The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1920-06-11
FEDERAL BOARD THINKS FluR.
~ OF REDUCTIONS Is ONLY
A PASSING WhiM
PRODUCTION NOT INCREASING
People Still Are Disinclined to Save
and lnvest.-Causes Of High Prices
Are Unaffected by Sales Put
on BY Stores Over Country


recent reductions in prices. little re-
| lief from the general reign of high
prices is seen by the federal reserve
| board in it's analysis Of May business
conditions, made public last night.
| The board expressed the view that
| there has been 40 change in the nn-
| deriving conditions responsible for the
| high cost of living.
Asserting that while store sales
| and Il tendency to lower prices bears
| witness to the presence of disturb
| ing factors" which suggest the adj
vent of wide alteration in price levels.
| the hoard declares il can not accept
| the situation a> Il whole for its race
| value. The explanation is added that
| there has been only Il slight increase
| in production and there is II" greater
| disposition on the part Of the general
| public 10 ecOnOmiZe and invest than
had ruled heretofore.
THE changes that have taken place.
| therefore," the boards analysis says.
cannot lie looked upon as indicating
| II modification Of underlying condi-
tion>. They may. however. afford
| basis for changes in business relation
ships that may broaden int" more far
reaching alterations Of the essential
price structure.
Business in every part of the coun-
| try has suffered considerably from the
| freight lam. which has prevented nor
| nal movement Of products TO markets.
| Effects Of the 1ieup are noticed in the
| agricultural districts us much as the
| industrial areas. and farmers are not
| the smallest class which has sought
more bank help in the way of credit
| us Il result.
Results of the boards acrIon in the
| direction Of restricted loans already
| has begun to he evident. according to
! reports IF the various reserve banks.
| In addition to II general reduction in
the value as We'll as volume of >ecuri-
| ties traded in the financial centerS.
there has been Il general revision II
interest rates affecting paper and can
money. it is stated.
! The labor situation durin. the
!
| month has been one of the Ou1Stand'
| ing elements of doubt and difficulty.
| and is one of the larger problems With
| which the country is expected 10 have
| to deal the remainder of the summer.
| In addition To intense shortage of Ia
| Dor on farms and ut other points of
| primary prodnction. sporadic strikes
| in If l.tI
| featuring. notably the textile indus
try. indicating. in the boards view.
continued unrest.
wages have apparently fallen be-
| hind the advance in prices ami the cost
Of living the statement continues.
."rhe movement of labor from farm To
city is continuing. Various demands
for higher wages have been taken I'M
der advisement for the purpose of
| bringing about compromise adjust
mentS. General complaint of low eff
ficency or small output per unit of
labor in some of the more highly de-
veloped lines of manufacture is now
very considerable.
."The disturbing factors have ma
terially affected many lines of manu-
featuring. although general manufac-
turing continues in substantial vol
ume Cancellations of orders in both
cotton and wool. by the iobhing and re-
| tail trade. have not YET reached large
proportions. but they are ALREADY no.
,iceable." This has resulted in some
| manufacturers being forced to make
concessions to retailers" who We're de-
scribed as being quite unsettled
Regarding the Ninth district the re-
view said: Crop conditions are prom
| Using. The demand for credit is very
strong and the business outlook is sat
isfactory although there is Il DISPOSE.
! ton to he cautious.