The Birmingham age-herald., 1920-08-27
LIVING COST HAS AT LAST STARTED DOWNWARD, REPORT
Decrease Is Noted On All Commodities Except Food, Says Summary of the
 Federal Reserve Board
By A,socrsted Press

Washington, August 26.--Marked in have started on their long awaited fall was said by the federal reserve board today to be contained il, it's latest re- ports. An important downward ten dency" in prices of all comm odities. sx ceptins food, is evidenced In all parts of the country. the board stated, adding that sharp reduction in the price of raw products even forecast lower food prices.
 The board in commenting on the price changes said there had been a pro nounced checking" of speculation, as we'll as a definite, although slight in- crease in general efficiency and an equally positive yet limited curtal- ment of extravagant expenditure and unnecessary borrowing. There has been also Sustained tendency" toward the paying off of loans secured by gov ernment and other bonds and securities. The boards report reveals that within the last two months price changes have been marked in all basic raw products but have been most noticeable in wool, silk and leather. These reductions are said to have been accompanied general ly by a corresponding drop in prices in the retail field on clothing and shoes and several other staples.
 MANY FACTORS INVOLVED
 "The downward tendency of prices" " the board said lis not to be explained by reference to any one cause or set of causes but is the outcome of complex of factors. In wool the termination of government control in various parts of the world and the steady marketing of the raw supply held by the United States government has had an impor tant effect"
 A depressed situation" was said to exist in the leather and shoe industry. Shoe manufacturers are slow in. placin 5 orders with leather dealers, with the result that prices on raw material have suffered a heavy decline. The dull sea son of last summer was described as "beginning earlier and lasting longer.
 The manufacturers. however, antici- rate a heavy fall business, but this is ntAMexpected by business experts to increaSA the level of prices in these lines
 Large stocks of leather and hides which had accumulated" the board as serted coupled with a falling off in consumption demand for leather products resulting directly from the very high re- tail prices which were being charged, are currently regarded as primarily re- sponsble for the drop in leather prices.
 The break in the silk market and the subsequent falling off of retail prices of that textile was attributed to specu- lative activity in Japan, where heavy losses have been sustained by dealers as a result of the refusal of Americans to buy at exorbitant prices. Financial diff faculties which developed in Japan last Hari-g also are showing effects and are tt, fnrr
 IOWER COTTON FORECAST
 over prices on cotton and cotton vraducts were forecast because of an fre pected heavy crop, combined with a fas ing up of demand. Tine mills were said to be approaching completion of or der already in their hands Few new craers are being placed. partly because q ne lateness of the season and because sahaers and retailers confidently hope 4ar a prevailing lower level of prices vlngn sales on cotton goods reopen next Sprlng In addition, the board foresees q generally higher efficiency by labor ia industrial production and an improved transportation service This combination is believed to mean that depleted stocks wo lld be restored to normal in the near future.
 It remains true" the board said, lat there is at the present time wide &s between the new level of raw ma raT..al values and the prevailing level oi tail prices.
 /'Durng the month of August 1t has been pointed out by industrial leaders that the high price of goods has been due only in part to high costs of ma terials. and has in very large degree been the outcome of high capital charges and very great advances in the wages of labor.
 For these reasons consumers have been discouraged from taking the view that shrinkage in retail values was lm- mediately to be expected as result or reductions in the wholesale field.
 Ut Is true, however, that the saving afforded by manufacturers through lessened cost of materials and increased efficiency of labor must eventually be reflected in downward movement Of retail prices.
 For the coming autumn and winter seasons it is likely. however, that th's downward moyement will be evident in comparatively small degree. In many lines higher retail prices are predicted due to the fact that purchases for the autumn and winter trade had already been contracted for-at the old level of prices, the changes in the prices of ma terials at the present time showing the