Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-22
FOOD PRICES STILL
ON THE TOBOGGAN
Flour Drops rs Cents a Barrel
in New York Whole
sale Market
MEATS ALSO SOLD CHEAPER

New York. May 22.-Food prices
which joined the general downward
trend yesterday. dropped still further
today.
The decline was noted especially in
the grain market, where there were
violent fluctuations in corn. rehectinp
| continued nervousness among brokers
as result of Yesterdays semicollapse of
the market. Oats also moved erratically
and there was n general decline of 81
cents barrel in -four.
Rumors that banks are urging liqui-
dation of cotton loans in the South =
west influenced renewed liquidation in
the cotton market. Refined and raw
sugar prices were unchanged, however.
In Chicago today the market state
ment of Armour & Co. SAYS supplies
Of beef at the big eastern centers are
liberal and Wholesale prices have de-
clined. The statement adds that receipts
Of beef cattle are being marketed at
prices rejecting the Unsatisfactory
beef market in the East
These reductions are credited to the
price slashing wave spreading to all
parts of the country and to all COM
modities. Local food dealers and experts
now admit that a break in prices must
come. They say there will be what
they call a Sentimental drop in the
next ten days, followed by natural
fall" as soon as freight congestion is
relieved.
While admitting chat the chief cause
Of the general drop in the retail cost
of clothing, shoes and other necessities
e ALa nK1 10 h,,,
at present prices, bankers are ready to
keep the prices on the downward trend
by the use of their powers in granting
credit.
A leading New York banker declared
today spectators in food and other
necessities would have the props pulled
from under them and some would be
hurt by the sudden drop. Producers and
merchants, however. will escape serious
loss, he said. There will be gradual
credit defiation, he added, so as to pre-
vent serious consequences from sud
den withdrawal of credit.
Herbert Hoover will testify here
Monday afternoon on general economic
with special reference to the
sugar situation. before the joint legis
Iative committee investigating prOfiteer-
ing, it was announced by Deputy At
torneyJ General Berger.
Washington, May 22.-(By A. P.)-
Another step to aid in driving down
prices of necessities has been taken by
the Federal Reserve Board. Governor
Harding is understood to have intimated
to Federal Reserve bank officials that
they should scrutinize carefully the
paper they hold as security for loans
made to the sugar trade, to the end that
more sugar may be made available for
domestic consumption.
1t was estimated that probably
$3.50. .OOO. 900 was tied up in frozen
loans on sugar stocks and it was re-
garded as probable that the banks
would be able to locate any sugar
stocks held for speculative purposes and
force their distribution.
Reserve Board officials would not
discuss Governor Harding's action fur
thPr than to say that such move was
entirely in line with the policy to which I
the support of the bankers was
at the conference here last
Tuesday, at which ways and means of
preventing speculative boarding were
discussed.