Omaha daily bee., 1920-11-02

THE BUSINESS OUTLOOK.

A certain amount of definite announcement
may be derived from the October report of the
Federal Reserve bank While agreement is not
complete on details it is sufficiently compact on
the main point Processes of read JUS tment arc
under way, and,s while they have not as yet
progressed far enough to effect stabilization
sought they denote such approach to normalcy
as justfes the belief that the trend is in the
right direction. The goal of standardization to
which some direct their thought may never be
reached, nor is it especially desirable. The
natural fluctuations that result from any of the
several causes or factors that for ages have
controlled trade will still be effective, and may
be relied on to exert the same influence in the
future they have in the past.
Recessons in prices are generally noted, and
disposition on part of manufacturers and
wholesalers alike to proceed with caution, con-
solidating as they 60, but withal healthy tone
OF confidence exists. The liquidation of ac-
cun,ulated stocks is under way, but has not
gone far enough to create the easier money
market that is essential for general forward
movement Until this point has been reached
the Stacking off in prices will be steady but
gradual, that no undue disturbance will follow
that danger of panic has been averted and while
they yet advise caution, they feel that disaster
viii ensue only because of badly directed judg-
ment. A fair indication of how this feeling has
taken hold is shown in the action tof a great
clothing manufacturing concern in Chicago,
which has advised its customers and the trade
in general to hold off on spring buying until
more definite condition has been reached. It
has ceased production for the time but is hold
ing its staff intact that operations may start i'm
mediately when the right time comes.
Railroads report traffic conditions clearing.
Daily deficit in cars has dropped from the peak
of 100000 in September to 10000 ip October,
and both mileage and loading show increases,
il has been in many months. Motive power still
is big factor the shortage in available loco
motives being severe. Orders have been placed
for more than 1900. or nearly double the pur-
chases of the last two years.
Conditions in the labor market also are ia
vorable. While there is some less employment
than year ago. wages remain at a high level.
and men generally are at work Some sporadic
reductions reported but no sign is visible
of extensive falling off. Bankers point to steadily
increasing prices for bonds as an evidence of
the returning desire for safe rather than specu-
lative investment.
Interruption incident to the political CAM
paign, which is inevitable. is now passed, and
whatever the outcome business may 60 ahead
with knowledge of what is to be expected forthe
next four years. Calculations for the future
may be made with some certainty and conse-
quent safety as far may be attained in the dis
counting of days to come. Viewed from any
point, the general outlook justihes the confidence
OF the Federal Reserve board. Winter months
should see many of the difficulties removed and
the track cleared for full steam ahead in the
spring.