The Calhoun chronicle. [volume] (Grantsville, W. Va.) 1883-1984, 1920-06-10
PRESENT PRICES
ONLY temp ORARY
Federal Reserve Board Predicts
Continued General Reign of
High Prices.
FREIGHT JAM ONE OF CAUSES.
Labor Shortage and Difficulties on
Farm and in Factory and Small
Output Per Unit Tend to Keep
Prices Up.

ashingtOn.-Despite recent reduc-
tions in prices, little relief from the
general reign of high prices is seen by
the Federal Reserve Board in its
analysis of May business conditions.
The board expressed the view that
there has been no change in the un-
derlying conditions responsible for the
high cost of living.
Asserting that, while "stOre sales
and tendency to lower prices bears
witness to the presence of distributing
factors" which suggest the advent of
wide alienation i'm price levels, the
board declares it cannot accept the sit
uation as Il whole for its face value
The explanation is added that there
has been only slight increase in pro-
duction and there is no greater dis
position on the part of the general pub
lie to economiZe and invest than had
ruled heretofore
THE changes that have taken place,
therefore, the boards analysis says,
"cannot be looked upon as Indicating
modification of underlying conditions.
They may, however, afford Il basis for
changes in business relationships that
may broaden into more farreaching
alteration of the essential price struc-
ture"
Business in every section of the
country has suffered considerably from
the freight jam, which has prevented
normal movement of products to mar
kets Effects of the tie-up are noticed
in the agricultural districts as much as
the industrial areas, and that farmers
are not the smallest class which has
sought more bank help in the way of
credit as result.
Results of the boards action in the
direction of restricted loans already
has begun to be evident, according to
reports of the various reserve banks.
In addition to IL general reduction in
the value as well as volume of securi-
ties traded in the financial centers
there has been general revision of
interest rates affecting both CONNER
cial paper and call money, 1t is stated.
The labor situation during the month
has been one of the outstanding ele-
ments of doubt and difficulty" and is
one of the larger problems with which
the country is expected TO have to deal
with the rest of the summer. In addi-
tion to intense shortage of labor on
farms and at other points of primary
production, sporadic strikes have oc-
CURED in many lines of manufacturing.
notably the textile industry, Indicating
in the boards view continued unrest.
wages apparently have fallen be-
hind the advance i'm prices and the
cost of living" the statement con-
tinues. "The movement of labor from
farm TO city is continuing. Various de-
mands for higher wages have been
taken under advisement for the DUR
pose of bringing about compromise adj
justments. General complaint of low
efficiency or small output per unit of
labor is prevalent, and the difficulty of
getting skilled labor in some of the
more highly developed lines of manu-
facture is now very considerable"
The disturbing factors" have mate
rally affected many lines of manufac-
turing, although general manufacturing
continues i'm substantial volume. Can
collation. of orders i'm both cotton and
wool, by the jobbing and retail trade,
nave not yet reached large proportions,
but they are ALREADY noticeable"
Ihis has resulted i'm some manufac-
turers being forced to make conces-
sions to retailers" who were described
as being quite unsettled" The same
situation was said to obtain in the
leather market.