Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1920-06-09
DECREASE IN H. C.L.
IS BELIEVED NEAR
Lower Prices ForeShadowed by
Federal Reserve Bank.
THRIFT, SHORT CREDIT CITED
Seventh District Report Made Public
at Chicago Finds Rail Tieup Is
Crave Menace, but Congestion
is Easing.

Chicago. May pa general revi-
sion downward of prices of all com
moditieS except food, growing ten
dency toward thrift, and Improvement
In the labor situation. are three en-
couraging factors in the report of tle
Seventh Federal Reserve district, is
sued here.
a decided reimbursement of the eco
nomic and social influences governing
our national life is being anticipated
by the business world, the report says,
with the situation complicated by the
lack OF any precedent by which bust
ness men might be guided.
Probably the most disturbing ele-
ment in the entire situation" the
statement adds, "is the almost demon
allied condition of our railroads,
transportation being on the verge Of
breakdown by reason of shortage
of freight cars and serious conges-
ton in all leading railroad ceners,
caused by the strike of switchmen and
other rail workers.
Forecast n. Z. l.. slump.
"The credit supply still is restrict
ed and the demand outstrips any pre-
yious total in the history of the world.
Lastly, but by no means the least Inn
portant there is the additional com
plication of growing signs of a general
revision Of prices of all commodities,
with the trend In most cases down
ward"
The continued high prices of food
is the most important exception, the
review states, adding;
"Other living costs. however, offer
great encouragement particularly the
price OF clothing and shoes. EXplana-
ton of this situation is not hard to
find. Prices of clothing and dry goods
generally had reached such heights as
TO be almost prohibltive and the pub
lie quite naturally curtaled purchases
very materially.
Note Greater Thrift.
"A most encouraging development OF
the last month has been growing
| tendency on the part of the general
public toward thrift. Ever since the
srmistiCe was signed people have been
INDUCING in wild spending orgy. buy
ing only the highest-priced goods and
satisfying extravagances almost 10 an
extreme. This spending hysteria now
seems to he waning, although the
change is not yet pronounced"
Harding Urges Decreased Loans.
Washington, May 26.- Economy in
Individual expenditures. reduction OF
ncn-essential loans by banks. increased
production and improved transporta.
tion are needed to reduce the cost OF
living and debate credits, Governor
Harding of the federal reserve board
declared In responding to a senate res
oluti0n Of inquiry.
The board Is not prepared 10 define
| what are essential and nonessential
loans, Governor Harding stated. This
he said, is a problem for local bank.
ers, familiar with local needs.
| Governor Hardng's letter. presented
TO the senate by Vice President Mar
shall came in response TO the reso
| luton IF Senator Mccormick (Rep.)
Of Il'rois, adopted recently, request
ing Information regarding what steps
the board contemplated ito meet tn,
existing imitation Of currency and cred
Its and consequent high prices" ane
what measures were proposed to mo
bike credits for movement of the 1921
crop.
Governor Harding told of the recen
conference here Of the federal reserve
advisory council and its recommends
lions for curtallment of credits. TO
gether with the opinion that conges
ton Of transportation facilities is ty
ing up great quantities of foodstuffs