The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-01-03
DEPRESSION BRINGS
UNEMPLOYMENT
PRICE RECESSION ENLARGES
ARMY OF WORKMEN WITHOUT
JOBS-BOARD GIVES REVIEW
OF BUSINESS-COMMODITY
PRICES DECLINED EIGHT AND
ONE.HALF PER CENT LAST
MONTH.-FEDERAL RESERVE
ISSUE STATEMENT.

Washington, Jan. 2.-Further de-
cline in price coupled with increased
unemployment accompanied the coun
try's continued progress in readjust-
ment during December, according to
the monthly review of general bus
mess and financial conditions issued
tonight by the federal reserve board.
The price decline during the month
was placed at 8 1-2 per cent. by the
board which added the observation
that the decrease in prices was main
ly confined to comodities which had
shown a decline previously rather
than an extension of price cutting
to other industries.
The decline was reported as most
marked in agricultural products, tex
tiles, hides, leather and iron and
steel products, while coal petroleum
gasoline, paper, brick and cement re-
manned largely unaffected. Some re-
ductions were reported in the open
market in the latter group of COM
hedities, the board said, but con-
tract prices appeared to be at the
same level as in earlier months.
Business Slackens.
Reduced business activity, the
board stated, cut operations in many
lines from 40 per cent. to rs per
cent, of normal and Brought accom-
panying unemployment. The shrink
age of demand, the board reported,
also was responsible for wage cuts
running as high as rs per cent. in
some lines.
Banking power, on the other hand,
was we'll maintained, the board as
serted, normal credit accommodation
extended to legitimate business, the
reserve ration growing stronger and
inter-reserve borrowing in part
liquidated. With liquidation of loans
at the member banks beginning, the
board forecast better conditions.
Business in wholesale and manu-
featuring lines was reported mac
tive in the Richmond district build
ing operations at a minimum and
unemployment prevalent, but signs
of improvement are noted.
Most of the cotton crop has been
harvested in the Atlantic district,
but is being largely held, while
farmers generally feel the effect OF
low prices. Other markets in the
districts are quiet, coal production
has increased and lower prices of
pig iron have not produced any
great amount.
Rains Hurt Staple.
Throughout the cotton belt rains
have delayed picking to some extent,
while in some sections farmers are
reported to be abandoning because
Of the decline in price and the rela-
tive scarcity of pickers, together
with the high wages demanded.
There has been considerable dete-
rioration in the quality Of the lint
due to the wet weathen. and the,
bulk of:the. ginning is reported to; be.
grading below middlng.. -::ct : - ): !.
Movement of cotton has been rela-
lively slow, receipts showing sharp
and unreasonable falling aft. In
some sections it is reported that
sellers have complained that they
were unable to sell their cotton at
any price unless it was of superior
grade. However, cotton farmers in
many sections show tendency to
hold as much as possible of their
crop off the market in the hope OF
an advance. Considerable thought
has been given to the reduction of
next years acreage.
Purchases Below Normal
Although a slight increase in the
buying of cotton by New England
mills has occurred during the last
month, purchases have been below
normal, while mills in the Carollnas
are said "to have been out of the
! market for some time"