Fulton County tribune. (Wauseon, Ohio) 1883-1925, 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 ResdJustment 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 demor-
allied condition of our railroads.
transportation being on the verge of
a breakdown by reason of a shortage
Of freight cars and a serious conges-
tion 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 Inn
portant, there is the additional com
plication of growing signs Of gen eral
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 to
find. Prices of clothing and dry goods
generally had reached such heights as
to be almost prohibitive and the pub
lie quite naturally curtailed purchases
very materially.
"a most encouraging development of
the last month has been a growing
tendency on the part of the general
public toward thrift. Ever since the
armistice was signed people have been
indulging In a 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 loans by banks, increased
production and improved transporta-
tion are needed to reduce the cost of
living and deflate credits, Governor
Harding of the federal reserve board
declared on Tuesday in responding to
n senate resolution of inquiry.
The board is not prepared to define
what are essential and nonessential
loaLs, 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
shah come In response to the reso.
luton Of Senator Mccormick (Rep.)
of Illinois, adopted recently, request.
ing information regarding what steps
the board contemplated ito meet the
existing imitation of currency and cred
its and consequent high prices" and
what measures were proposed to mo
bilize credits for movement Of the 1921
crop.
Governor Harding told Of the recert
conference here of the federal reserve
advisory cOuncil and its recommenda
tions for curtailment of credits.