New-York tribune., 1920-10-01
Price Cutting
Soon to Help
Out Consumer
Reserve Board Reports a
Revival of Reduction
Wave and Its Spread
10 Many Retail Lines
Business Is StabiIizins
EARLY Renewal of Building.
With Relief Of the Hous-
ing Crisis, Is Forecast

NASHiNGTCN, Sept, 20 Nv Ti As
sociated Press. l.-Prico .t.tt.. mas
taken hold Of the Wholesale trade to
an extent that soon must be felt sub
stantIally in lower prices to consum-
ers, according to the Federal Reserve
Boards monthly business review. made
public tonight.
Revival Of the wave of price reduc-
tion and its spread to many retail
lines was attributed to "a more exact
ing demand by the buying public as to
price and quality" Retail purchasers
are showing continued determination
to await move by dealers to meet
those demands, while foregoing luxu-
ries and semi-luxuries, reports declared.
Although the board believed the buy
ing public was largely dominating the
market now, it said that labor and
production were having marked effect
on prices. There was much evidence
it said, of increased efficiency on the
part of labor and as result produc-
tion was ON the increase and factory
operation beginning to approach nor
NAL.
Business StabiIizing
Summed up, the boards findings
were that "business conditions now are
definitely on the road toward stability
of as great and confirmed a nature as
the disturbed position of the world at
large permits"
Continuance of the process of re
adjustment in business and industry
has been an outstanding feature of 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 had led to sus-
pension.
After an apparent slowing down in
the price reduction movement during
midsummer, it has again reappeared
and the month of September saw sub
stantlal cuts in well known makes of
automobiles, various classes of textiles
shoes and leather and other whole
sale prices. Reductions have occurred
In variety of staples, including
wheat. Changes in prices have tended
to make business men and bankers
cautious about future commitments. ."
Drops in prices have featured almost
all OF lhe textile INES, agents OF the
various Reserve banks reported and
they added that, due to reductions al
ready announced by wholesalers and
jobbers, the retailers are buying care
fully and not in large quantities. The
retailers attitude was depicted as
necessarily conservative, for the rea-
son that a market with a downward
trend leaves him the alternatives of
taking loss, or keeping his shelves
locked with high priced goods.
Similar influences were shown to be
bearing on the shoe and leather in
dustry. In these lines, particularly,
the reports of the board disclosed the
influence of a demand lessened by high
prices is strong and gives no indication
OF weakening. Because of this appar-
ent sentiment, the review stated, re-
tallers are postponing buying, or are
buying only for current requirements
While housing conditions were rep
resented as being acute in all com
munltles. the boards figures held out
nope for an early renewal of construc-
ton. Material prices show the effect
Of price cutting in other commodities
and "certainly have passed the peak"
the review said.
Chicago and environs have been most
favored with respect to price reduc-
'ions IN building materials and con-
SVFuction. According to the boards
reports prices there fell between Is
ana 20 per cent during the last thirty
gays The feeling was said to prevail
,haV price revision in this, like other
lihes OF trade, was due to spread.