The Covington leader. (Covington, Tenn.) 18??-current, 1920-10-07
PRODUCTION BETTER
SAYS BANKING BOARD

Washington, September 30-Price-
cutting has taken hold of the whole
sale trade to an extent that soon must
be felt substantially in lower prices to
the consumer, according to the fed
eral reserve boards monthly business
review made public tonight.
Revival Of the days Of price re-
auction and its spread to many retail
lines was attributed to a more ex-
acting demand by the buying public
as to price and quality Retail pur-
chasers are showing continued de-
termination to await move by deal
ers to meet those demands while
ofegoing Injuries and semi-luxurles,
eports to the board declared
Although the board believed the
lying public was largely dominating
he market now, it said that labor
nd production were having marked
fleet on prices. There was much
violence. it said, of increased eff
cheney on the part Of labor, and as a
result production was on the increase
md factory operation beginning to
9Droach normal.
Summed up. the boards findings
were that business conditions now
are definitely on the road toward
ability of as great and confirmed a
nature as the disturbed position Of the
world at large permits"
Continuance of the process Of re-
adjustment in business and industry
As been an outstanding feature of
the last month";" the review said
eThis has been accompanied by prce
reductions and by the resumption Of
work in branches Of industry where
hesitation as to future outlook has led
to suspension.
"After an apparent slowing down
in the price reduction movement dur
ing midsummer, it has again re-
appeared and the month Of Septem-
Der saw substantial cuts in we'll
known makes Of automobiles, various
classes Of textiles, shoes and leather
and other wholesale prices. Reduc-
tions have occurred in variety of
staples, including wheat. Changes in
prices have tended to make business
men and bankers cautious about fu-
ture commitments
Drops in prices have featured al
most all Of textile lines, agents Of
the various reserve banks reported,
and they added that due to reduct-
ions already announced by the whole
salers and jobbers, the retailers are
wing carefully and not in large
quantities. The retailers attitude
was depicted as necessarily conserya-
tive for reason a market with a
downward trend leaves him the al
Tentative Of taking loss or keeping
his shelves stocked with high-priced
goods.
Similar influences were shown to be
bearing on the shoe and leather IN
dustry. In these lines particularly
the reports of the board disclosed. the
influence Of a demand lessened by
high prices is strong and gives no in
dication of weakening. Because Of
this apparent sentiment, the review
stated. retailers are postponing buy
ing or are buying only for current re-
quirements.
While housing conditions were rep
resented as being acute in all com
munities, the boards figures held out
hope for an early renewal of con-
struction. Material prices show the
effect Of price cutting in other com
modities and certainly have passed
the peak the review said
Chicago and enyirons have been
most favored with respect to price re-
duction in building materials and con-
struction, where, according to the
boards reports, prices fell between
rs and % per cent. during the last
80 days The feeling was said t.
prevail that price revision in this
like other lines Of trade, was due tc