The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1920-10-07
SLUMP IN PRICES
BEING EXTENDED
CONSUMERS SOON TO GET BEN
EFITs OF DROP.
Public Now Exacting.
Wave Begun by Wholesalers to be
Reflected by the Retailers.-Sub-
stantial Reductions.

Washington.-Pric cutting has
taken hold Of the wholesale trade to
an extent that soon must be felt sub
stantially in lower prices to the con-
sumer, according to the federal re-
serve boards monthly business re-
view, made public last week.
Revival of the wave of price reduc-
ton and it's 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 deter
mination to await move by dealers
to meet those demands while fore
going luxuries and semi-luxuries re-
ports to the board declared.
Although the board believed that
the buying public was largely domi-
mating the market now, it is said that
labor and production were having
marked effect on prices. There was
much evidence, it said, of increased
efficiency on the part Of labor and as
a result production was on the in
crease and factory operation begin
ming to approach normal.
Stability Returning.
Summed up, the boards findings
were that business conditions now
are definitely on the road towards
stability 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
has been an outstanding feature of
the last month";" the review said.
"This has been accompanied by price
reductions and the resumption of
work in branches of industry where
hesitation as to the future outlook
has led to suspicion. .....
'sAfter an apparent slowing down
Of the price reduction movement dur
ing midsummer, it has again appear
ed and the month of September saw
substantial reductions in several OF
the well known makes of automo-
biles, various classes OF textiles.
shoes and leather and other whole
sale prices. Reductions have occurr-
ed in a variety Of staples, including
wheat. The changes in prices have
tended to make business men and
bankers cautious about future COM
mitments.
Drops in prices have featured al
most all Of the textile lines, agents
of the various reserve banks report
ed, and they added that, due to re-
ductions already announced by the
wholesalers and jobbers the retail
ers are buying carefully and not in
large quantities. The retailers at
titude was depicted as necessarily
conservative for the reason that
market with downward trend leaves
him with the alternative Of taking a
loss or keeping his shelves stocked
with high priced goods.
Shoes to be Lower.
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
indication of weakening. Because
of this apparent sentiment, the re-
view stated, retailers are postponlng
buying or are buying only for current
requirements.
While housing conditions were rep
resented as being acute in all COM
munities, the board figures held out
hope for an early renewal of all 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 environs have been
most favored with price reductions
in building materials and construc-
tion, where, according to the boards
report, prices fell between 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.