The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-10-15
PRICES TO DROP
STILL FURTHER
Eminent Financial Editor Says
They Are Coming Within
Arms Reach Now.
~ JOHN W. HILL.

Financial Editor iron Trade Review,
The tide OF wholesome reaction from
the artificial prices and overstimulated
activity is spreading. Its progress is
aided by enormous crops increasing
production, expanding imports and di-
minished demand for goods due to tight
money and expectation OF lower prices,
AS defiation proceeds. commodity prices
will come within arms reach, credit
will be released, money will be cheaper
ana activity will revive. Efforts 20 OPP
pose the prevailing trend win fail,
Foresight Of Reserve Board.
Thanks 20 the foresight OF the fed
oral reserve system, which began TO
rat the brakes on speculation In tho
United States a year ago. there Is moth
ing alarming. in the situation here In
Japan the riot OF speculation In silk
brought a collapse last spring, Now
reports come of a similar financial dis
turbance in Cuba, the outgrowth OF
sugars spectacular rise and consequent
decline.
Middle western railroads testify TO
the slackening in industry They report
falling on in traffic Of from 10 70 20
per cent. As a result upwards " $4,000
maintenance and way and shop en-
ployes have been laid Off temporarily.
Textile situation.
Price reduction and large sales forces
in the field have failed To stimulate big
Some plants are running half time and
others have closed down for short pc
RODS. Textile prices, In many In
stances. are still 100 per cent or more
above pre-war levels, Owing 70 per-
sistent dullnesS. however, quotations
are seeking n level which will attract
buyers.
II Lowell, Mass, $500 employees Of n
largo hosiery mill offered 10 accept a
IS per cent wage reduction to keep the
factory going. Lack OF orders, how
ever forced n shut down.
on the whole wages are not being
reduced materially by employers. but
wage costs are being cut by increased
efficiency
Return TO Pre.War Dollar.
The economic drama now being en-.
acted might be entitled THE Return OF
perts have figured that the dollar Is
now worth IS cents. II stood at 10
cents few months ago. This is gain
OF IS cents. II means the automatic
raising OF wages and larger market
basket when raw material and whole
sale price recesslons are passed on 10
the ultimate consumer.
The dollars come back Is meeting
with stubborn resistance on the part
of producers and sellers. In the IN
1ustrial centors powerful business IN
terests would check the decline II pos
ing inventories. In the agricultural DIS
tricts wheat growers are being urged 10
hold out for 50 wheat. Night riders In
the south are burning the cotton OF
growers who refuse to agree to hold
their crop for ~ cents pound.
Price Fall Logical.
Wheat prices are falling because oil
a world crop ample for all needs, with
probable competition In selling. The
/ tai Of all Gel cal yields this year Is the
targets on record with one exception.
The corn crop is unrivaled. Abundant
crops I'm peace times always mean
lower prices.
Cotton Facts.
Cotton quotations have fallen from
4. cents to nearly 20 cents a pound be-
cause OF tbs largo supply and dimin-
ished consumption here and abroad.
with the hod-over supply and the 1920
crop, a total of lJ,22l,9l2 bales will be
available this year. against consumption
and export of American cotton last year
of 1901 ,S92 bales.
with wool 1t Is the same story. On
Aug, I there were TOO, 600 900 pounds Of
wool In the United States. With one or
two exceptions this Is 'he larger amount
than was ever consumed In this coun-
try. The rest Of the world has tive
years supply of wool In storage, II 1t
estimated.
In sep ember 10000 immigrants
flockol TO American shores, About 81
per cent came from Italy. Many OF
them arc unsklled laborors A large
majority are women.