The Birmingham age-herald., 1921-07-01
PRICES HAVE NOT REACHED STABLE
 BASIS IN U. s.
June Business Activities h. conclusive With Respect to Probable Developments
 of the Future
By Associated Press

Washington, June 30,-June busi- ness activities in the United States. although showing an acceleration in price declines, were classed as in conclusive" with respect to probabl, 1, future developments by the months review of the federal reserve board. issued today. Theories that prices had reached a stable basis, foundet 1 on a slowing up of the price fall in May, the board found, were set asids by later records, and the board con cluded that it is even more evident that the close of the readjustment period has not yet been reached" in some lines of business, notably iron and steel
 In iron the board said. "it is now generally belived further readpust- ment or wages and prices is likely to occur, and that increased activity in 1t will certainly not be noted be- fore autumn
 Tn several branches of domestic
 o So"Au Sdio, because the month of June Is usually a period Of relative quiet and temporary re, action" good conditions have con- tihued, and such recessions as has occurred is evidently only seaconal." :"
 Unemployment Unchanged
 unemployment. continued practical ly unchanged the report said. "with shsht tendencles to betterment. nota oIs in agriculture. and with tend encles to increase here and there es. pecially in basic industries like iron :,
 Hesitation in purchasing.n ths board said marked all the channels ol distrioution with little improve nent in exports, but in banking there was noted "a steady growth of strength and Hquidity"
 me reserves of the federal re- serve banks have been much enlarged through continuous addition of gold '" me board said, while their ont standing liabilities have been rs- ouced Federal reserve notes out stahulng have continued to shrink anu interest rates have become more moderate during the month,
 A tendency toward "the evening up oi pfices in distributive channels. the board said, was noted during tho month resulting in the "passing on VI piice reductions to the consumer III the lorm or lower retail profits. .''
 rms was coupled with downward n'ooiIlcalon Of freight rates, with seasonal recession in many indus- tries' and continued downward re- adjustment in others while with
  prices apparently reaching a condi- .ion or greater stability. the outlook For autumn trade appears reasona- bly, encouraging"
 Some Industries Improyea
 In specific industries, the board reported marked improvement during May and June In all sections of tha country. Cotton conditions were rated st SC per cent of full normal n partial exception to the general ind ing Conditions of fruit crops varied greatly. the report said. with Iarra eastern sections producing cherries. peaches. pears and apples badly af- fected by frosts. Grapefruits, lines. plneapples, contaloupes and oranges were declared about the 10-year ay- craze.
 Grain moved in fairly large auan- titles during the month but Jour production dropped.
 Automobile production dropped off while textiles showed a mixed condi- ton, woolens coming out best. Mems garment manufacturers at Chicago reported decrease of 2S per cent in orders under last years total. Shoe manufacturers in general were busi- CT, and lumber output increased. while building operations increased h majority of the reserve districts. though dropping in some.
 Wholesale trade in general throughout the country remained fairly stable, with some increases to balance decreases. but retail trade as measured in dollar values,' con- tinued to fall, the board found, but it remarked that considering falling prices the volume of trade has been we'll maintained"
 Shipping was reported slacke with the comment that Obviously there can be no change in this situa ton until the world trade reviyes"
 Increasing stocks of petroleum in the country was compared with re- stricted bituminous coal production and decreases in iron and all non- ferrous metals.