The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1920-05-31
Federal Reserve Board Reports
General Business Conditions

4
Following is a statement on busi-
ness conditions existing in the va
rious Federal Reserve centers;
Changes in prices. as well as In
both business and credit conditions.
occurring during the month OF
May. have borne witness to the
presence Of disturbing factors.
whose Importance and persistence
are, however. as yet uncertain Lo-
cal reductions in retail prices have
occurred ~ a considerable number
OF points and have at least sug-
gested the advent OF a serious mod
thcation OF the price level through
out the country. More careful anaI-
ysis has shown that there has been
no material alteration in the up-
DERIVING conditions affecting the
situation. there being no decided
increase in the volume Of produc-
tion sufficient TO create a more nor
NAL relationship with consumption.
no substantial change in the vol
ume OF credit extended, and no
greater disposition Ito eoonomize
and invest than heretofore. The
changes that have taken place
cannot. therefore. be- looked upon
as indicating a modification OF I'M
derlying conditions. They may,
however, afford a basis for changes
in business relationships that may
broaden into more fsr-reaching al
teration OF the essential price
structure. The continuance OF Ia
Dor difficulties and unrest, particu-
! larry in connection with the raii-
; roads. when added to the difiicuIt
! situation produced by car shortage
u6V.. Na1a ON
considerable interruption to bust
ness operations. and the whole out
| look has been such as to bring
.about a severe curtailment in the
volume of stock and securities
I transactions and 10 compel very
material lesseninE In the market
value of Liberty bonds and Of other
| securities of the first grade.
In district No. l (Boston) there
! is noted d trend toward greater
discrimination and economy in buy
| ing, with pressure for lower prices
! but there is also noted very great
difficulty in the way of actual de-
I fiation.
| In district No. New York;
. price reductions are noted in retail
/ stores. a considerable accumulation
! Of goods awaiting shipment result
! ing from strikes. a growth in the
cost Of doing business. great reduc-
.tion in securities prices. but never
theless a continued high demand
/ for goods. and activity in trade.
I In district No. CPhiladelphia)
! the congestion of freight and &C
commanding conditions have COM
bined with a quieter state Of things
in the markets and a larger rela-
tive public demand for medium and
! Iower-priced goods, to alter in
some respects the general drift OF
development of preceding months.
In district No. CCleveland) an
orderly movement back toward
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.
In district No. ) (Richmond) un-
rest and uncertainty in commercial
fields have continued. and agita-
ton against high prices has led TO
some curtailment in purchasing
Collections are good. on the whole,
and the most serious cloud on the
present situation is the traffic or
look.
In district No. 6 (Atlanta) the
peak of high prices has been
reached in most lines and the ten
dency is downward. while there is
some indication of reduction in
stocks Of goods. Unrest still pre-.
walls on account OF high prices.
In district No. (ChicagoD de.
cided readjustment in economic
conditions is anticipated. one fac
tor in which is the growth Of In
dications OF general reductions OF
prices. The transportation and as
ISOLATED difficulties noted elsewhere
in the country appear to be espe'
cially acute in the Chicago district
while the labor situation show,
small improvement.
In district No. S CSt. Louis) tn,
volume OF business is enormous, tn,
total in both manufacturing ant
distribution showing broad gain,
over the corresponding period las
year. The peak OF the upwarC