Middletown transcript., 1921-05-07
RETAIL PRICES
CHECK TO NORMAL
Reserve Board Declares Them
Main Factor
BUSINESS RECOVERY SLOW
Labor Problem RevieWed-Reductions
Found To Be Uneven, Organized
Groups Having The
Advantage.

Washington.-Reta prices appear
to be the sticking" point in the coun-
try's readjustment process, the Fed.
eral Reserve Board said in a general
review of business and financial con-
ditions for April! Other factors retard
ing readjustment were said to be high
transportation charges, wages, and
steel prices.
Increasing appreciation OF the ma
ture OF the readjustment process IN
business circles and the community at
large. however, the Board said, is TO-
cusing attention upon the factors that
are delaying business recovery and is
promoting discussion with view to
removing obstacles and expediting re-
covery
Complete business recovery, the
Board continued, has been slower than
was predicted generally at the close
of the past year and expectations that
this spring would see economic and
business readjustment fairly completed
have not been realized. Nevertheless.
it added, the month of April has given
evidence of an improved feeling de,
veloping with regard to business and
the outlook generally.
While there is still some uncer
tainty, the Board asserted, as to when
an end of the readjustment process
may be expected and though business
and industry in some sections Of the
country are still beset with difficulties
some Of the factors of uncertainty are
either being eliminated or are Of di
minishing Importance.
Prices, the review continued, have
been the pivotal point in the business
situation since the recession move
ment began last autumn. The fall in
wholesale prices, which has been con
tinuous and at times precipitate. II
declared, appears to be in process
of arrest. they having shown greater
degree Of liability during April.
Extreme unevenness in price reduc
tions. however. the Board said. is one
of the striking features in the present
industrial situation. While in many
important lines of wholesale trade
pre-war prices exist in other lines
commodities are being sold at twice
or even more than twice the 1913
values. The same unevenness exists
the Board explained, between ra"
materials and the finished products
in the same industry.
Raw cotton the Board declared. is
lower than the 1913 level and WOO
is about = third higher than before
the war but cotton goods are al
least 20 per cent. higher than in 1913
and wooden cloth is approximatel!
twice as high as the pre-War level
In the hide and leather industry the
discrepancy is even greater, the
Board asserted, the present price OF
skins being one-third under prevail
levels. while the price OF shoes Is
twice as high as in 1913.
While labor has been participating
in the readjustment process. the par
ticipation has been uneven as between
adjustment it said. has been
greater among unskilled workers and
those moi possessed of strong labor
trade organization and especially in
those sections of the country whose
industries have felt in a peculiarly
high degree the effects of readjust
ment.'
The agricultural situation during
the month was characterized as gen
orally favorable, although the fruit
growing sections suffered from cold
waves. Good progress has been made
in planting crop in the Cotton
States. while grain movement has
increased.