Arizona republican., 1920-10-01
RESERvE. BOARD. SAYS CONSUMER
 WILL SGeN LEI PRICE CU I T|Nb
Exacting Demands of Buy ing Public and Speeding Up of Industry Is Causing Lower Prices
IRepubIIcan A. p. Leased wirel

Republican A. p. Leased Wtrel
 WASHINGTON, Sept. 30.-Price cut ting has taken hold of the wholesale trade to an extent that soon must be felt substantially in lower prices to consumers, according to the federal re- serve boards monthly business review made public tonight.
 Revival of the wave of price reduc- tion and it's spread to many retail lines was attributed to "a more exacting de- mand by the buying public as to price and quantity" Retail purchasers are showing continued determination to await a move by dealers to meet those demands while foregoing luxuries- and semi -luxuries, reports to the board de- clsred.
 Although the board believed the buy ing public was largely dominating the market now, it said that labor and pro- duction were having marked effect on prices. There was much evidence. 1t said of increased efficiency on the part of labor and as a result production was on the increase and factory opera ton beginning approach normal.
 Summed up, the boards findings were that business conditions now are defi- nitely on the road toward stability
 Continuance of the process of re- adjustment in business and industry has been an outstanding feature of the 1 last month, the review said. This 1 has beer accomplished by price reduc- l lions and by the resumption of work ir branches of industry where hesitation as to future outlook has led to sus' pension.
 After an apparent slowing down il the prlce reduction movement durini mid summer. it has again reappeare' and the month of September saw sub stantial cuts ia well known makes O automobiles various classes of textiles shoes and feathers and other wholesai prices. Reductions have occurred il variety of staples including wheat Changes in price have tended to mak business men and bankers cantiou a,bont future commitments"
 Textile Lines Affected
 Drops in prices have featured almos
 all of the textile lines agents of tn
 various reserve banks reported an
 they added that, due 10 reductions al
 ready announced by wholesalers an iobbers. the retailers arc buying care fully and not in large quantities. IT retailers attitude was depicted as nes
 essariiy conservative for the reason market with a downward trend leave him the alternative of taking loss
 keeping his shelves stocked Wltn HE ]. priced goods. Similar influences wc
 shown to be bearing on the shoe ar
 leather industry. In these lines pa 1 ticularly, the reports of the board dii ! closed the influence of a demand : high prices is strong and gives no il dication of weakening. Because of tn : apparent sentiment to review state f retailers are postponing buying or a : buying only for cnrrent requirements \ While housing conditions were repr $ sented as being acute in all commun
 ties, the boards figures held out ho
 for an early renewal of constructio
 Material prices show tho effect of pri e cutting in other coramodit.ss and "cc d tainIy have passed the peak" the r $ view said.
 Q Chicago and environs have been mo
 favored with respect to price reductio It in building materials and constructi 'f where according to the boards repor Q prices fell between 15 and 25 per ce r during the last 30 days. The feeli .s was said to prevail that price revisi le in this, like other lines Of trade, " E due to spread.