The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1921-05-02
BLOCK RETURN
TO NDRMALCY
STIFF RETAIL PRICES LISTED AS
CHIEF HANDICAP.

Washington, d. c., May I'm
yielding retail prices, the relatively
high cost of coal, steel and other i'm
portant requisites of production.
high freight rates and the continu-
ing high level of wages are the chief
factors retarding that return to nor
malcy' which President Harding is
striving to accomplish.
This is the opinion of the Fed
eral reserve board after surveying
the financial and general business
conditions in the country during
April.
The expectation that the spring of
1921 would usher in complete busi-
ness recovery, the board finds unrea-
lized. 1t is difficult to forsee when
the process of readjustment will
culminate, but an improved feeling
is beginning to materialize in the
business world. The board finds that
-~hOlesale prices were more stable
90 pril and buyers "are showing an
increasing disposition to regard pres
ent price levels as a satisfactory ba-
sis for dealings"
Wage readjustments vary accord
ing to local industries and groups of
labor, and have been greater among
unskilled workers and those not pos
sessed OF a strong trade organiza-
ton, and especially in the sections
of the country whose industries have
felt in peculiarly high degree the
effects of a readjustment."
Extreme unevenness of price reduc-
tions is one of the striking features
of the present industrial situation,
prices or something approaching
them exist in many important lines of
wholesale, while at the same time
other lines of commodities are being
sold at twice or even more than
twice 1913 values. The same uneven
ness exists in extreme cases between
prices of raw materials and finished
goods in the same industry.
Washington, D. c.. May 2-Retail
prices appear to be the sticking
point" in the country's readjustment
process, the federal reserve board
said tonight in it's April review
Other factors retarding readjustment
were said to be high transportation
charges, wages and coal and steel
prices.
Increasing approach of the read
justment process in business circles
and the community, however, the
board said, is developing. While
there is still some business recovery
and is promoting discussion with a
view to removing obstacles.
Complete business recovery, the
board continued, has been slower
than was predicted. Nevertheless, it
added, April has given evidence of
an improved feeling developing.
While there is still some uncertainty
as to when an end of the readjust-
ment period may be expected and
though business and industry in some
sections are not beset with difficult
ties some factors of uncertainty are
each being eliminated and are di-
minishing. The fall in wholesale
prices which has been continued, it
declared, appears to be in a process
of arrest, having shown a greater de-
gree of stability during April.
Raw cotton, the board declared, is
lower than the 1913 level, and wool
is about a third higher, but cotton
goods are at least 20 ped cent high
er than in 1913, and woolen cloth is
approximately twice as high. In the
hide and leather industry the dis
crepancy is greater, the board as
serted, the price il skins being one
third under pre-war levels, while the
price of shoes is twice as high as in
1913.
While labor has been participating
in the readjustment process, the
board continued, the participation
has been uneven.
The agricultural situation was
characterized as generally favorable,
although the fruit growing sections
suffered from cold waves.
Little demand for coal Is reported,
the board said, but petroleum pro-
duction has gained. A continued in
crease in the manufacturing activity
of the silk mills was reported.