Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1920-06-01

Lower Prices ForeshadoWed by
Federal Reserve Bank.
THRIFT, SHORT CREDIT CITED
Seventh District Report Made Public
at Chicago Finds Rail Tieup is
Grave Menace, but Congestion
Is Easing.

/ Chicago, May ga general reVl-
gion downward of prices of all COM
modities except food, 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.
A decided readjustment of the eco
5omic and social influences governing
our national life is being anticipated
nv the business world, the report says,
with the situation complicated by the
lack of any precedent by which 0usl-
ness men might be guided.
probably the most disturbing ele-
rnent in the entire situation, the
statement adds, sis the almost demon
allied condition of our railroads,
transportation being on the verge OF
q breakdown by reason of shortage
Of freight cars and a serious conges-
ton in all leading railroad centers,
caused by the strike of switchmen ana
other rail workers.
Forecast n. C. L. Slump.
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
uortant, there IS the additional com
plication of growing signs of a general
revision of prices of all commodities
with the trend in most cases down
ward
The continued high prices of fooC
as the most important exception, the
review states, adding:
"Other living costs, however. offel
great encouragement, particularly th'
price of clothing and shoes. Explana
hion of this situation is not hard Il
find. Prices of clothing and dry goods
generally had reached such heights al
10 be almost prOhibitive and the pub
aic quite naturally curtailed purchase
very materially.
Note Greater Thrift.
"A most encouraging development o
the last month has been a growing
tendency on the part of the genera
public toward thrift. Ever since tn
armistice was signed people have bee
hndulging In q wild spending orgy. buy
ing only the highest-priced goods an
satisfying eXtravaganceS almost to a
extreme This spending hysteria nov
seems to be waning, although tn
change is not yet pronounced"
Harding Urges Decreased Loans.
Washington, May 26.-EconOmy
Individual expenditures, reduction {
non-essential loans by banks, increase
production and improved transports
ton are needed TO reduce the cost {
living and debate credits, GovernC
Harding of the federal reserve boar
declared in responding to a senate re
olution of inquiry.
The board is not prepared TO defir
what are essential and nOnessenti
loans, Governor Harding stated. Thi
he said, is problem for local ban
ers, familiar with local needs.
Governor Harding's letter, presents
to the senate by Vice President Ma
shall came in response to the res
luton of Senator Mccormick (ReI
of Illinois, adopted recently, reque
ing information regarding what ste
the board contemplated ito meet t
existing imitation OF currency and ere
Its and consequent high prices" a
what measures were proposed to n
biize c, edits for movement of the Is
crop.
Governor Harding told of the rect
conference here of the federal resel
advisory council and its recOmmen
lions for curtailment of credits,
gether with the opinion that cong
ton of transportation facilities is
ing up great quantities of foodstu