Evening star., 1921-07-01
NORMALCY
NOT YET REACHED
Federal Board Says Read
justment in Some Lines
Still LADS.

S"tCo ctdlVs' oithOo6h 'iio
acceleration in price declines. were
classed as "inclusive" with respect to
probable future developments by the
monthly review Of the Federal Re-
serve Board. just issued. Theories
| ,hat prices had reached a Stable basis.
founded on a slowing up Of the price
fall in May. the board found were set
aside by later records, and the board
concluded that lit Is even more evil
dent that the close OF the readjust-
ment period has not yet been reached
In some lines Of business, notably
iron and steel.
In iron. the board said. lit is now
generally believed further readjust-
ment Of wages and prices is likely
to occur and that increased activity in
it will certainly not be noted before
autumn"
Mn several branches OF domestic
trade. the board said. because the
OF relative quiet and temporary re-
action" good conditions have con-
tinued, and such recession as has
occurred is evidently only seasonal.
Unemployment Unchanged.
Unemployment continued practical
~ unchanged. the report said. with
slight tendencies to betterment. no.
tably in agriculture. and with tend
encies to increase here and there, es-
pecially in basic industries like iron"
"Hcsitation in purchasinE. the
board said, marked all the channels
of distribution, with little improve
ment in exports. but in banking there
was noted "a steady growth of
strength and liquidity.'
The reserves of the federal re-
serve banks have been much enlarG-
ed through continuous addition OF
gold" the board said. while their
outstanding liabilities have been re-
duced. Federal reserve notes out
| standing have continued to shrink.
and interest rates have become more
moderate during the month.
Il 4 tendency toward the evening up
Of prices" in distributive channels.
the board said, was noted during the
month, resulting in the passing on of
price reductions to the consumer in
the form Of lower retail profits
Fall Outlook EncouraxinE.
n This was coupled with downward
notifications OF freight rates. with
/ seasonal recession in many industries.
/ and continued downward readjuStme I
| in others. while with productive pros
II poets favorable and prices apparently
II reaching a condition Of greater stabil-
\ ity. the outlook for autumn trade ap-
4 pears reasonably encouraging.
II In specific industries. the board re-
II ported marked improvement during
n May and June in all sections of the
H country" Cotton conditions rated at
II IS per cent Of full normal. partial
exception to the general finding. Con-
dition Of fruit crops varied greatly,
the report said. with large eastern
sections producing cherries. peaches
II pears and apples badly affected by
frost, grapefruits. lines. pineapples
III cantaloupes and oranges were declar.
III ed above the ten-year average.
Hin Grain moved in fairly large quanti-
III ties during the month. but flour pro.
Nj duction dropped. Live stock in the
VI west was favorably affected by good
III Yains on the ranges. and the mobiliza-
III tion of credit to assist growers was
III remarked. Increasing stocks of petro.
III cum in the country was compared
III with restricted bituminous coal pro-
Ill duction and decreases in iron and all
III nonferrous metals.
Trade Volume Maintained.
Automobile production dropped off
II while textiles showed a mixed condi-
ton. woolens coming out best Mems
garments manufacturers at Chicago
II reported a decrease of 2S per cent in
orders under last years total. Shoe
manufacturers in general were buster
ana lumber output increased. while
building operations increased in a
II majority OF ttS reserve districts
4 though dropping in some.
III Wholesale trade in general through
| out the country remained fairly stable.
Il with some increases to balance de-
H creases. but retail trade "as measured
in dollar values" continued to fall, the
H board found. but it remarked that con-
sidering falling prices the volume of
u trade has been well maintained"
| Shipping was reported slack, with
the comment that obviously there
can be no change in this situation un-
til world trade revives."
CLEVELAND, July 1.-The first
decline in the rents of Office build
ings in many months was recorded
today. when Josiah Kirby. owner of
the Kirby building. notified tenants
of a reduction Of per cent. Mr.
surance and labor still were high.
there had been a reduction in fuel
costs.
PITTSBURGH, July I'm anticipa-
tion Of a boom in building. mem bers
of the National Association of Win
dow Glass Manufacturers are plan
ming to reopen plants in all sections
of the country. which have been
closed since January Is. John r.
Johnston. jr.. of the association said
today: window glass manufacturers
are so convinced that we have now
passed over the economic obstacles
that confronted US several months
ago-in fact. UP to thirty days ago
| that they are willing to take the
chance Of reopening their plants"
He predicted that the factories would
be running at so per cent capacity
by September.
NEW YORK, July 1.-The seasonal
quiet which prevails in many lines of
the dry goods trade is a favorable
sign of the return to normal condi-
tions rather than an indication Of de-
preston. according to one factor
prominent in the industry today:
he said, that in the normal years be-
fore the war. we had periods of dull
| ness between seasons. The opera
tions during and since the war lost
their seasonal character. and unless
orders were coming in all the time,
questions as to the cause were asked.
| It now looks as though the season
was back, and seasonal dullness
should not be regarded as evidence of
lost demand. 1t should be regarded
as a very good sign Of normal times"
II MILWAUKEE,. July 1.-The employ
ing printers Of Milwaukee have taken
strike Of union employees scheduled
for today in support Of a demand for
the forty-four-hour week. The EN-
ploying Printers Association has
raised a fund Of $50. 900. and carries a
strike insurance for $1.500.000. A pro-
duction committee has been appointed
which will distribute work among
the various shops as it comes in. send
ing it to Chicago or elsewhere, if nee
has been formed Of executives and
mana1era who formerly worked as