The Sun. [volume] (Price, Utah) 1915-1932, 1920-10-15
REIMBURSEMENT UNDER WAY
Such Is Conclusion Reached By Fed
eral Reserve Board.

WASHINGTON, d. c., Oct. p
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
federal reserve board 5 monthly bust.
ness review made public yesterday.
Revival Of the wave of price rcduc.
ton and its spread TO many retail
lines was attributed TO "a more ex-
acting demand by the buying public
MS TO price and quality" Retail pur-
chasers are showing continued deter
mination to await a move by dealers
to meet those demands, while forego-
ing Injuries and scmi-luxuries, are re.
ports 10 the board. Although the
board believed the buying public was
largely dominating the market now,
it said that labor and production were
having a marked effect on prices.
There was much evidence, It said. Of
increased efficiency on the part Of
labor. and rs a result production was
on the increse and factory operation
beginning TO approach normal Sum-
med up, the boards findings were
that business conditions now are
definitely on the road toward stabil-
ity Of ~ great and confirmed n ma
ture as the disturbed position of the
world at large permits. Continuance
Of the process of readiustmcnt in
business and industry has been an
outstanding feature during the last
month";" the review said "This has
been accompanied by price reductions
and by the resumption Of work in
branches Of industry where hesitation
as TO future outlook has led to suspcn-
sion.
after an apparent slowing down
in the price reduction movement dur
ing midsummer, il has again reap
poarcd and the month Of September
saw substantial cuts on well known
makes Of automobiles, various oiassts
of textiles, shoes and feathers and
other wholesale prices. Reductions
have occurred In variety Of staples In
cluding wheat. Changes In prices
have tended to make business men and
bankers cautious about future com
mittmcnts. " Drops in prices have
featured almost all Of the textile lines,
agents Of the various reserve banks
reported, and they added that, due Ia
reductions already announced by
wholesalers and iobbers, the retailers
are buying carefully and not in large
Quantities. The retailers attitude
was depicted as necessarily oonsorya-
tive, for the reason a market with a
downward trend leaves him the alter
native of taking loss or keeping his
shelves stocked with high priced
goods. Similar influences were shown
10 be bearing on the shoe and leather
industry
In these lines particularly, the re-
ports of the board disclosed, the in
fluence of a demand lessened by high
prices is strong and gives no indiea-
ton Of weakening. Because of this
apparent sentiment, the review stated,
retailers are postponing buying or
are buying only for current require
ments, While housing conditions were
represented as being acute IN all com
munitics, the boards figures held out
hope for an early renewal of consiruc-
ton. Material prices show the effect
of price cutting in other commodities,
and certainly have now passed The
peak" the review said. Chicago and
enFirons have been most favored with
respect TO price reductions in building
materials and construction, whore, ac-
cording 10 the boards reports, prices
fell between 10 and % per cent dur
ing the last thirty days,
The feeling was said 10 prevail that
price revision in this, like other lines
Iof trade, was due 10 spread.