New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-10-08
ON ROAD TO STABILITY
CONSUMERS GETTING RELIE r
FROM HIGH PRICES.
PUBLIC CURTAlllNG IN THE PUR
CHASE OF GENERAL CON-
MODITIES.
Western Newspaper Union News Service.

Washington, oct. 1.-Price cutting
has taken hold of the wholesale
trade to an extent that soon must
be felt substantially in lower prices
to consumers, according To the fed
eral reserve boards monthly business
review made public.
Revival of the wave of price re-
ductlon and its spread to many retail
lines was attributed to "a more cX-
acting demand by the buying public
as TO price and quality" Retail pur-
chasers are showing continued deter
mination to await IA move by dealers
to meet those demands while fore
going Injuries and semi-luXuries, re-
ports to the board declared.
Although the board believed the buy
ing public was largely dominating the
market now, 1t said that labor and
production were having IA marked
effect on prices. There was much
evidence, 1t said, of increased eff
ficiency on the part of labor and as
n result production was on the in
crease and factory operation begin
ming to approach normal.
Summed up the boards findings
were that business conditions now
are definitely on the road toward sta
bility of as great and confirmed Il ma
ture as the disturbed position of the
world ut 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 accomplished by price
reductions and by the resumption of
work in branches of industry whore
hesitation rs to future outlook has
led to suspension.
after an apparent slowing down
In the price reduction movement dur
ing midsummer, IL has again reap
peared, and the month of September
saw substantial cuts in ~wcll-known
makes of automobiles, various classes
Of textiles, shoes and feathers and
other wholesale prices. Reductions
have occurred In n variety of staples,
including wheat. Changes in prices
have tended TO make business men
and bankers cautious about future
commitments"
Drops in prices have featured al
most all Of the textile lines, agents
of the various reserve banks reported,
and they added that, due to reductions
already announced by wholesalers and
iobbers, the retailers are buying care
fully and not in large quantities. The
retailers attitude was depicted as
necessarily conservative, for the rea-
son that n market with n downward
trend leaves him the alternative OF
taking n loss or keeping his shelves
stocked with high-priced goods. SINH
lar influences were shown to be bear
ing on the shoe and leather industry.
In these lines particularly, the reports
Of the board disclosed, the Influence
of n demand lessened by high prices
is strong and gives no indication of
weakening. Because of this apparent
sentiment, the review stated, retailers
are postponing buying or are buying
only for requirements.
While housing conditions were rep
resented as being acute in all commu-
mites, the boards figures held out
hope for an early renewal of construc-
ton. Material prices show the effect
Of price cutting in other commodities
and certainly have passed the peak"
the review said.