The Birmingham age-herald., 1920-05-31
PRICE BOARD DOES NOT BELIEVE OWN
 EYESAS EVIDENCE 
Tendency to Lower Prices Indicates Disturbing Fac tors, But Little Relief
 From High Prices
hx AssssIatsd Prs,,


 Washington, May 30.-De- spite recent reductions in prices, little relief from the general reign of high prices is seen by the federal reserve board.
 In it's analysis of May business con- ditions. made public tonight, the board expressed the view that there has been no change iii the underlying condi- tions responsible for the high cost of living.
 Asserting that while "store sales and a tendency to lower prices bears witness to the presence of disturbing factors." which suggest the advent Of wide attenuation in price levels, the board declares it cannot accept the publication as whole for it's face value. The explanation is added that there has been only slight increase in production and that there is no greater disposition on the part of the J general public to economize and in- vest than had ruled heretofore.
 .sThe changes that have taken
 place. therefOre," the boards anaI-
 ysis says, @cannot be looked upon
 as indicating n modification of
 underlying conditions. They may,
 however, afford . basis for
 changes in business relationships
 thnt may broaden into more far
 reaching alteration Of-the essential
 price structure"
 country has suffered considerably from the freight jam which has prevented normal movement of products to mar kets. Effects of the tie-up are noticed in the agricultural districts as much as the industrial areas, and that farm CTS are not the smallest class. which has sought more bank help in the way of credit as result.
 Results of the boards action in the direction of restricted loans already has begun to be evident, according to raports of the various reserve banks. Tn addition to a general reduction in the value as we'll as volume of securt- ties traded in the financial centers, there has been a general revision os interest rates affecting both commef- cial paper and call money, it is stated.
 LABOR SITUATION
 The labor Situation during the month has been one of the outstanding ele rnents of doubt and difficulty" anI is one of the larger problems with which the country is expected to have to deal the rest of the summer. In ad- dition to intense shortage of labor on farms and at other points of primary production, sporadic strikes have oc- curred lin many lines of manufactu'- ing. notably the textile industry. in- dicating in the boards view continued unrest.
 wages apparently have fallen be- hind the advance in prices and the cost of living" the statement continues Tne movement of labor from farm to city is continuing. Various demands for high z CT wages have been taken under advise ment for the purpose of bringing about compromise adjustments. Ge1- eral complaint of low efficiency pr small output per unit of labor $ prevalent. and the difficulty of get ting skilled labor in some of the more highly developed lines of manufacture Is now very considerable"
 The disturbing factors have ma terially affected many lines of manu- facturing although general manufac- turing continues in substantial volume Cancellations of orders in both cotton trade. have not yet reached large pro- portions but they are already notice able" This has resulted in some manu- facturers being forced to make con sessions to retaifers.'' who were de- seribcd as being quite unsettled" The samo situation was said to obtain in the leather trade.
 With respect to conditions. local co tho various reserve districts. the boards review said in part:
 REDUCED PRICES
 Na. 2. (New York) Price reduc- fipns are noted in retail stores. con- \ eiderable accumulation of goods await ing shipmen4- resulting from strikes . Erowth in the cost of doing bueiness. great reduction In securities prices. but nevertheless q continued high demand for goodA and activity in trade
 No 5. (Richmondl Unrest and un- certaintr In commercial fields have continued. and agitation against high prices has led to some curta11ment in pupchAsing. Collections are good, on tho whole and the most serious cloud
 (Ceatinuea = PaGs TWel