OCR Text |
Show ipiiYfs Federal Reserve Board Publishes Pub-lishes Analysis of May Business Conditions WASHINGTON, May 30. Despite the recent reductions in prices little relief from the general reign of high prices is seen by the federal reserve board in its analysis of May business 'conditions made public tonight The board expressed the view that there has been no change in the underlying conditions responsible for the high cost of living. Asserting that while "store sales" and a tendency to lower prices bears witness to the presence of "disturbing factors," which suggest tho advent of wide alteration in price levels, the board declares it cannot accept the sit- juation as a whole for its face value. The explanation is added that there has been only a slight increase In pro- , ductlon and thcrq is no greater dis-1 'position on the part of general public to economize and invest than had ruled, heretofore. "The changes that have taken place, therefore," the board's analysis! 'says, "cannot be looked upon as Indi-j eating a modification of underlying conditions. They may, however, af-' ford a basis for changes in business relationships that may broaden into more far-reaching alteration of the essential es-sential -price structure." Business Everywhere Suffers. Business in every section of the country has suffered considerably from the freight jam which has prevented normal movement of products to markets. mar-kets. Effects of the tie-up arc noticed In tho agricultural districts as much as the Industrial areas, and that farmers farm-ers are not the smallest class which has sought more bank help in the wny of credit as a result. Results of ihe board's action In the direction of restricted loans already has begun t,o be evident, according to roports of the various reserve banks. In addition to a general reduction in the value as well ns volume of secur- i itles In the financial centers, there has I been a general revision of Interest rates affecting both commercial paper pa-per and call money, it is stated. Labor Situation Difficult. The labor situation during the month has been one of the outstanding elements ele-ments of "doubt and difficulty" and is one of the larger problems with which the country is expected to have to deal with the rest of the summer In addition to ntenlsc shortage of labor la-bor on farms and at other points of primary production, sporadic ntrikes have occurred in many linos of manufacturing, manu-facturing, notably the textile Industry, indicating. In the board's view, con- I ttnued unre.su "Wages apparently have fallen bo-hind bo-hind the advance In prices and the cost of living," the aate1 , ues. "The movement of labor from farm to city is continuing. Various 1 j demands for higher wages' have been taken under advisement for the purpose pur-pose of bringing about compromise adjustments. ad-justments. GenerRl complaint of low i efficiency or small output per unit of I labor is prevalent and the difficulty ol 'getting skilled labor in some of the Imor.e highly developed llne3 of manufacture manu-facture is now very considerable." |