Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1920-05-28
DECREASE IN H. C.[.
IS BELIEVED NEAR
Lower Prices FoFeshadoWed 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 revi-
sion downward of prices of all com
modlties 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
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 bust
ness men might be guided.
Probably the most disturbing ele-
ment In the entire situation" the
statement adds, us the almost demon
allied condition of our railroads,
transportation being on the verge of
a breakdown by reason of shortage
of freight cars and serious conges-
ton in all leading railroad centers,
caused by the strike of switchmen and
other rail workers.
Forecast n. c. L. Slump.
'rhe 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
plicatlon &c growing signs of a general
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-
ton of this situation is not hard to
find. Prices Of clothing and dry goods
generally had reached such heights as
TO be almost prohibitlve and the pub
lie quite naturally curtailed purchases
very materially,
Note Greater Thrift.
"A most encouraging development OF
the last month has been growing
tendency on the part of the general
public toward thrift. Ever since the
Tmistce was signed people have been
indulging in wild spending orgy, buy
ing only the highest-priced goods and
satisfying extravagances almost to an
extreme. This spending hysteria now
seems 10 be waning, although the
change is not vet pronounced"
Harding Urges Decreased Loans.
Washington, May % Economy In
individual expenditures, reduction of
non~eSsential loans by banks, increased
production and improved transporta-
ton are needed to reduce the cost of
living and debate credits. Governor
Harding Of the federal reserve board
declared in responding TO a senate res
olution Of inquiry.
The board Is not prepared TO define
what are essential and nonessential
loans, Governor Harding stated. This,
ne said, Is problem for local bank-
ers, familiar with local needs.
Governor Hardlng's letter presented
TO the senate by Vice President Mar
shall came in response TO the reso-
mtion of Senator Mccormick tRep)
OF Illinois, adopted recently, request
ing information regarding what steps
the board contemplated ito meet the
existing imitation of currency and cred
It's and consequent high prices" and
what measures We're proposed TO mo-
bihze credits for movement of the 1920
crop.
Governor Harding told of the recent
conference here of the federal reserve
advisory council and its recommended
lions for curtailment of credits. TO-
gether with the opinion that conges-
ton OF transportation facilities is ty-
ing up great quantities of foodstuffs.