Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-07-30
PRICE DROP SHOWN
| IN BANKS REPORT
Downward Wholesale Trend
I Soon to Affect Consumer,
Federal Reserve Says
FIGURES GIVEN FOR May

A report of the Federal Reserve Bank
FOR May. the latest table the bank has
compiled. shows the beginning Of the
prize decline in various staples.
These prices are wholesale. and off
cials of the bank say that they really
do not adequately represent the full OK.
tent Of the price drop. since It was just
beginning In May and has since shown
more pronounced downward trend.
The figures for juno and the present
month are not available yet.
The prices quoted are the more sig
nificant, IL is pointed out, when 1t is
considered that the margins will proba
bly, be greater when the retail prices
become affected by the new rates within
Z short time.
One decisive factor in the sharp price
drop. says the July bulletin Of the bank.
has been the extensive cancellation OF
orders, particularly in goods that go
into the manufacture of clothing ana
IN the finished product itself Many
textile mills have been forced to shut
down owing to heavy cancellations of
orders, the bulletin reports.
f Shoes to BE Cheaper
Further to quote the report The
hide and leather markets have similarly
felt the effects of the cancellations re-
ceived by the boot and shoe manufac,
turers. This has forced the price of
these articles down and indications Of a
continued lessened demand seem to
Show further reductions in sight. even
though the cost OF production Is likely
TO rise slightly higher"
In addition to the conservative atti-
tude of the consumer, transportation is
keld as an important factor in produc
itg this result. the bulletin says.
1.-THE cancellation situation the
bulletin points out. might be inter
preted as presaging industrial depres-
sion were 1t not for certain special cir
c,,mstances that 90 far toward explain
ing the prevalence of these cancella-
tions. A., .--..
tion tie -up remains. as it has been for
several months. the dominant factor TO
he reckoned with. and the chief cause
inhibiting productive activity. Inability
to deliver goods or DELAYED deliveries
are sufficient explanation for many can
cellations. .,-,,
"Fuel shortage likewise. attributable
Ia TRANSFORMATION difficulties has also
led TO a reduction in output in certain
industries, thereby diminishing the de-
mand for raw materials and semi
finished products. These factors also in
evitably react upon the buying power
Of those ultimate consumers whose
wages are reduced by a slowing up or
cessation Of industrial activity
No Cars for Grain Stores
According to a statement of Fed
eral Reserve official just back from a
tour Of the country, several striking in
stances of the effect of poor transporta-
tion were noted. In the Minneapolis dis
trict, he said, $3.50 900 900 of stock
and grain is lying in freight sheds
awaiting shipment with no cars avail
able to II.
In Chicago, he said. are 100, 900 900
bushels of grain from last years Iowa
crop, still awaiting shipment. because
Of inadequate transportation facilities.
Ninety five per cent of the cars sent
to remove the grain, he asserted, were
in such a bad state of repair they were
not usable. The same. he said, held
good of lumber in the northwest. In
spite Of this and the reported shortage
OF farm labor. he said. bumper crops
were the rule. farmers working overtime
to harvest their crops and being as
sisted in their work by women.
In the May figures prepared the
downward trend from peak prices is
4 shown most decidedly. While in COM
parison with prev prices and later
prices before the high price craze made
itself fully felt, the present prices are
high, officials point out that the de-
cline which. will be still more marked
in later figures, is permanent one, and
is one that will continue.
In comparison with peak prices corn
had fallen in May per cent; cattle,
80 per cent; beef in carcass form. 90
per cent hogs. "a per cent and smoked
hams, per cent.
Big Drop in Coffee
Coffee has taken drop of 80 per
cent, hides have dropped a similar dis
tance. leather is 4 per cent below high.
cotton yarns have fallen slightly. wool
has declined 20 per cent and worsted
yarns are II per cent below peak prices.
Prices of other staples such as cotton.
wheat and even sugar. which were high
at that time. either have since fallen
or will fall in the near future. it is
predicted. Bumper crops and a looked
for betterment of transportation condi
tons are the hopes on which prediction
is based.