The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1920-05-31
LOWER PRICES
MAY NOT STAY
Federal Reserve Board
Thinks Present Relapses
Only Temporary.
CONTINUED FROM PAGE ONE.


tofore. The changes that have TAX
en- place cannot. therefore. be looked
upon as indicating a modification of
underlying conditions" y
They may, however. afford n
basis for changes in business rela-
, tionships that may broaden into
more far-reaching alteration of the
essential price structure. The cons
tinuance of labor difficulties, and
unrest, particularly in connection
with the railroads. when added to
the difficult situation produced by
car shortage and lack of equip
ment, has caused considerable in
terruption to business operations,
and the whole outlook has been
such as to bring about a severe
curtailment in the volume of stock
and securities transactions, and to
compel very material lessening in
the market value of liberty bonds
and of other securities of the first
grade.
Philadelphia Is Cited.
In District No. (Philadelphia)
the congestion of freight and ac-
companying conditions have COM
bined with quieter state of
things in the markets and a larger
! relative public demand for medium
and lower priced goods, to alter in
some respects the general drift of
development of preceding months.
In District No. (PhiladeIphia)
| the general iron and steel market
has been mitch quieter lately and
buying has slackened. The level
! of prices continues firm. Some
mills have been fortunately stu
ated in possessing a large supply OF
raw materials. and orders in prac-
tically all lines are booked for a
long time ahead. so that manufac,
! turers feel that the present yeaI
should be a time of continued pros,
perity. This, however. is largely
contingent upon the development OF
better transportation and improve
ment in labor conditions.
Coal Situation Acute.
Coal conditions have been par.
ticularly important in connection
with iron and steel, as with otheI
industries. The state of things il
regard to coal is now very acute
in some districts. Railroads through
out the district have placed order:
for fuel for the next twelve months
the amount in every instance be
ing larger and the price higher thar
ever before" Production of btu
minous coal for thetcountry at larg,
during April amounted to 32.o06, 00(
tons, as compared with 46,7s2,00t
tons during March, and 3z.164,0ot
tons during March, 1919. the re
sective index numbers being Sc, ~
and 81.
Labor difficulties, although sporadi'
cally existing. appear to be a rela
ltively minor factor in coal produc'
ton as compared with the influence
tof car shortage. In the Southwest
many bituminous mines are operat'
ling at only about. two-thirds Of
Icapacity. No reduction of prices i:
in sight.
4 Labor still In Unrest.
The labor situation during the
Imonth has been one Of the out
standing elements of doubt and diff
lhculty. In addition to intense
shortage Of labor on farms and a.
lother points, of primary production
Isporadic strikes in many lines o.
manufacturing, notably textiles
have continued to indicate unrest
Wages have apparently fallen be
hind the advance in price and cos
lof living. The movement of labol
from the farms to the cities Is con
ltinuing. Various demands for highej
wages have been taken, under ad
lvisement for the purpose of bring
ing about compromise adjustment
between employers and employees
General complaint Of low .efficienc!
TOR small output per unit of labo
lcontinues to be prevalent. The diff
thculty of getting skilled labor IL
some Of the more highly developed
lines of manufacture Is very con
siderable"
tpphii- r~A-., sAryioaj H..