The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1920-02-04
REPORT PREDICTS
CHECK IN PRICES
Harvard Investigators See Hope for
Future. Drop Not impossible,

Harvard Investigators See Hope for
Future. Drop Not Impossible.
Cambridge, Mass, Feb 1.-The Har-
ward committee on economic research,
appointed by Harvard university to
make speciai studies OF economic con-
ditions, has Just announced that the
United States may expect a check in
the upward movement Of prices and
J of business activity, which has been
in progress since last April and per-
haps drop in prices. At the present
time. however, the committee states,
and on the basis Of the November and
December figures, it would be pre-
mature to conclude that violent re-
cession in commodity prices is prob
able.
The committee was appointed by
Harvard university in 1917 to assist in
the solution of the fundamental econ
omic problems which underlie modern
commerce and finance. 1t provides
statistical information to federal re-
serve banks, for banking houses and
large corporations and includes among
its publications review Of economic
statistics which contains n price fore
caster.
The committee bases it's present
forecast upon statistical material rep
reseniing the decline in the New York
bank clearings, the volume Of sales on
the New York stock exchange, the
prices Of industrial stocks and analy-
sis Of the banking and trade situation.
domestic and foreign.
Prof. Warren NJ. Persons, editor of
Statistical Service published by the
committee, says that the statistics col
lected by the committee indicates that
the farmers will continue to prosper
in 1920 and that the prosperity Of this
industry will contribute to that Of all
others during the coming year.
The beginning Of the new year, he
declares, finds American manufacture
ing industries in sound and prosper
Gus condition.
'The tightness Of the money market
and the. announced policy, already in
auguratcd, Of the federal reserve board
Of increasing discount rates have
caused many observers to have grave
misgivings for the financial outlook
for 1920. he says. Instead Of caus-
ing alarm. the action Of the federal
reserve board should, in fact. be re-
garded as favorable omen High in
tcrcst rates are the main reliance for
protecting bank reserves and they
spell not disaster but safety, provided
they are applied in time. Control Of
interest rates is the safe and effective
way Of dealing with such a situation
as we now face and 1t is to be hoped
that nothing-not even the needs Of
the United States treasury-will divert
the reserve board from pursuing the
The outlook for 1920 is for con
tinuancc Of large demand for credit
that will not be supplied except at in
creasing rates. High rates for bank
the upward movement of commodity
prices as they have already checked
the upward trend Of security prices
and the volume Of speculation OH the
New York stock exchange"
or the belief of some business men
that the whole economic situation now
is abnormal the committee says: Alb
normal it certainly is in many re-
spects. Prices are very high; there
has been great expansion Of bank
credit; cXtravagant expenditure, both
public and private. Is found on every
hand, and our abnormally large cx-
port trade is likely to suffer curtal-
mcnt. a year ago many observ-
ers expected violent drop in prices
and crisis in 1919. Today there
seems to be less reason for expecting
such Developments in 1920"
The Harvard committee on cconom-
ic research Is planning to publish this
year monographs cmbodying special
studies Of the principal economic con-
ditions and forces that will affect
prices and trade throughout the world
during the next five years. The com
mittce also will study and classify
the annual statistics Of Industrial COM
mcrce and finance and will construct
trade. indices based upon them. The
committee is composed OF university
professors and men OF affairs with