment !
y year az? many observers expected
= violent drop III prices and 4 crisis
in l9le. Today there seems 20 be less
reason for expecting such developments
ia 1920"
The Harvard committee on economic
research il planning TO publish this
year monographs cmhodyius special
studies o: the principal economic con-
ditlons and forces that viii affect
prices and trade throughout the world
during the next i've years, The COM;
mittee also VIII study and classify the
annual statistics Of Industrial com
mcrce and finance and will construct
trade indices based upon them The
committee is composed OF universitv
professors and men Of affairs. with
charles Bullock, professor OF Geo.
Monies at Harvard, as it's chairman