The Birmingham age-herald., 1920-10-01
PRICE CUTTING HAS TAKEN HOLDOF HE
 WHOLESALE TRADE
Retail Purchasers Determined to Await Move By Dealers to Meet Demands, Says Fed
 eral Reserve Board
By Associated Press

Washington, September 30.-Price cut ting has taken hold of the wholesale trade to an extent that soon must be felt substantially in lower prices to the consumer, according to the federal re- serve boards monthly review made puo- lice here tonight.
 Revival of the days of price reduction and It's spread to many retaH hnes was attributed 10 "a more exactlng demand by the buying public as to price and quality Retail purchasers are showing continued determination to await a mqSe by dealers to meet these demands while foregoing luxuries and serni-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 pro- duction were having marked effect on prices. There was much evidences it said, of increased efficiency upon the part of labor and as a result, produc- ton was on the increase and factories beginning to approach normal
 Summed up. the boards findings were that business conditions now are defi- nitely the road toward stability of as great and .confrmed a nature as tho disturbed position of the world at large permits
 Continuance of the process of read-
 
 standing feature of the last month. This has been accomplished by price reduc- tions and by the resumption of work in branches of industry where hesitation as to future outlook has led to suspensior
 SUBSTANTIAL CUTS
 After an apparent slowing down in the price reduction movement during nid- summer it has again reappeared, and the month of September saw substantial cuts in well-known makes of autonu- piles, various classes of textiles. shoes and leather and other wholesale prices. Reductions have occurred in q 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 almost all of the textile lines. agents of the vd- rious reserve banks reported, and they added that due to reductions already announced the retailers are buying care fully and not in large quantities. The retailers attitude was depicted as nec- essarily conservative for the reason a market with a downward trend leaves him the alternative of taking loss or keeping his shelves stocked with hisu- priced goods
 1 Si1aiiar mtluences were showf to ts bearing on inc Shoe 4l.d heather ihdls7 iit ctleHs LII eS, liil tittiJ " ports of She board disclosed. the irtte ence of a demand lessened by hisn prices is strong and gives no indication of weakening. Because of this apparent sentiment. the review stated, retailers are postponing or are buying oniy Tor current requirements.
 While housing conditions were repre- sented as being acute in all coinmnnit'ss' the boards figures held out hope Tor an early renewal of constructions. Ma terial prices show the effect of price cu' ting in other commodities, and certainly have passed the peak the review sald.
 Chicago and environs have been most favored with respect to price reduction in building materials and constructiun.t where, according to the board reports. prices fell between 15 and 70 per ee'. lnrng inc last thirty days The feeling was said to prevail that price revision in this, like other lines of trade, was due to spread.