Perth Amboy evening news., 1920-07-06
Better Conditions
For the Consumer
By w 8. MANN.
(copyrseht, 1910. by The Washington
starr

washington, July 6.-General I'M
provement in conditions that enect
the great body of consumers Is IN
dicated in a report Just s puoic
by the Federal Reserve Board. cover
ing Important lines of activity IN
every mart Of the United States. par
ticularly the condition Of food crops
co~ncerning which there has been
much uneasiness In the East during
recent months. -
In industrial centers the CHIEF
trouble is due to the shortage OF rail-
road cars, and a resume of the re-
port shows that difficulty to be n
greatest drag on the immediate
progress of business. Particularly
Is this true in the large coal
mining centers and in the iron
and steel industry, but it is also
affecting the movement of grain, and
Is directly and indirectly interfering
with manufacturing.
The business and financial review
In which these conditions are outlined
Il in the form OF the usual monthly
report of the board. but coming at
the close of the fiscal year 1t u more
comprehensive than usual. The Shoe
Industry, which because of hign
prices has been attracting the atten-
ton of amateur n professional
economists, appear to hav struck a
very serious slump. from the Boston
district it is reported that not WITHIN
the memory of the Oldest dealer In
leather has the market been so stag
nam as during the last TWO months.
Retailers, jobbers and wholesalers
have been returning goods. order
have been cancelled to an unpre-
cedented extent, many t~anneries have
closed down entirely. and prices are
Off from the former high levels. The
report predicts, however, that I
shoes will be at relatively high levels
of price" In the shoe centers around
st. Louis and in Richmond similar
conditions prevail and, lower prices
now obtain.
What is true in the shoe industry
is to some extent the case In the
clothing trade, and the statement is
made that mems clothing Is, perhaps,
more depressed than n other in
dustry, with buyers holding of in ex-
pectation of lower prices. Heavy
cancellation of orders have occurred,
resulting in many factories closing or
operating only part time, and the
demand for higher wages n
shorter hours seems to be abating.
Though the report does not say 1t
in so many words, 1t indicates that
the buying public is tired of paying
unprecedented prices and Is wearing
old clothes and making other econo-
mics to keep from paying two prices
for everything 1t buys.
1T Is stated that sales of neces-
stiles apart from food have declined
even more than the sales of luxu-
ries,' says the review. Retailers
a. $50 AtwV 10 n
replenishing of stocks. tending to
conhne purchases to current needs
only.
The volume of retail trade has
continued large. due in part to tho
reduction in retail prices which
commenced in May. This movement
has been universal, although in GER.
tain districts, for example, Dallas, not
nearly so general or widespread as
in the north and east. While the
movement was aided by refusal on
the part of the public to pay the
high prices prevailing. as we'll as to
the difficulties in financing high
priced stocks, a counterbalancing
has been found in the tendency of
wholesale prices in a large measure
to be maintained al current levels.
and the opinion has been expressed
That III pIAC0 E1AC0 IA
many cases involved merely anticipa-
ton Of the customary mid-season
clearance sales"
A decisive factor in the business
situation has been the falling off in
building activity as a result of the
very high prices of materials. This
is especially noticeable as this time
of the year is usually the most active
in that lima of industry. In no sec
ton of the country is there any con-
siderable amount of building being
done, though high rents seem to be
the general rule.
The s~lackening in building activi-
ty has led to a decline in lumber
prices. which have been more or
less constant for the last four
months, and the production of
southern pine is beginning to fall
off. stocks have accumulated be-
cause Of inability to move them, and
price reductions of as much as Is
per cent, have been made in con-
sequence.
Possibly the most encouraging
factor reported has been the advance
in the condition of seasonal crops"
says the reserve boards review.
From Minneapolis it is reported that
rains have been widespread and the
dry sections in Montana and western
North Dakota have received ade-
quate moisture, while the wheat
crop, although with a somewhat re-
duced acreage. shows an excellent
stand. Corn shows a large acreage.
there is a satisfactory grass and
forage outlook. and the cutting Of
alfalfa will be heavy.
The wheat situation in the Kan
sas City district is likewise reported
very much better. Winter wheat made
remarkable improvement in May and
there is promise of a much larger
yield than was predicted at the be-
ginning IF the month. In Kansas
the wheat crop may be the third best
in the history of the state. Spring
wheat is also reported as very fine
with a yield about normal. In spite
of reduced acreage. Corn is showing