Norwich bulletin., 1920-02-14
CIRCULATION WEEK ENDING FEB. 7th, fs2o
 10, ,5O9
HIGH COST OF LIVING.

Regardless of such steps as have been taken and the encouragement that has been held out by the admin istration forces that the cost of liv- ing would come down there is as yet but scant evidence of it in the house hold expenses. There are few things tina: showed a lower price. but in Hiany other lines the information is that prices on new goods will be higher.
 Nevertheless, even though prices continue high. the ultimate consumer, the fellow upon whom the burden falls in all cases, doesn't believe that this is the time for boosting the pay Of the already well paid railroad men and thereby place an additional living cost on him
 But while living costs have not shown a general decrease it is inter estfng to note that the Boston News Bureau believes that high January prices will probably prove the peak It thinks we are facing the advent of a substantial decline in commodity prices because the federal reserve board is getting the commodities to market out of the warehouses, lofts and barns and out from under bank loans and rediscounts, and contract ing the artificial foundation of in fiated credit which is responsible for the new superstructure of production, speculation and hoarding.
 It sees further indication of it from the low reserve ratios and at the dropping of the systems gold reserve and finds the whole industrial situa- tion gradually reshaping. while Pro duction. even with deficient unit out put, is gradually expanding as new pescetime plants find themselves as the released soldiers work hack into industry and as some of tke people begin to respond to production propa- ganda- At the same time an insen- sate demand shows signs of ceasing 10 expand"
 The News Bureau finds encoura ge- nent from the fact that For the first time. in some lines, manufacturers are beginning to push goods upon re- taliers rather than to beg off on fiIl- Ing orders. Credit men report that shelves are not so nearly bare as hitherto believed. Mary retail lines report disappearing business since New Years, beyond what seasonal cullness and the bad weather would account for. Tine public is at last be- ginning to buy carefully or to ab- stain. Its first flush Of extravaganza Is evidently over.
 For one thing, the 4,00o, 900 de- mobilized men no longer have bonuses to spend and clothes, etc, to buy. The bulk of the foolishly spent Lib erty bonds have probably come to market; only distress will call out the rest at prices prevailing De mand" will not henceforth run re- gardless of price or quality.
 Merchants have been long used to seeing goods appreciate on theil hands. They may now have to gel Acquainted with the opposite trend as applied to their inventories. Ware. houses will begin to disgorge silks and other luxrries. or necessities Eggs dropped sharply a few days ago. Cereals and provisions are sub stantisaIly lower than last month. anC Brsdstreet's food index at S504 is of % cents since the first week c>~th, year.
 The process will be cumulative The stock market is pointing tn, way, The b1cswash of export dis appointment will accelerate it. Hcw ever. the real needs of the countr- Eaould prove large enough to mak the process gradual and orderly"
 Signs of these kinds, like straws il the wind. have their significance There is no question but what it i time for a downward movement wit the country expectantly waiting.