Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-06-03
REIGN Of HIGH
PRICES NOT ENDED
No Change in Underlying Con.
ditions Responsible, Says Fed.
eral Reserve Board in Detailed
Statement

general reign of high prices is seen by
the Federal Reserve Board in its anay-
sis of May business conditions made pub
lie tonight The board expressed the view
that there has been no change in the un-
DERIVING conditions responsible for the
high cost of living.
Asserting that while store sales" and a
tendancy to lower prices bears witness to
the presence Of disturbing factors" which
suggest the advent Of wide alteration in
price levels the board declares it cannot
accept the situation as whole for its face
value. The explanation is added that there
has been only a slight increase in produc-
tion and there Is no greater disposition
on the part of the general public to econ
omize and invest than had ruled hereto
fore.
The changes that have taken place.
therefore," the boards analysis says. Can
not be looked upon as interesting a mod-
dication of underlying conditions. They
may however afford basis for changes in
business relationships that may broaden
into more far reaching alteration of the
essential price structure"
FREIGHT JAM BLOCKS BUSINESS
Business in every section Of the coun-
try has suffered considerably from the
freight jam which has prevented normal
movement of products to markets. Effects
of the tie-up are noticed in the agri-
cultural districts as much as the in
dustrial areas and that farmers are not
the smallest class which has sought more
bank help in the way of credit as a
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 general reduction in the value as
we'll 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 outstanding elements
of doubt and difficulty" and is one Of
the larger problems with which the coun-
try is expected to have to deal with the
rest of the summer. In addition to intense
shortage of labor on farms. and at other
points of primary production. sporadic
strikes have occurred in many lines of
manufacturing. notably the textile in
dustry indicating in the boards view
continued unrest.
EXODUS FROM FARMS CONTINUES
Wages apparently have fallen behind
ing" the statement continues. The
movement Of labor from farm to city ls
continuing. Various demands for higher
wages have been taken under Amusement
for the purpose Of bringing about compro-
mise adjustments. General complaint or
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 manufacture
is now very considerable"
The disturbing factors have material
" affected many lines Of manufacturing.
although general manufacturing contin-
ues in substantial volume. Cancellations
Of orders in both cotton and wool. by the
obbing and retail trade have not yet
reached large proportions hut they are
already noticeable. This has resulted In
some manufacturers being forced to make
concessions to retailers, who were de-
scribed as being quite unsettled" The
same situation was said to obtain in the
leather trade.
CONDITIONS IN DISTRICTS
With respect to conditions, local to the
various reserve districts the review SAID !:
Number |, (Boston)-There is noted
a trend toward greater discrimination
and economy in buying, with pressure
very great dfficulty in the way of ac-
tual dehation.
Number 2 New York)-Price reduc-
tons are noted in retail stores. accumu-
lations awaiting shipment resulting from
strikes. growth in the cost of doing
business great reduction in securities
prices. but nevertheless continued high
demand for goods and activity in trade.
Number g. tPhiladelphia)-The conges-
ton of freight and accompanying condi-
tions have combined with quieter state
of things in the markets and large rel
alive public demand for medium and low
er prices goods to alter in some respects
the general drift OF development of pre-
ceding months.
Number 4, Cleveland)-An orderly
movement back toward a more solid and
substantial footing is noted. although
not all business men are agreed on the
outlook. Business conditions. however,
are said to be fundamentally sound,
Number 5. (Richmond)-Unr and
uncertainty in commercial fields have
continued and agitation against high
prices has led to some curtailment in
purchasing. Collections arc good, on
the whole, and the most serious cloud
on the present situation is the traffic
outlook.
Number s, (Atlanta)-The peak of
high prices has been reached in most
lines and the tendency is downward.
while there is some indication of re-
luction in stocks OF goods Unrest still
prevails on account of high prices.
Number Z. Chicago)-Decided re-
adjustment in economic conditions is
anticipated, one factor in which the
growth of indications of general reduc-
tions of prices. The transportation
associated difficulties noted elsewhere
in the country appear to be especially
acute in the Chicago district. while the
labor situation shows small improve
ment
Number s. est. Louis)- Tho volume
of business is enormous, the total in
both manufacturing and distribution
showing broad gains over the cores
ponding period last year. The peak Of
the upward movement. IS, however, he
lievel to be reached. Productive cor
ditions have been unfayorable agr1-
culturally.
Number Q. (Minneapols)-Crop con-
ditons are promising. The demand form
credit is very strong and the business
outlook is satisfactor, although there is
a disposition to be cautious
Number 10, (kansas City)--There was
during April the first real recession from
the high tide of activity Of the past year
or more. There has been q curtailed
movement of livestock and grain result
ing from bad transportation conditions
accompanied b severe financial hardships
Jpn producers and shippers. Retail trade
ha. ell