Capital journal. (Salem, Or.) 1919-1980, 1921-02-01
People Haze Casn But
Are Holding Back For
Further Price NLumbS
BY w. H. Adkins,

international News Service Staff
Correspondent.
Washington, Feb. 1.-"Consum
ers' strikes" against profiteers will
not be broken downward, accord
Ing to Governor Harding and his
associates in the Federal Reserve
Board. They also found, in a
review of the bank reports, the
spending power of the public is
strong, but is not being exerted.
! The public is waiting for prices
to show real reductions" to more
nearly correspond to big cuts made
| some time ago by wholesalers in
many lines.
Retailers, officials find, are not
deluding the public by pronou nee
ments that they are losing money
in present price reduction sales,
which are highly specialized and
have not been extended cry wide
/ ly. The Reserve Iioasds horeful
view is that ,he )lhlic has biz
cash reserve, is in need of com
mendties and ready to buy, but
stung so often by cons 3ienceless
eMortion, buycrr are found extreyn
ely cautious.
The caution shown by consum-
ers in restricting their buying 20
actual needs, Governor Harding
thinks, is one of the best signs
OF the times. His advices from
the Governors of the twelve bigi
reserve bank districts over the
country say it reflects general
economy and a growing desire by
the public to save and use it's a.
Vailable funds judiciously. Savings
bank deposits steadily increasing
also denotes that the era of ex-
travagance is passing.
Business More Firm
New bank reports reflect that ,
business men are getting upon
tirmer foundation, and generally
have started the new year under .
favorable conditions. The holiday
trade and isolated reduced price
sales brought enough money from )
spenders to enable merchants to |,
liquidate some of their loans to-
the banks. BY liquidating some of !
the money merchants thus had
lied up in stocks the Reserve
Board is Of the opinion that with
n the next sixty days, or, at most
ninety days, there will be pro-
bounced revival of activity in
business lines. This, 1t is said, will
1ave a tremendous effect in spen-
ling up operations in the big mill
md factory districts now affected
)y suspensions, part time sched-
lies and much unemployment.
Accurate reflection Of what the
'etail traders are doing is found
n the reports of wholesalers to
heir various bank connections A
glance at few of the figures and
acts brought out by the Federal
Reserve Boards inquiry shows
he extent of the Consumers =
trikes," and the effect which the t
'aiting attitude of the public has /
ad upon business,'
Retailers Holding Back t
Retailers are not proceeding t
nth their plans for restocking rs
n former years. expecting a better !
rice level may be reached. De- ! {
lines in wholesale lines, in con- ia
are very general, the /
oard Is informed. The whole n
llers have few untitled orders. in $
ontrast to the heavily booked bust
ess of other years. Representa- Z
We wholesale dry goods firms a
hich usually at this time of year S
port untitled orders running in Il
} millions OF dollars report their q
1oks clear of orders. The same h
ory is told to bankers by big ii
aalers in many lines, dry goods, al
lots and shoes, hardware, furnit-
re and groceries. The declines el
business vary in percentages all u
Ie way from 5 to 80 per cent, fl
to the class of commo- b
ties, For example, falling off in Ct
y goods sales shows a drop or ST
per cent n many reserve dis in
lets. In some districts there is X
drop OF so per cent in demand
furniture.
Governor Harding states this
stagnant condition in
me lines of business is a healthy
ocess through which business Is
.ssing War prices and war
ethods Of carrying on business u
ID to be changed, he says, and al
G community will benefit from a,
G djustments now so wide A
read. He is highly confident the u,
blic will show it's spending w
wer again within a brief period. ii,
- pt