Norwich bulletin., 1920-05-31
BUSINESS CONDITIONS REVIEWED
 BY FEDERAL RESERVE BOARD

Washington, May 3O.-Despite recent reductions in prices, little relief from the general reign of high prices is seen | by the federal reserve board in it's an- alysis of May business conditions, made | public tonight. The board expressed the view that there has been no change in | the underlying conditions responsible for the high cost of living.
 Asserting that while stores sales and a 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 suggestion as a whole for it's face value. The ex- planation is added that there has been only a slight increase in production and there is no greater disposition on the part of the general public to economize and invest than had ruled heretofore.
 ''ltle changes that have taken place, therefore, the boards analysis says, cannot be looked upon as indicating a modification of underlying conditions. They may, however, afford basS for changes in business relationships that may broaden into more far reaching al teration of the essential price structure '
 Business in every section of the coun- try has suffered much from the freight
 
 ment of products to markets Effects of the tieup are noticed in the agricultural l districts as much as the industrial areas, and that farmers. are not the smallest 1 class which has sought more bank help l in the way of credit as a result | Results of the boards action in the di- rection of restricted loans already has 1 begun to be evident, according to reports of the various reserve banks. In addi- l tion to a general reduction in the value as we'll as volume of securities traded in l the financial centers there has been a general revision of interest rates affect | ing both commercial paper and call | money, it is stated.
 1 The labor situation during the month has been one of the outstanding ele- ments of doubt and difficulty" and is | one of-the larger problems with which 1 the country is expected to have to deal with the rest of the summer. In addi- l tion to intense shortage of labor on 1 farms and at other points of primary production, sporadic strikes have occJf- red in many lines of manufacturing, not !, ably the textile industry, indicating in the boards view continued unrest. Wages apparently have fallen behind l the advance in prices and the cost of living" the statement continues. 'The I movement of labor from farm to city is | lcontinuing Various demands for high CT wages have been taken under advise 7 ment for the purpose of bringing about | compromise adjus tments General com plaint of low efficiency or small output per unit of labor is prevalent, and the difficulty of getting skilled labor in somt of the more highly developed lines o1 manufacture is now very considerable The disturbing factors have mater ofr Yfo,f. .ftrT
 ing although general manufacturing continues in substantial volume. Cancel
 lations of orders in both cotton an(
 wool by the jobbing and retail trade have not yet reached large proportion!
 but they are ''already noticeable Thi! has resulted in some manufacturers be ing forced to make concessions to re
 tailers" who were described as being quite unsettled" The same situation was said to obtain in the leather trade With respect to conditions, local tt
 the reserve districts, the review said il
 part:
 Number 1 (Boston). There is notec a trend toward greater discrimination
 and economy in buying with pressur , for lower prices, but there is also notet very great difficulty in the way of act
 ual defation.
 Number (New York;. Price re auctions as noted in retail stores, ac cu1nulations awaiting shipment resultin , from strikes, a growth in the cost of do ing business, great reduction in securi ties prices, but nevertheless a continue high demand for goods, and activity i
 trade.
 Number Philadelphia). Int congestion of freight and accompanyin
 conditions have combined with a quiete
 state of things in the markets and
 large relative public demand for mediur T and lower priced goods to alter in som
 respects the general drift of develop = ment of preceding months"