Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-04-02

New York. April 1.-OBy A. P.)-
Perhaps the chief object of interest
In financial and commercial quar-
ters during the past week was the
bl-yearly meeting sof the Federal
Reserve Board with the governors OF
the several. regional banks,
Due to rumors of impending ad-
VanceS in discount rates which have
been in circulation for asnumber of
weeks. it was thought that the board
might arrive at and announce a
policy at this meeting. On this
basis a considerable volume OF sell
ling appeared in the chief spccula-
tive markets, cotton rcceding about
! cents from the recent high and
stocks and bonds displaying a dis
tinctly reactionary tone. A tendency
toward caution was apparent on all
sides.
Actually, the meeting developed
little that was, definite with regard
to the Federal Reserve policy. On
tuesday. a statement was given out
declaring that there was no basis
FOR any rumors with regard to the
Boards intentions. while at Nthe
close OF the conference on Thurs
day, another statement rather en-
pRasized the usual nature of the
discussions and made no reference
to Il rate policy.
1t was considered i'm most quar-
tiers that the events of the week *in-
Dictated no immediate change lin Of
fetal rates and the markets steadied
on this basis. They did not. however
display any particular tendency to
rally and lapsed into dizziness.
Although the conference out
WQrdly resulted negatively. it did
serve TO draw attention to the ques-
ton of the formulation of a proper
banking policy. AS usual in such
matters, opinion lacked uniformity.
In some quarters. it was maintained
that the Federal Reserve Banks
should not act until their rc-dis-
counts show q larger increase than
at present is the case. Others. how
ever, held TO the view that employ
mentis now full and that production
is at. or close to the maximum at
tainahle. According to this view.
additional expansion of credit will
not produce a proportionate increase
in production. but will go to finance
increased cost and prices.
In this connection, the recent .in-
creases in wages in the textile in
dustry Were pointed to and the claim
was set up that the stage is being
reached at which labor is becoming
less, rattan than more efficient. 1t
was also stated that further price
imitation would be principally in the
commodities in which the best of
industrial labor is a large element
that it would in,rease the disparity
between the prices OF different
groups of commodities and that it
would diminish the farmers pur-
chas power.
Reports from industrial districts,
meanwhile, confirmed the impress
sion ofe extraordinary activity. Pig
iron production has shown a fur
Their increase and steel output has
aboutr cached the limits of eX-
pansion. Steel manufacturers.
nevertheless. are falling behind on
deliveries and prices still are show
ing a disposition to move upward.
A certain amount of resistance is
beginning to develop on account of
high prices. as in the case of equip
ment buying by the railroads.
Equipment makers have sufficient
orders. however. TO carry them close
to the end OF the year.
Railroad traffic continues to run
heavy. weekly loadinss setting new
records for the season of the year.
despite recent sewers weather Feb
ruary earnings for so class | roads
reveal the effects of the severe
storms in that month. Although
gross income is $37.000,000 larger
than in February Il year AGO net is
S19.000.G00 smaller at S.'G2.OtU.0O0.
This showing contrasts with that in
January when Il good gain was re-
corded over the previous January.
but is ready eXplainable on account
flnLn 1.-rr L.