Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-26
BANK OPTIMISTIC
REGARDING TRADE
Business Conditions in This
District to Improve, Says
Federal Reserve Report
TRANSPORTATION A FACTOR

An optimistic tone In evident in re-
port on business conditions in this dis
trict issued today by the Federal Re-
serve Bank.
Transportation. regarded as "kcy"
factor, is expected to improve because
Of the recent increased rate award, ac-
cording to the report. the improvement
reacting favorably on general conditions.
"It will now be possible to secure
new equipment and make such i'm
provements rs are necessary to facili-
tate the movement Of freight" the re-
port continued. IA rapid recovery is
not possible. but steady progress can
and should DO expected"
Many industries are experiencing n
cut In production. the Federal Reserve
Bank finds. This IL attributed TO pop
ular revulsion against high prices.
The free spending of war days is
being replaced by care In buying and n
willingness to dispense with some lines
until prices are normal. This attitude
Is reflected, according tn the report. In
falling prices for textile and leather
products.
Expect Many S0ieS
While production has fallen in many
industries because Of this popular ntti-
tude and because of transportation
troubles. the prospects this fall for the
retail trade are excellent, according to
the bnnk analysis.
THE outlook in the retail trade Is
exceptionally bright" the report stated.
'and there is feeling that the fall will
witness continuation Of the present
high volume of sales.
Householders who have been fearing
coal shortage this winter are given
some assurance in the report.
Moderate improvement in the pro-
duction and transportation Of coal has
taken place during the last month";" II
was declared. THE demand for an
thracite apparently grows stronger
daily. Producers, however, maintain
there will be plenty of anthracite for
domestic consumption next winter. al
though 1t Is not possible for every house
holder to secure his years supply this
summer"
One of the conditions that shows no
sign of Improvement. according to the
report, IL that Of housing.
There Is practically no building of
any kind going on at the present time
because Of the uncertainty of securing
building materials, unsettled labor con :
ditions. transportation difficulties and
the inability on the part of banks and
! building loan associations to take on
any more mortgage loans.
Trend Of Rents Upward
| 'The trend of rents Is distinctly up
ward. Rents to date are higher than
at any time heretofore. Two story
houses. which formerly rented for So
and $50, are now bringing between sec
and $50 per month.
Home buyers and building operators
are experiencing considerable difficulty
Ia the matter of financing the buying OF
building of homes. Mortgage money Is
very scarce, as banks and building and
loan associations are not increasing their
mortgage holdings, due to the tight
money market. and investors are In
clined to be less liberal than heretofore
and a great deal of money which for
merly was placed on first mortgage 1,
now being diverted to other invcstmen,
channels. where the returns are greater
| The great decrease in industrial ant
residential construction in virtually
every section of the country will in
evitably affect building materials. Lum
Der has already turned downward.
The housewife Is assured that tn,
trend Of wholesale meat prices has beer
downward during the last month. pack
ers estimating that the selling price o
beef in the East has decreased approx
| mately 10 To 81 Dpr cont