Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-01-01
CONDITIONS GOOD /
ON THE WHOLE, VIEW
OF Federal RESERVE

Boston, Dec. 31-Production In
whole In New England is not far
from normal, there is little unemploy-
ment, wages are high and the pur-
chasing power of the people is good
i'll relation to commodity prices. says
the monthly review of the Federal
Reserve bank of Boston, issued to-
night. 1t is difficult, however, the
review says, to forecast the direc-
ton OF the next general major trend
in business because Of conflicting
tendencies.
THE usual autumn peak of manu-
featuring activity has been passed,
the review says. 80 that some of the
reports of curtailed production WHICH
are received during December were
not unexpected. In certain indus
tries. such as cotton manufacturing.
the reported curtailment was even
more than seasonal. Taking manu-
featuring establishments in New
England as a whole. however. the
rate of production is apparently not
far from what might be termed not
mal--that is. average, or part way
between the peak reached in times
OF prosperity and the bottom rcachqd
during Il depression. There is little
Unemployment. and wages are high
The purchasing power of the people
is good in relation to commodity PIT
ccs, although the stan dard OF living
seems nowadays to require so mary
extra things formerly classed as lu23,
urics that trade i'm some necessities
has suffercd.*
Department store sales In thA'
district were larger this autumn thar
y wear ago. and insofar ms this ~
typical of retail trade rs whole, the
results are encouraging. The In
crease compared with last year is
not as large as most merchants eX-
pected. nor. perhaps as large as they
were estimated to make, in view OF
the slighter higher prices this year
than last and the normal growth OF
the stores.
price changes in the various com =
modities have nearly counterbalanced
one another during the past lew
weeks, so that the general average
has been more or less static, with Il
tendency toward n slightly lower
rather than n higher level. In TACT
the business situation as Wnoie
is in a somewhat similar SITUATION
At such times 1t is quite difficult 10
forecast the direction of the next
general major trend hccause, 1t Is
hard to foretell which of the Factors
already at work will become 50 I'M
Dortant that they in time VIII pro-
vide the impetus needed to turn con-
flicting tendencies into a broad gem
eral movement of the business trend
1.-THE present situation is. there
fore. one of relatively large vol
,Ime of distribution Of goods to the
ultimate consumer, n neEllSlbie
amount of unemployment, and pro-
duction reduced to nearly or even pc
low the requirements Of shipments
Then, too, credit is relatively cheap
and much more readily obtalnaole
than is usually the case during a Pc
Rod when production has been de
cIininc for several months. There is
q large volume of new construction
under way, and the recent tendency
has been toward an increase rather
than a curtailment. Renewed buiid-
ing activity was one Of the founaa-
tons upon which the business re-
coyerv of 1922 was based.
THE present irregularity IN the
general situation is apt to continue
however. until some OF the factors
whether those working for GOOD or
for bad canno now he foretold-op-
crate more forcefulIy than they DO
at present"