Every evening, Wilmington daily commercial., 1920-10-01
CONSUMER FORCING
PRICE REDUCTIONS
Public is Refusing to Buy at Ex-
tortionate Figures. Says
Reserve Board.

Washington, Oct. 1.-The consumer il
bo@s of prices and the high cost of livinp
ut last. according 10 the monthly review OF
business, made public yesterday by the
Federal Reserve Board.
Dealers now are confronted by a dis
crimmating public. who watches one
pricc reduction after another with com
placcnt mcn. keeps its money in its purse
and waits for further decline.
In practically every industry and in
every part Of the country, the Reserve
Board reports. the consumers are fore
ing n definite revision downward of pric-
es,h and IN the rcadiustment some business
es are suffering.
summed up. the Boards findings were
that business conditions now are def
ni,elv ON the road toward stability of as
great and confirmed a nature as the dis
turbcd position of the world at large
permits.
The attitude of the purchas ing public
continues To be characterized as con-
scrvatlve. bcing far more exactmg In
its demands as 20 quality and prices than
WAS the case some months ago, the re-
view said. This attitude on the part
Of the public and a general feeling of
uncertainty as TO prices Is said to be
causing merchants 10 continue the atti-
tude Of caution in replenishing their
stocks. purchases IN mcst cases beng
chiefly for strictly current needs.
The Board also notes that the "de-
mahd for Injuries and semi-luxuries con-
t,nues far less active than, at the same
time last year, while the volume of
sales continues moderately large
IL is the rather extended review of
the conditions in specific industries as
n - tIo uaarl that faH,.nspS net
how powerful the consumer has become
and how rclcntlessly he has begun to as
SORT that power Summarized these re-
ports show
Clothing wools-Price reductions are
reported BY scme mills and il is said
buying has been resumed but the buying
appears 10 be only for immediate consump-
ton. Although there appears TO be an as
nired demand for goods, the public
refuses 20 he budgcd from its demand for
greatly reduced prices. The reductions OF
from - 10 - per cent have not caused
rush of buyers.
Co.ton-Prices remain high, but there
10 no demand, consumers refusing 10 buy,
and orders are being Cancelled and cur
ta,lmcnt in production is threatened.
Shoes Movement toward lower prices
has hecn gradual. but while the manu-
facturers "sec no prospect of an early
decrease in prices" the consumers are
refusing to buy.
FOOD OUTLOOK BRIGHT.
Food Improvement in crops of pre-
vinus months not sustained, but an
annie surplus assured. with the corn crop
= record-brcaker. Great improvement in
livestock condition shown.
Building mstcrials-Net decline IN
costs of from Is 20 25 per cent during the
month and building at prevailing prices
has reached and passed its peak
Iron and steel-New business has
fallen of, consumers are showing caution;
there is small future buying; the auto
mobile demand has declined and rail-
road demand picked up some.
-Bituminous prices have declined,
snthracite production is back TO normal.
~hile bituminous production maintains
"a high daily average" Car distribution
has improved.
oil-pruduction increased during the
month, as did also consumption. The
tendency for lower values was further
demonstrated Yesterday when wheat
iumbled ! cents IN Chicago. bringing that
essential down 10 the lowest price in
four wears. Reductions already hsve been
announced IN -four, but more drastic
cuts are expected
Sugar was sold in New York at IS cents |
. pound. representing lCAcent reduction |
from the extreme price IN that market. !