The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1920-06-03
HIGH PRICES REIGN
DESPITE MANY CUTS
Greater Disposition on Part Of Pub
lie to Economic Than
Heretofore.

uCFctOlOECs
Washington, May 30.-Despite rec
emit reductions in prices, little relief
from the general reign of high prices
IL seen by the Federal Reserve Board.
in its analysis of business conditions,
made public tonight. The board ex-
pressed the view that there has been
no change in the underlying condi-
tions responsible for the high cost OF
living.
Asserting that while "store sales
and tendency to lower prices bears
witness to the presence of disturbing
factors" which suggest the advent of
wide alteration in price levels. the
board declares it cannot accept the
situation as a whole for its face val
ue. 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
general public to economize and in
vest than had r uled heretofore.
"The changes that have taken place
therefore," the boards statement
said, cannot be looked upon as in
NASoSiAS o AuS0tnSollOA VI
conditions. They may, however, af-
ford basis for changes in business
relationships that may broaden into
more far-reahcing alteration of he
essential price structure
Business Suffers.
Business in every section Of the
country has suffered considerably
from the freight jam. which has pre-
vented normal movement of products
to markets. Effects of the tie-up are
noticed in the agricultural districts
as much as the industrial areas, and
that the farmers are not the smallest
class which has sought more bank
help In the way of credit as a result.
Results of the boards action in
the direction restricted loans already
has begun to be evident, according
to reports of the various reserve Sc
curities traded in the financial CEN
tiers there has been a general revision
of interest rates affecting both COM
mercial paper and call money, it is
said.
The labor situation during the
month has been one of the outstand-
ing elements of doubt and difficulty,
and is one of the larger problems
with which the country is expected
to have to deal with the rest of the
summer. In addition to intense short
age OF labor on farms and other
points of primary production. short
age has occurred in many lines of
manufacturing, notably the textile in
dustry, indicating continued unrest,
in the boards view.
Wages Fallen Behind.
Wages apparently have fallen be-
hind the advance in prices and the
cost of living" the statement contin-
ues. The movement of labor from
farm to city is continuing. Various
demands for higher wages have been
taken under advisement for the pur-
pose of bringing about compromise
adjustments. General complaint of
the low efficiency or small output per
unit of labor is prevalent. and the
difficulty of getting skilled labor in
some of the more highly developed
lines Of manufacture is now very con-
siderable"
The distributing factors" have
materially affected many lines of
manufacturing, although general
manufacturing continues in substan-
tial volume. Cancellations of orders
in both cotton and wool by the job
bing and retail trade have not yet
reached large proportions but they
are already noticeable" This has
resulted in some manufacturers being
forced to make concessions to re-
tailers," who were described as be-
ing quite unsettled" The same sit
uation was said to obtain in the
leather trade.
With respect to conditions, local to
the various reserve districts, the
boards review said in part:
Price Reductions Noted.
Number two New York; price re-
ductions are noted in retail stores a
considerable accumulation of goods
awaiting shipment as a result Of
strikes, a growth in the cost Of doing.
business, great reductions in securi-
ties prices, but nevertheless a contin-
ued high demand for good and ac-
tivity in trade.
Number FIVE (Richmond). Unrest
and uncertainty in commercial fields
have continued, and agitation against
high prices has led to some curtail-
ment in purchasing. Collections are
good, on the whole, and the most Sc
rious cloud on the present situation
is the traffic outlook.
Number six (Atlanta). The peak
OF high prices has been reached in
most lines, and the tendency is down
ward, while there is some indication
OF reduction in stocks of goods. Un-
rest still prevails on account of high
prices"