New-York tribune., 1920-07-30
Reserve Board
:. Reports Less
]: Speculation
n
Extravagant Buying Also
- Reduced, Says Monthly
Is Review, While Crops Eff
feet Turn for the Better
Rail Congestion Is Great
1000, 900 Tons of Freight
Tied Up iii Hands of
Producers of Country

- WASHINGTON, July 29.--Curtail-
rient of industrial activity due to
lower demand, cancellation of orders
standing developments in the business
of the country during July, the Fed
eral Reserve Board declared tonight
{ in its monthly review.
ain some districts, however. produc-
ton continues upon old orders which
are still on the books, despite the fact
that new business has fallen off" the
review declared. In the agricultural
regions improved crop conditions and
the development of more confident
tone in business are reported to have
brought about turn distinctly for
the better.
Speculation Reduced
"Speculation in commodities is. in
many parts of the country. reported to
have been greatly reduced and in some
practically eliminated. There is a
general feeling that extravarant buy
ing is at least less extreme and dan
gerous than it was some time ago
The transportation problem con-
tinued unsolved during the month, the
review reported. and, while some local
improvements were noted. there re-
mained great freight congestion, pro-
voking "an undue and unnecessarily
severe strain upon credit The iron
and steel industry "is now placed in 4
SERIOUS condition." according to the
review, which adds that 100000 tons
e product are tied up in the hands Of
the producers throughout the country
by lack of transportation. Likewise
tie grain movement has been retarded
BY car shortage.
Labor More Efficient
Commenting on the labor situation,
the board declares that an increase in
he efficiency Of labor was lone notable
feature" of the month, this improve
ment being attributed to the develop
ment of unemployment in various parts
of the country. Increased unemploy-
ment was ascribed by the boards re-
port to curtaled manufacturing opera
tions, cancellation of orders and in
ability to obtain capital for construc
tion work.
Coal production, the review also as
serted, is hampered by car shortage,
while local labor troubles were said to
be causing an undercurrent of unrest
in some districts. The coal output in
Pennsylvania, West Virginia. Indiena,
Ohio and Illinois was estimated at one
half or less of normal. with the coun-
try's total production averaging 9,000,
600 tons a week in comparison with
current demands showing a need for
1900 900 tons.
Prospects of winter and spring
wheat yield considerably above nor
nal" were reported by the Minneapolis
district, while the Pacific Coast reports
forecast a yield of 100000 more
bushels of spring wheat than in 1919.
The st. Louis district, however, said
the wheat there was low in quantity
but high in quality, while the Kansas
City district predicted big yield.
Other crops, including corn, oats and
cotton, were reported as having I'M
proved over recent months.
Livestock Conditions Good
Livestock conditions were said by
the board to be exceptionally good the
country over, with prices generally
higher except for sheep.
In the woolen and worsted goods in
dustry, the board found the yarn spin
ners receiving few inquiries for their
products, with conditions equally dis
couraging for finished textiles. Goods
returned to the mills together with
cancellations were estimated at $780,
100000.
Slackening of activity in cotton goods
also was reported Many mills declared
their raw cotton supplies were suffi-
cient to last until next year, and the
boards review said the chances seem
to favor furthr reductio of activity
in the industry.