Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1920-06-04
SEES DROP IN
H. C. OF |. SOON
Reserve Bank Cites Increased
Thrift and Debating Cred
its as Factors.
FIND RAIL TIEUP EASING
Decided Readjustment of Economic
and Social Influences Governing
Our National Life Anticipated
by Business World.

Chicago, May PA general revi-
sion downward of prices of all COM
modities except food, a growing ten
dency toward thrift, and improvement
in the labor situation, are three en-
cOuraging factors in the report of the
Seventh Federal Reserve district, is
sued here on Tuesday.
A decided readjustment of the eco
nomic and social influences governing
our national life is being anticipated
by the business world, the report says,
with the situation complicated by the
lack of any precedent by which busi-
ness men might be guided.
Probably the most disturbing ele-
ment in the entire situation" the
statement adds, "is the almost demon
allied condition of our railroads.
transportation being on the verge of
a breakdown by reason Of shortage
of freight cars and serious cSnges-
ton In all leading railroad centers.
caused by the strike of switcthmen and
other rail workers.
"The credit supply still is restrict
ed and the demand outstrips any pre-
vious total in the history of the world.
Lastly, but by no means the least I'M
portant, there is the additional COM
plfcation of growing signs of general
revision of prices of all commodities.
with the trend in most cases down
ward"
The continued high prices of food
is the most important exception, the
review states, adding:
"Other living costs, however, Offer
great encouragement, particularly the
price of clothing and shoes. Explana-
tion of this situation is not hard 10
find. Prices Of clothing and dry goods
generally had reached such heights a.
to be almost prohibitive and the pub,
lie quite naturally curtailed purchases
very materially.
"a most encouraging development OF
the last month has been growing
tendency on the part of the general
public toward thrift Ever since the
armistice was signed people have been
indulging in wild spending orgy. buy
ing only the highest-priced goods and
satisfying extravagances almost to an
extreme. This spending hysteria now
seems to be waning. although the
change is not yet pronounced"
Washington, May 27.-Economy in
individual expenditures, reduction OF
non-essential Aoans by banks, increased
production and improved Transports
ton are needed to reduce the cost Of
living and debate credits. Governor
Harding of the federal reserve board
declared on Tuesday in responding to
a senate resolution of inquiry.
The board is not prepared to define
what are essential and nonessentiai
loaIs, Governor Harding stated. This,
he said, is a problem for local bank
ers, familiar with local needs.
Governor Harding's letter, presented
to the senate by Vice President Mar
shall come in response to 1.-THE reso-
luton of Senator Mccormick RepO
of Illinois, adopted recently. request
ing information regarding what steps
the board contemplated "to meet thu
existing imitation of currency and cred.
its and consequent high prices" and
what measures were proposed to mo-
billie credits for movement of the 1920
crop.
Governor Harding told Of the recent
conference here of the federal reserve
advisory council and its recommenda-
lions for curtailment of credits.