Omaha daily bee., 1920-10-01
[Buyers.to
Feel Price
Cuts Soon
.AConsumers May Notice Re-
ductions i'm Commodities in
Near Future, Reserve
Board Says.
Production Increases S
Dy The Associated Press.

Washington, Sept. 5u.-Prlce.cUt,
ing has taken hold of the whole.
sale trade TO an extent that soon
must be felt substantially in lower
prices 10 consumers, according to
the federal reserve boards monthly
review, made public tonight
Revival of the wave OF price re-
duction and its spread to many re-
tail lines was attributed TO a "nlorc
exacting demand BY the buving
public as to price and quality" Re-
tail purchasers are showing contin-
ned determination to wait for dealers
10 meet these demands, while icre-
gong luxurics and semi-luxuries re-
ports to the board declared.
i. Although, the board believed :he
lying public was largely dominat-
,ng the market now. it said that Ia
Dor and production were having
marked effect on price. There was
much evidence, it said, of increased
efficiency on the part of labor 2nd
as a result production was on the
increase and factory operation ne
ginning to approach normal.
Conditions Nearing Normal.
Summed up, the boards finding
were that business conditions new
gre definitely on the road toward
Dtability of as great and conf :me-
"a nature as the disturbed pos; ion
ct the world at large permits
Continuance of the process OF
scadjustmcnt i'll business and indus
try has been al outstanding featu-e
Of the last north" the review said.
"This has been accompanied by
price reductions and by the resump-
ton of work in branches of industry
where hesitation as to future out
Apck has led to suspension.
p"After an apparent slowing down
IN the price reduction movement
during midsummer, it has again re-
appeared ard the month of Septem-
Der saw substantial cuts i'll well
known makes Of automobiles, vari-
ous' classes of textiles, shoes and
feathers, and other wholesale prices
Reductions have occurred in variety
of staples. including wheat. Changes
in prices lave tended to make busi-
ness men and bankers cautious
about future commitments"
Textile Lines Drop.
Drops in prices have featured al
most all Of the textile lines, agents
of the various reserve banks re-
ported, and they added that due to
reductions already announced by
Wholesalers and jobbers. the retail
ers are buying carefully and not in
large quantities, The retailers att
titude was depicted as necessarily
conservative for the reason a market
with a downward trend leaves him
the alternative of taking loss or
keeping his shelves stocked with
high priced goods.
Similar influences were shown to
be bearing on the shoe and leather
industry. In these lines particularly
~, the reports Of the board disclosed;
the influence of demand lessened
by high prices is strong and gives
no indication of weakening. Be-
cause Of this apparent sentiment. the
A yeyiew stated, retailers are postpon-
J ng buying or are buying only for
current requirements.
While housing conditions were
represented as being acute in all
communities, the boards figures
held out hope for an early renewal
of construction. Material prices
show the effect of price cutting in
other commodities and certainly
have passed the peak" the review
said.
Chicago and environs have been
most favored with respect to price
deductions in building materials and
construction, where, according to-
the boards reports, prices fell be-
tween IS and 25 per cent during the
last 80 days. The feeling was said
to prevail that price revision in this,
like other lines of trade, was due to
spread.