The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-05-05

FINANCE - japanese financial
crisis predicted IN this column. Feb.
ruary IS. has occurred. tpnes stock
market here. but FUN effects have
not yet been felt. In all fundsment
al characteristics Japanese financial
and economic situation resembles
that now existing In the United
Statrs-Sreat paper prosperity.
Wild speculation. uncurhed pro<itecr.
Ing. intense unrest. apparently un.
limited demand for products. cur.
rcncy initiation. etc.
Federal rcxerve system ana hanks
generally win soon be In conflict
with usury laws OF states. In tina.
jority Of states s per cent Is legal
limit. while federal reserve rate on
commercial paper Is nov per cent.
Bank OF England rate has been
raised 10 per cent and federal re.
serve system may soon follow suit
Understood federal reserve authori.
ties do not consider themselves linn.
tied by usury laws. but great con.
fusion can be produced II borrowers
should take refuge behind uHury
laws. usury laws have never been
enforced. In 1916 investigation
showed that most national hanks In
clear defiance OF law were charging
usurious rates Comptroller WILLIAMS
forced them 10 abandon practice at
that time.
Analysis Of tho federal reserve -y--
tenn report indicates that position OF
New York bank IL now strengthened
hat that member banks In south and
west arc In weaker position than
formerly.
TRtDE-Worid prices IN 1890 are
more than three times as high as
in 1913. according TO composite In.
dex which ! have complied on BASH
OF satisfies collected by federal re-.
serve board Exact index for 1920
In $40 "a compared with 100 in 1918
This covers United States. Canada.
Great Britain. France. Italy. swcs
den, Japan and Australia. weighted
according TO population. World
coinage. therefore. on average IL
worth only ~ cents on the dollar.
With American people In need Of
I
IL steadily revising tariff 10 sshut
out all foreign products. This is
being done piecemcal Movement
should be checked.
Reports 10 federal reserve board
indicate stacking OF retail trade
Stocks on hand are Increasing while
net sales are slowing up. February
il the latest date covered by the
figures. but tendency seems TO be
constant This Is apparently con
firmed by Bradstreot's current re-
port.
INDUSTRY - Tho Manufacturing
plants during March were attaining
rate of production which was rapid
~ ossrtakipg demand. This has
been intcrfered with by railroad
strike. Until freight congestion "
cleared up Industrial efficiency will
DO interfered with.
British and American wooden mills
are In the midst OF greatest boom
in history. Both are working at
top speed and are selling all they
can produce at top prices.
CROPS - Prediction OF wheat
shortage noted In this review for
several weeks Is now confirmed by
American and international sgricul
tufal experts. All hope Of lower
food prices Ia being abandoned by
government officials.
Reason for farm labor shortage 81
clearly Indicated In replies TO qucs.
tionnaires sent out by federal re-
serve board. They show farm
wages In middle west have been In.
creased on an average only 20 per
cent. In some localities wages have
been Increased only 20 per cent;
highest increase reported. 100 per
cent. During Same period price OF
farm products has increased 100
per cent In other words primary
reason farmer Is not holding farm
labor In because he falls TO pay
wages necessary TO keep pace with
increased cost OF living.
LABOR-cost to people Of outlaw