Palisadian. [volume] (Cliffside Park, N.J.) 1906-current, 1920-07-03
Federal Reserve Board Says
Money Situation Has Shown
Distinct Improvement.
CROP PROSPECTS ARE FINE.
Control Of Credits Has Produced
Gradual Good Results-Aqricul-
tural and Railroad Situations
Better.

WaShlngtOn.-COntr of credit and
discrimination between non-essential
and speculative borrowing has produc-
ed gradual results, according to the re-
view Of business conditions for the
month of June, issued by the Federal
Reserve Board.
considerable variation in business
conditions. taking the country as
whole, is reported by Federal Reserve
agents. says the review. "In agricul-
tural production there Is perceptiblc
improvement in prospects, due to sea-
| sonable weather, good distribution Of
moisture, and the replanting of crops.
In manufacturing, conditions are in
some districts reported as chaotic,
ranging from extreme optimism 10
equally extreme pessimism.
1.-THE railroad situation has been
somewhat improved, but as yet not
sufficiently to warrant belief that the
effect Of the breakdown has been over
come. There is still great congestion
Of goods.
"In retail trade there is evidence If
decreased volume of demand in many
parts of the country, although some OF
this decline Is seasonal. Quite gener-
ally there is tendency to settle down
to readjustment basis and to proceed
with business upon the new level Of
prices and demand.
Control Of credit and discrimination
between non-essential and speculative
borrowing is producing some results,
although these are reported as devel-
oping themselves slowly and gradually.
The present price situation Is unset
tied and is being closely watched.
While some price reporting agencies
show reductions, others, including
among them the Bureau of Labor Sta
tistics, show increases In prices, due
perhaps to the different characters OF
the commodities used in making up in
dex numbers and the methods OF con-
struction, rather than in discrepancy
in prices themselves. Foodstufrs ana
essential commodities except clothing
and shoes, show little indication OF re-
duction. Luxuries and 'unessentials'
| have been in many lines distinctly cut.
Business is passing through a period
of readjustment and, in many direc-
lions, of depression. There Is, now
ever. every indication that this transit
ton period will not last long-indeed,
that the turn toward new condltlons
has already been taken.
in District No. (Boston) the out
standing features of the situation have
been more spectacular during May
than at any time since the armistice
for the force, which have been operat-
ing to produce liquidation of commodi-
ties have eliminated in an unmistak-
able manner. Cancellation Of orders
has been an important factor, while
price reductions, although not believed
permanent, have been important.
"In District No. 2 New York; specu-
lation has been depressed, although
the bond market has been more firmly
supported than for some months past.
Exporters report a softening In the for
eign demand for American products.
immigration is increasing, prices have
fallen in some lines quite decidedly
and retail trade has been stimulated
by recent reductions. Building con-
tinues inadequate"
The Board holds that the money
situation has shown distinct improve
ment during June.
The opinion Of bankers, not only In
New York but in various other finan-
cial centers, is to the effect that the
money situation has shown a distinct
improvement during the month, and
this view Is borne out by reports Of
various Federal Reserve agents who
state that the Federal Reserve bank
policy, aided by cooperation Of men,
Der banks, is convincing would-be bor-
rowers that there must be revision
Of their applications with view to
eliminating all unnecessary or uneS-