The New York herald., 1921-04-17
Living Costs still High.

The railroad situation. credits and thu
many other underlying factors in tht
general situation were discussed. II
the mind of a high official the out
standing features OF the general testi
rnony of bankers and business men were
these:
/. There has been marked read
justment in business throughout the
United States, but this readjust-
ment has been by no means uni
form Prices in some commodities
have been cut far below those In
other similar lines.
2 Retail prices in general have
not followed the decline in whole
sale prices.
g. Some prices have been reduced
even below pre-war levels. partcu-
larly as affects producers and whole
salers, while others have not been
commensurately hit.
4. Wool and cotton producers and
wholesalers have been hit the
hardest.
5. The cost OF living has not been
reduced either In proportion TO the
reduction in commodity and raw
material prices. or in proportion to
the general reductions. This Ia as
cribed as due to the fact that rents,
fuel and transportation, Fundamental
factors in the cost OF living, have
not come down in proportion or In
any ratio commensurate with other
reductions.
s. Retailers have not reduced their
prices on the basis Of wholesale re-
ductions and consequently have not
passed along the general decline 10
consumers whose primary interest is
the cost OF living.
Z. Labor efficiency throughout the
United states has been greatly In
creased Laboring men and women
throughout the country have grown
to a greater appreciation OF jobs
Business Men Pulling Together.
S. SO far as the business COM
nunity is concerned wage reductions
are not as potent a factor as In
creased efficiency of labor and this .
increased efficiency Is largely solv-
Ing the question of ages, because OF
lowered costs of production through
out the country as a result OF in
creased efficiency.
Q. Wage adjustment in many OF
ne manufacturing industries of the
country has resolved into a question
of value received, or unit production
cost, and not the hourly or per diem
rate.
10. There Is little complaint
throughout the country either
against the rates for money or the
rates charged by the railroads. which
have been largely regarded as fun
damental in the situation There
seems a general realization that SER
vice must come first from the trans
portation system, but that on many
basic commodities rates must be re-
duced TO preserve the business and
economic structure.
IL. There is a general opinion
among the business and financial
leaders represented that a level must
be found. particularly on the basic
commodities, but in general on all
prices, so that the price return to
normalcy will not cripple one in
dustry to the benefit OF another.
IL. on the whole. business and
business men are over their nervous
ness and are prepared TO pull to-
sother and meet the situation in an
optimistic frame OF mind
10. On the whole. there Us. In fact.
q liberal policy on the part or the
banks toward renewal OF business
obligations. but some stringency as
70 new loans, as 10 their character
and probable ability to liqudate.
Directors mt the Conference.
In obtaining rst hand information q
TO the business situation Of the natio'
the reserve board summoned Class
directors to appear at the conferences
These directors are non-bankers con
nected with the business and industr.
OF their respective sections. Those VIII
appeared were.
Jesse l.. Metcalf. District No. !, Bos
tor-Mr. Meacalf Is an extensive manu-
facturer o.. distributor Of textiles.
Charles a. stone Of the Second Dis
trict New York senior member Of tn
firm OF stone & Webster, constructini
engineers.
Philadelphia former president OF til
Baldwin Locomotive Works, who wen
extensively into the railroad problem
Ds r. Coker, Hartsvile, s. c.. OF tn,
Fourth District, Richmond, cotton plant
er and merchant.
w III. Hartford or Atlanta, Sixth Dis
trict, hosiery manufacturer
~ G. Ball Of Muucie. Ind. Seventh
District Chicago, manufacturer OF glass
Jars
C.8 y !. Mooney, editor Of the Mem
rhia Commercial Appc7l for the Eight
~ 80 Lcuis Dist5sl
y L. lliSon, ~ crar' Ws brsines,