The Pascagoula chronicle., 1920-04-02
ERA OF RECKLESS
Spending HALTED
n. c. of L. Is About to Show Recess
sion, Says Federal Reserve
Board.

Washington, March 31.-Nationwide
reports from Federal Reserve Banks
officials, made public tonight disclose
their opinion that the postwar era of
extravaganza and reckless buying"
| by the public is nearing its end.
A "hesitation, if not an actual re-
cession" of prices is noted and the
Federal Reserve Boards statement
summarizes its advices as indicating
generally more hopeful view Of the
country's business conditions than for
several months
While the price changes were shown
by the board not to be universal, they
were nevertheless regarded as posi-
tive and of Importance as basis for
neckoning what the immediate future
holds
Relief from the high prices for the
consumer will not be completely OBJ
tanned until present stocks are absorb
ed in practically all lines, according
to the boards view. Manufacturers
everywhere, however, were shown to
hold the view that the peak Of high
prices has been reached and to expect
a gradual recession.
In the clothing trade, particularly,
the board said there was a marked
tendency of the public to make old
supplies last longer and to refuse to
pay exorbitant prices. This phase
can mean only that an awakening has
come, thestatement said, and that many
people have arrived at the conclusion
that they are themselves responsible
for continuing high range of prices.
Wholesalers in the drygoods trade
to some extent nave taken "commen-
datory attitude" and are discouraging
their customers from placing heavy
fall orders. This has served to slacken
demand and create a feeling that low
er prices will follow.
The reports do not give encourage
ment concerning price reduction in
shoes. There was, however, a wide
divergence of opinion as to what shoe
and leather prices will do.
Eastern seaboard cities reported a
"piling up of commodities" on this
side Of the Atlantic. The exchange
situation was beginning to reflect it.
self on the export market as well as
through general reduction by Euro
peans in their foreign buying, it was
noted.
Officials said that the full meaning
of the changed attitude of the public
probably would show definite results
50 slowly as to be almost impercepti-
BILE. They explained that it was "a
step in the right direction" and that
its value was increased because there
had been no appreciable letting down
in the volume OF legitimate business.
The housing situation continued
acute throughout the country, partly
as result if labor conditions, but
more largely because thousands Of
families are deserting the farms for
what they believe are greater oppor-
tunities" in the cities. There was,
however, another reason advanced:
Capital is slow to engage in new
building ventures because of the "un-
favorable conditions of taxation" This
of course, applies to general construc-
tfon work as well as to housing in the
limited sense, the statement said.
-"Production conditions the country
over" the statement continued, give
every reason for encouragement with
refer ence to actual industrial and ag-
ricultural potentialities. The crop out.
look, so far as can be judged At this
season, is hopeful There is a sub.
stantial degree of harmony between
capital and labor, as indicated by small
unemployment.
"The difficulties in sight are due to
conditions of relative undersproduc.
tion or decrease of production result
ing from lesened activity of both cap
ital and labor. problems arising out oi
heavy taxation and measures resulting
from the one-sided working of the ia,
laws.
Financially speaking, caution and
conservatism are called for and the ef
forts TO restrict the volume of credi
have been only partially successful
As result, high interest rates ant
relative scarcity OF funds will con
tinue to prevail during the period IL
which the country is endeavoring I,
extend its productice capacity and I,
overcome the relative loss of prog
ress resulting from war limitation
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