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Show RECOVERING FROM WARONDITIDNS FEDERAL RESERVE BOARD REPORTS RE-PORTS PUBLIC SHOWING BUYING CAUTION. Describes Economic and Business Situation Sit-uation as a Whole as One Showing Much Inherent Strength Through Orderly Transition. Washington. Recovery from wnr and postwar conditions is "proceeding I apace in the United States" and the "natural forces in evidence which make for stabilization carry assurance assur-ance for the future," the federal reserve re-serve board declared on October 31, in its monthly review of business conditions. con-ditions. Although the readjustment process has been marked by uncertainty and some suspension of activity, the board described the economic and business situation as a whole as one showing "jnuch inherent strength and an ability to attain a position of relative stability through an orderly transition." It argued that the necessary changes in the direction of normal conditions would be accomplished without great disturbancec unless unforseen factors entered into the process. "Price revisions- in textile lines and in other branches of wearing apparel, as well as in numerous staple commodities," commo-dities," said the board, "have been the outstanding elements in the situation, just as during the preceding month. "Caution in buying, due to u belief that price readjustment is not yet over, has been a noteworthy factor, and in some quarters lias tended to slow down the activity of retail trade, although more apparent in the wholesale trade. Crop yields have, on the whole, justified justi-fied the expectation expressed at the opening of the month. Banking re-Serves re-Serves have held their own during the month, and there has been a steady improvement in the liquidity of paper. "Labor is less fully employed. . Notwithstanding Not-withstanding some sporadic cuts in wages here and there, the general position posi-tion is about as good as it has been so far as actual payments or rates of wages are concerned." While the retail trade reported a "moderate increase" in net sales as compared with last fall, the usual fall activity and buying was said to be not in evidence. The board attributed some of this condition to unseasonable weather. Reports from almost all sections indicated in-dicated that the retailer had determined determin-ed to await further developments before be-fore renewing his stocks heavily. The outstanding orders were reported to be small and the general purchasing activity ac-tivity of the retail merchant was described de-scribed as "very conservative." The manufacturer has felt the withholding with-holding of orders by the retailers, and, according to reports, has not been able to operate on full time in many lines of trade decause of a lack of orders. Cotton Cot-ton mills were mentioned specifically as having been hard hit by the slackening slack-ening of retail orders, while new business busi-ness in the iron and steel industry has actually decreased. In the shoe and leather industry the board found conditions similar to those in the cotton trade and other textiles. The leather interests are facing imminent im-minent shutdowns in many places because be-cause of the heavy decline in buying, the reports showed. |