The Birmingham age-herald., 1920-04-01
Post War Era Of Reckless Spending
 Near End, Nation Wide Reports Shou
Prices Have Reached "Hesi- tatiOn" Point and More Hopeful View of Nations Business Condition Is Taken By Federal Re- serve Board
By As.OeIatsd Pres.

By Associated Preas
 Washington, March 31.-Nation-
 wide reports from federal reserve
 bank officials. made public tonight
 disclose their opinion that the post
 war era of "extraSagnncc and
 reckless buying" by the public is
 nearing its end.
 "A hesitation. if not an actual reees- sion" of prices is noted and the federal reserve boards statement summarizes it's advices as indietasng generally more hopeful view of the country s business condition than for several months.
 While the price changes were shown by the board not to be universal, they were nevertheless regarded as positive and of importance as basis for recK- oning what the immediate future holds.
 Relief from the high prices for the consumer will not be completely oo- tained until present stocks are ap- sorbed in practically all lines, accorc- ing to the boards view. Manufac- turers 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, particular
 Iy, the bonrd said there was
 marked tendency of the public to
 make old supplies last longer and
 to refuse to pay cxOrbitant prices.
 rhis phase can mean only that an
 awakening has come, the statement
 said, and that many people have arrived at the conclusion that they are themselves responsible for
 continuing high range of prices.
 DISCOURAGE HEAVY BUYING Wholesalers in the dry goods trade to some extent have taken com mandatory attitude and are discourag ing their customers from placing heavy fall orders. This has served to slacker demand and create feeling that lower prices will follow.
 The reports do not give encourage. ment concerning price reduction 1T | shoes. There was, however, wide divergence Of opinion as to what shoe and leather prices will do.
 Eastern seaboard cities reported : i .piling up of commodities on this sid, of the Atlantic. The exchange situa l ton was beginning to reflect itself oI the export market as well as througI d general reduction by Europeans il their foreign buying, 1t was noted.
 Business and financial development | during March also were marked b. | tRuINSlOH dHV itth tin uilllpFlulty t 1 opinion, reports from the seyeral q ! ersl reserve districts showed S1' throughout the detailed observation of these officials there was a distinctl optimistic tone Summed up it was:
 THE SPRING OUTLOOK
 ''The outlook for the spring sea-
 son, both industriaIiy and agricul-
 turalIy, is excellent. Bnt modifying l factors in the situation are an i'm
 adequacy of labor supply and a ] shortage of various kinds Of build | ing materials as well as borrowing I facilities of banks.
 ] Officials said that the full meaninj of the changed attitude of the publi 1 probably would show definite result so slowly as to be almost impercept ible. They explained that it was ". step in the right direction and tha l its value was increased because ther had been no appreciable letting dow l in the volume of legitimate business.
 The housing situation continued acute throughout the country partl. as result of labor conditions, bu families are deserting the farms fo what they believe are greater oppor l tunities' in the cities. There was however, another reason advanced /, Capital is slow to engage in new build ing ventures because of the "unfavor able conditions of taxation"
 l This, of course, applies to genera lconstruction work as well as to hous ing in the limited sense. the statemen said