The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1920-05-28
Deere SE IN H. C.L.
IS BELIEVED NEAR
Lower Prices ForeShadoWed by
Federal Reserve Bank.
THRIFT, SHORT CREDIT CITED
Seventh District Report Made Public
at Chicago Finds Rail Tieup Is
Grave Menace but Conges-
ton Is Easing.

Chicago, May pa general revi-
sion downward of prices of all COM
modities except food, a 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 on Tuesday.
A decided REIMBURSEMENT 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 busi-
ness men might be guided.
probably the most disturbing ele-
ment in the entire situation" the
statement adds, lis the almost demon
allied condition of our railroads,
transportation being on the verge of
a breakdown by reason of shortage
of freight cars and a serious cOnges-
ton in all leading railroad centers,
caused by the strike of switcthmen and
other rail workers.
Forecast II. c. l.. Slump.
''The 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 I'M
pOrtant, there is the additional COM
plicatfon of 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 prOhibitive 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
u.
armistice was signed people have been
indulging in a wild spending orgy, buy
ing only the highest-priced goods and
satisfying extravagances almost to an
extreme. This spending hySteria now
seems to be waning, although the
change is not vet pronounced"
Harding Urges Decreased Loans.
Washington, May 26.-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 on Tuesday in responding to
a senate resolution of inquiry.
The board is not prepared to define
what are essential and nOnessential
loans, Governor Harding stated. This,
he said, is problem for local bank
ers, familiar with local needs.
Governor Harding's letter, presented
to the senate by Vice President Mar
shall come in response to the resO-
luton Of Senator Mccormick (Rep)
of Illinois, adopted recently, request
ing information regarding what steps
the board contemplated 'to meet the
existing imitation of currency and cred
its and consequent high prices" and
what measures were proposed to mo-
Billie credits for movement of the 1920
crop.
Governor Harding told of the recent
conference here of the federal reserve
advisory council and it's recommends
tons for curtailment of credits, to-
gether with the opinion that conges-
ton of transportation facilities is ty-
ing up great quantities of foOdstuffs.