The New York herald., 1921-01-03
PRICES DIP MOSTLY
IN SAME OLD LINES
Reserve Board Reports Further
Declines, but Not in Many
More Industries.
MORE WAGE REDUCTIONS
Banking Power Well Main
tained in 12 Districts
Fair Retail Trade.

WASHINGTON, Jan. 2.-Further declines
IN prices with increased unemployment
accompanied the country's continued
progress In business readjustment In
December. according to the monthly re-
view of general business and financiai
conditions issued tonight by the Fed
eral Reserve Board.
The months price decline was placed
at ek per cent. by the board. which
added that the decreases in prices were
Confined mainly to commodities that had
shown declines previously rather than an
extension of price cutting to-other indus
tries.
The decline was reported as most
marked In agricultural products. textiles.
hides, leather and iron and steel prod
ucts. while coal. petroleum. gasolene,
paper, brick and cement remained large
ly unaffected. Some reductions were re-
ported In the open market in the latter
group of commodities, the board said.
but contract prices appeared to be at the
same level as in garlief months.
Reduced business activity. the board
stated. cut operations in many lines from
& to 75 per cent. of normal and brought
,ccompanying unemployment. Shrink
-o of demand, the board reported, was
esponsible also for wage cuts running
IS high as rs per cent. in some lines.
Banking power. on the other hand,
vas well maintained the board asserted.
normal credit accommodation being cx-
tended to legitimate business. the re-
serve ratio growing stronger and inter-
reserve borrowing In part liquidated.
With liquidation of loans at the member
hanks beginning the board forecast bet
ar conditions. Reports from the twelve
J eserve districts were as follows:
Boston--Stronger banking conditions:
tquidation in commoditics while drastic,
mas been on the whole orderly.
New York--Easier money rates with
.3'n sharpest price declines Of the pres
sat movement reduced manufacturing
olume and export trade, but an ade-
ouate supply of banking accommoda-
tiens.
Philadelphia change In condl-
ions from the preceding month, manu-
Featuring and wholesale lines being
quiet, with retail trade larger than for
December OF 1919.
Cleveland-Money conditions cncour-
aging prices continued to recede rail-
road efficiency greater: cuftailment or
output and lowering of wages through
out the iron and steel trade
ACKNOWLEDGEMENTS prevalent;
DQildlny operations at n minimum, DUST
ness in wholesale and manufacturing
lines inactive, but with signs of improve
ment
Atlanta-Farrners generally feel the
effect of low cotton prices; the crop is
being largely held.
Chicago--Liquidation of bank loans
progressing favorably. farmers suffering
from low prices; retail trade holding up
veil
ST. I.ous--Apathy in huving. though
erice cuts have gone deeper; unemploy-
nent increased; transportation i'm
groved: banking conditions better.
Minneapolis-Grain receipts fell off
somewhat; flour production improved;
prices generally decreased.
Kansas City--Business slowing down
in almost all lines. but with the belief
general that conditions would be rghted
soon and foundation be laid for de-
cidedlv better business.
Dallas-Large carry over both cf
debts and commodities. into 1921 fore
cast: movement os goods deer 2seG
pretty generally. but retail trade held
1p well.
San Francisco-Retaii trade good.
yholesalng less active, crops moving
";esduy to market. live stock and allied
aterests in favorable position; financial
respects favorable.