The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1921-07-14
BUSINESS LINES
ARE SLOWING UP
High Living Cost and Wages :
Are Descending
Together.
RESUME GIVEN BY
4TH RESERVE BANK
Efficient Work and Careful
Buying Offered as So
luton of Present
Problems.

The following resume of Industrial
conditions in the Fourth Federal Re-
serve District is quoted from the cur-
rent issue of the Business Review, is
sued by Reserve Bank of Cleveland:
There has been a decided slowing
up in many lines of business during
the past month. Passing through the
period of readjustment we have be-
come accustomed to sudden changes
and it takes considerable jolt to
surprise us. But the thought that
various lines of business which show
ed such promising squirt last spring,
are now losing ground, is not pleas
ant one. If we remember only that
unemployment is plentiful, that wage
scales and prices are unsettled, that
the iron and steel industry is at low
ebb, and that the transportation prob
lem is still unsettled, the outlook is
not encouraging. However, if we
stop to consider that the crop OUT
look is good, that the financial condi-
ton of the country is sound, that con-
sumption at present is in advance of
production, that we have labor, fac
tories and raw material to produce
goods, then it is not so difficult to see
b,,c;oaec ~, tho ,orrada
A heavy train running at full speed
cannot be brought to sudden stop
without damage to some machinery.
When prices reach their, peak and re-
adjustment began, many manufacture
ers failed to heed the danger signals
and continued to operate at full speed
and packed their warehouses with fin
ished goods.
Frozen credits" which seriously
handicapped thereadjustment process,
:. was the result. At the present time
the manufacturer is keeping his finger
on the buyers pulse and the slowing
up process can be accomplished with
, out serious damage. He is gauging.
his output by actual orders.
: However, this hand-to-mouth policy
: is not always without serious damage
: is not always the best one. There Of
/ ten comes time when reserve sup
ply is in demand.
The let-up in business may be at
tributed to summer inactivity-or to the
fact that the public is not buying, both
: of which factors are partially respon-
= sble, but the real cause is that our in
1 dustries lack the stabilizing influence
of foreign trade. .
While the buyers strike" is still in
progress to some extent in various To-
i calities, sentiment appears to be grad
{ ually changing and now when people
= do not buy, it is as rule because
: their pay envelope is not so large and
) they are spending their money with
r greater care, rather than that they are
e waiting for the retailer to make the
2 next move.
s There is a wide difference of opin-
ion throughout this District as to
whether the cost Of living has been
2 lowered commensurate with the de-
3 cline in wages. So many different
factors enter in that it is difficult to
| make decision, but the general i'm
> preston is that both are coming down
= on somewhat equal basis.
1t has been said that the national sin
, of America is extravaganza With the
: reduction of wages, the question natur
ally. arises as to whether we shall have
'' to cut out some of the 1uxuries to
:" which we have become accustomed
During the era of high prices we form
:, ed habits which will be hard to break
: We enjoy luxuries and the luxury oi
= today becomes the necessity of tomor,
\. row, out we are gradually becoming
y more sensible in our ideas Of living
While each member Of the family ma,
not be able to own his car, our presen
high standard Of living will not b
: greatly changed and we can maintain
4 it by efficient work and careful buy
IS ing.
During the war period, tremendous
m tendency toward inefficiency and lacl
II Of application grew up. While thi
n led to various evils, at least one goo,
n result Is in evidence. Many manufac
of turers have been taught 10 better ap
le preciate the true value Of the man VIII,
le is willing 70 give a good honest day
le work IN return for x good honest day
nav. s