Arizona republican., 1920-04-01


 WASHINGTON, March 31.-Na
 tion-wide reports from federal re-
 serve bank officials, made public
 tonight, disclose their opinion that
 the postwar era of "extravagance
 and reckless buying" by the public
 IS nearing its end.
 "A hesitation, if not an actual re- cession," of prices is noted and the federal reserve boards statement sum marizes it's advices as indicating a gen orally more hopeful view of the coun- tryS business condition than for sev- eral months.
 While the price changes were shown by the board not to be universal they were nevertheless regarded as positive and of importance as basis for reck- oning what the immediate future holds.
 Relief from the high prices for the consumers will not be completely ob- seained until stocks are absorbed in all lines, according to the boards view. Manufacturers everywhere, however, were shown to hold the view that the peak of high prices had been reached and to expect gradual recession.
 Tn the clothing trade particularly, the board said there was marked ten dency of the public to make old sup plies last longer and to refuse to pay exorbitant prices. This phase cHn mean only that an awakening has come, the statement said, and that many peo- pie have arrived at the conclusion that they are themselves responsible for a continuing high range of prices.
 Orders SIacken and Prices Hesitate
 Wholesalers in the dry goods trade, to some extent, have taken q com mendator attitude" and are discourag ing their customers from placing heavy fall orders. This has served to slacken demand and create a feeling that lower prices will follow.
 The reports do not give encourage ment concerning a price reduction in shoes; there was, however. a wide di- vergence of opinion as to what shoe and leather prices will do.
 Eastern seaboard cities reported a 'spiling up of commodities on this side of the Atlantic. The exchange situa- tion was beginning to reflect itself on the export as well as through a general reduction by Europeans in their foreign buying. it was noted
 Business and financial developments during March also were marked by confusion and lack of uniformity or opinion. reports from the several re- serve districts showed. But through out the detailed observations of these officials there was a. distinctly optim istic tone. Summed up, it was:
 "The outlook for the spring season, both industriaIIy and agricuturaIly, is excellent. But modifying factors in the supply and shortage of various kinds of building material, as well as borrowing facilities of banks"
 The Public Is Helping
 Officials said that the full meaning of the changed attitude of the public probably would show definite results so slowly as to be almost imperceptible. They explained that it was a step in the right direction and that it's value was increased because there had been no appreciable letting down in the volume of legitimate business.
 The housing situation continued acute throughout the country, partly as 2 result of labor conditions but more largely because thousands of families are deserting the farms for what they believe are "greater opportunities" in the cities There was. however. an other reason advanced: Capital is slow to engage in new building ventures be- cause of the ''unfavorable conditions of taxation" This. of course, applies to general construction work well as to housing in the limited sense, the statement said-
 Production conditions the country over" the statement continued. "give every reason for encouragement with reference to actual industrial and agri-
 
 look. so far as can be judged at this season, is hopeful. There. is a sub stantiaI degree of harmony between capital and labor, as indicated by small unemployment.
 Production Problem
 tsT'he difficulties in sight are due to conditions of relative der-production or decrease of production resulting from lessened activity of both capital and labor, problems arising out of heavy taxation and measures resulting from the one sided working of the tax laws, while, financially speaking, cau- tion' and conservatism are called for and the efforts to restrict the volume of credit have been only partially suc- cessful. As result high interest rates and a relative scarcity of funds will continue to prevail during the period in which the country is endeavoring to extend it's productive capacity and to overcome the relative loss of prog ress resulting from war limitations upon investment and production" DFI hNhRF Fh|Ie m