The Birmingham age-herald., 1920-12-05
CONSUMER STRIKE
 CAUSING BUSINESS l. SLUMP SAYS BOARD
Federal Reserve Board Sees No Hope of Early Relief From Present General Business
 Depression
By Associated Press

" NdSulHS LOii, lCCCcIlDCT t--4NO uOPc of early relief from business depres- sion is held out in the monthly state ment of the federal reserve board, made public tonight. Depression exists ir most communities. the statement said, and one of the basic causes, so far as the board could determine, was "consumers strike'--an evident pub- lie determination "to wait for prices to come down."
 Manufacturing activities continued to fall off during November. the board said. A wave of reduction sales" by retailers has not. it added, resulted in increased buying which would cause a Corresponding decline in the buying power" reflected in the decreased vol ume of trade of all kinds also was noted. m
 Tt is impossible" the board con- tinued, "to estimate the extent to which the completion of the readjust- ment process may involve further slackening of employment and the in crease of commercial embarrassment. The favorable clements In the imme- diate situation are the improvement of transportation and easing of credit conditions"
 WANT THEIR PROFITS
 The board said there was tendency by some retail merchants to attempt to realize on stocks at the particular days prices, but that reports from the various reserve districts Indicated that there was also counter sentiment among merchants to make their profit regardless of the current wholesale prices.
 Cold weather in most sections has stimulated the buying of clothing," the board said. Tn general. the usual seasonal demand is still lacking. There is generally reported decided de- termination on the part of the buy ing public to wait until prices come down and this is characterized by some as a consumers strike.
 Stores generally are reducing stocks and making no attempt to replenish
 ing and retailers are ordering only what is needed to meet day-to-day re- Quirements."
 While prices are slowly declining. it is still feht that present declines have not paralleled declines ini wholesale prices. Shoppers are confining buying to necessities and staples with the re- suit that the volume of trade has fallen off,"
 z ATTEMPT NO FORECAST , The board attemptcd no forecast of fu- ture conditions in individual lines. Lum- Der manufacturers reported dropping or ders despite paring of price lists and like wise disclosed. in some cases, no more than half time operation of mills. The shoe leather industry has been likewise affected, although it's orders were some what larger for immediate delivery to fill current requirements. No indication of revival in the silk industry was seen and while makers of mems clothing have announced reductions to stimulate sales. few orders have been placed, so far the board said.
 Prices for wornen's wear have not de- cidned along with reductions of 8 to 50 per cent in mems clothing, the board said. as thera is surplus stock.
 Cancellation of orders prevalent in the domestic trade has a counterpart in the export trade, the board said. They have been particularly heavy by South Amer ican importers and in. general have tended to subject export enterprises to uncertainty," the board added. Despite these handtcaps exports had been ''tol- era4bly well maintained as result of the large movement of staples to European parts,'' the statement sad