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Show OPTIMISM SHOWN iraoiie i Undue Speculation, However, How-ever, Is Subject of Warn- ing by Government. Too Free Use of Credit the Only Offset to Promise of Prosperous Year. Washington, July 2. Optimism as to the business outlook reported today in the federal reserve board's monthly statement state-ment of conditions was tempered with renewed re-newed warning against undue specula- ( tion. y "In nearly all the districts,' the board's statement said, "the opinion is entertained enter-tained that the prospects for a successful success-ful and prosperous year, with very lar.e 1 output of goods and almost unprecedented financial returns both to manufacturers, agriculturists and laborers, now are positive. pos-itive. The possibility that speculation may be carried too far and may exert an injurious in flue nee. aided and furthered by the existence of free credit and speculative specu-lative tendencies, appears as the principal prin-cipal offsetting influence in the situation." situa-tion." Prices continued to rise throughout June, the board's statement showed, and enormously heavy demand for goods for export had rendered products in many lines scarce. In nearly all districts it was 1 reported business men had decided they could rely upon heavy demand and continuously con-tinuously sustained prices for some time to come", while a feeling of apprehension entertained early in the year was disappearing, disap-pearing, jobbers and retailers" readily en-tering'into en-tering'into large commitment for :all and winter. Prospects Are Justified. ! In many respects the agricultural pros- 1 pects of the early spring are being more ! than justified. Wheat, corn, cotton, to-; to-; bacco and Pacific ctast crops will be I harvested in iecord quantities. Livestock 1 continues high in price. Pteel and iron experienced a distinct turn for the better. bet-ter. The fuel situation has been much below normal with prospects of a tight situation next winter. Metal mining industry in-dustry was again improving. . Manufacturing likewise took a strong upward turn during June. Demand for fine cotton poods exceeds production. Shoe factories are producing at maximum capacity, while heavy demand from Europe Eu-rope lias drawn off much of the available avail-able supply. Wool products are sold ahead for months. Automobile manufacturing manufac-turing is running in many plants at record rec-ord levels. Building shows continuation of the revival re-vival noted in previous months. Heavy buying of lumber by retailers has become general. There is much trading in houses and business property. "The labor situation has now reached a distinctly advanced stage of full employment," em-ployment," the board's statement said in commenting on employment conditions. Many Laborers Needed. "There is apparently no present condition condi-tion cf unemp'oyment; indeed, many industries in-dustries report they cannot et the men they need, whiie wages are fully up to 1 past leveis or higher. The requirements for farm help are absorbing s-.irphis labor In paticaily all tarts of the country. There is some surplus of unskilled workers work-ers in some center?, but this is not different dif-ferent from the condition in normal times. No reduction in wage scales is now foreseen. fore-seen. "One of the principal problems in the labor situation noten bv thoughtful oh- ! servers is the fact that clerks and of- ' fife employees as well as other workers i 1 receiving more f.v less fixe l incomes have I not yet. participated in the advance in ! I wages. Improvement for these classes of! i workers wlii be necessary if r,rices are to j j continue at their present level, b'u wi'l. i of course, add correspondingly to the cost ! of business to the. government. "Returning soldiers are being rapidly i 1 and steadily absorbed into business and the problem, which for a tire seamed to j threaten in this connection, is now apparently ap-parently minimized in all directions. From ) trie farming districts particularly comes j the report tVat the. supply of labor is j 5' an'y and likely to prove more so as i business progresses." j Gov ernment credit was reported in go" 1 j condition, as evidenced by the high and ' rising market for Li her v bonds of pra- I ticaily all issues, particularly Victory ! notes. j |