Every evening, Wilmington daily commercial., 1920-05-21
DROP IN PRICES MAY
BRING DEPRESSION
FOR BRIEF PERIOD
u. S. Officials Expect Government
to be on Surer Financial Basis
After Liquidation.
SEE NO SIGN OF PANIC
From Today's Baltimore Sun

Washington, May 20.-Higher govern
ment officials are convinced that the peak
of high prices in this country for the
necessities of life not only has been
reached but that it has been passed and
that the shaking-down process, which
was inevitable soon or late, has set In
decisively.
DEPRESSION PERIOD BRIEF.
There will be period of general de
preston, it is anticipated here, as liqulda-
tion of stock goes on and as cancellation
Of orders takes place, but this Period Will
not be extended, it is believed, Before
many weeks have passed it will be possible
for business as whole to find bottom and
after that market stabilization will come,
but upon a surer economic basis than
at any time since 1916.
These convictions have been arrived
at by officials of the government following
series of all-important conferences,
participated in during the week by leading
factors in the grain industry, by powerful
banking interests from each of the Federal
Reserve districts, by representatives OF the
coal operators, by the executives OF the
railroads and by other purely business
interests.
NO TALK OF PANIC.
II is an exceedingly interesting fact
future. despite liquidation that is OBJ
scrvable in practically all lines of business,
despite the freight congestion, despite the
strain upon credit which has become
acute. there is no panic talk in Washing
ton, Nobody in authority seems to feel
the slightest anxiety over the situation.
4 lot Of people will make less profits than
before of course. Some people will lose
a great deal of money. Loans will be
harder to make, it is admitted, and buying
viii be curtailed wherever it is possible
for the average man or family to curtail
Il. but these things do not bespeak panic.
There is no grave alarm over the business
outlook There is no thought of great
crash. At least none of these things are
reflected in Washington.
Although the high price level IS now
on the decline, best informed government
officials do not feel too hopeful Of pro-
nounced results all along the line In the
immediate future They say that cloth
ing prices will slump even more than they
have; that the prices of other essentials
are calculated to go down by slow de-
grees, but they doubt if food prices Will
lie lower materially for some weeks.
People can wear old clothes; they can
avoid building new houses, perhaps and
buying new automobiles, but they cannot
stop eating and most families cannot
further curtan their grocers bills. They
are at rock bottom now. Because OF
this the demand for foodstuffs will con-
tinue about as it is and until there is a
more widespread production OF food
products prices viii remain high.
As officials here regard the matter
there is only one sure way OF forcing down
food prices and that is resort to drastic
embargo against further wholesale ex-
portations OF provisions. America Is
still selling vast quantities OF foodstutfs
abroad. Foreign buyers are in the
American market by the thousands and
are paying whatever price they must
for such staples as sugar, -four, wheat
corn and packing house products.
So long as the foreign buying con-
tinues. it Is pointed out, there viii be high
price levels In the domestic markets,
certainly so long as there Is reduced pro-
portion In America. Nobody has yet
risen up to propose any restrictions upon
expectation of food. The Humanitarian
phase of this question deters many and
the general effect on business OF an en-
barge against wheat or -four or meat IS
a thing from which statesmen seem N
stinctively to shrink.
Ii is declared by the highest authorities
here that there Is no actual shortage OF
food In this country and no prospective
shortage, If only the demands Of the
American consumer are taken INTO con-
sideration. But if the food products
raised in the United States are to be
divided with the rest OF the world, IS
has been true for years, then q shortage
may be expected and prepared Tor.
SPECULATION TO BE HIT.
The feeling has grown IN Washington
during the last few days that the action
OF the Federal Reserve Board IN dealing
with credit will go hard with the specu-
lator whether IN stocks and bonds or
In food and clothing. 1t is beginning 10
appear to government officials that more
wholesome atmosphere surrounds the
business Of the country In other words,
better times are ahead, even though
there be some dangerous shoals TO pa IS
In the meanwhile.
The action of the Interstate Commerce
Commission In taking over virtual con-
troll of the railroads under its emergen cy
powers will do much TO improve general
business conditions, 1t is believed. he
order issued tonight will have stimuli at
ing effect upon stagnant markets, D VI
IL will not increase the manpower on II
railroads. A better distribution Of cars
will result, but it is doubtful if more trains
will be operated until the railroad labor
DOaIu UiSpOoSn VI L1Ac wage JIoDiEAA10
now before il.
Members of that board have protested
privately that they dare not act precipi-
lately upon the wage questions. They
must have time to get at the facts and
must o. given fair opportunity TO do
Justice to both the public and the railroa d
employees. All that is freely granted in
Washington, but there is natural impa-
tience on the part of the government for
early action, just as there is growing
impatience on the part of the railway
employees.
The one thing that would plunge the
country into state of economic disorder
would be a spread of the railroad strike
Already there are thousands of railroad
men away from their Jobs, notwithstand-
ing the supposed settlement or collapse
Of the outlaw strike And the officials
Of the government dread to contemplate
what might be the result if more men went