Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-03
LOWER PRICES SEEN.
AS BUSINESS AID.
Revival in Demand for Goods
Expected This Fall as
Trade Improves.
special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, August 2.-Improve-
ment of the business outlook has been
particularly noteworthy in connection
with retail trade, says Henry Clews &
Co. AS is well known, the total volume
of such trade has held up quite well
and stocks Of commodities have been
considerably drawn down, so that much
larger orders placed with manufac-
turers will be necessary. At the same
time. it Is believed that the lower prices
for new goods which will be offered to
consumers, and the fact that many
concerns are now so closely sold out
them fresh stocks In almost all depart
merts, will bring a decided revival of
demand
Reporting authorities find that whole
sale dealers were 81 per cent lower
in volume of sales during June than
they were year earlier. It is to be
remembered, however, that these sales
we're expressed in dollars and that a
large part of this decrease is Offset
by the fact that this years sales took
place at far lower prices. In retail
business, where the price level has held
up much better, and where sales have
continued on about the same basis as
last year, comparisons in dollar figures
are favorable. There seems to be little
reason to doubt both good wholesale
and retail trade during the coming
autumn.
Price Cuts in Luxuries.
Expensive items of individual pur-
chase, such as automobiles and the like,
are undergoing pronounced reductions,
some important cuts of the kind having
been announced during the past week,
while renewed selling effort is to be
directed toward the consumer. The
result should be favorable Autumn
season in these branches.
Demand for basic products, particu-
larry iron and steel has continued
strong, although naturally and neces-
the reduction of building, due to ex-
cess supply in many parts of the 'coun-
try, and to moderate recession in sew
eral other branches of demand, the
steel and iron trade has given good
account of itself since the first of the
year. and continuing on up to the pres
ent moment.
Financial Conditions Improved.
The month of July has shown con-
siderable improvement of financial con-
ditions. Bonds, which had tended to
become congested in the hands of deal
ers who had offered them on the mar
ket without being able to sell them,
have been reduced in amount and are
now believed by the best observers to
be hardly In excess of average or
normal quantities so carried. The total
financing for the month will run to
about $700, 100000 of which from $780,
100000 to $150,000,000 are refunding.
The interests which have been en-
deavoring to put prices up to higher
levels are evidently still behind the mar
ket, believing that present values are
distinctly low. Greater activity and
a more hopeful outlook are urgently
desired by both business leaders and
the political authorities; and it may
reasonably be expected that the mar
ket will continue to exert its influence.
The future of the market, of course,
depends upon the condition of business,
and given issues are likely to fiuctuate
under the influence of favorable or un-
favorable earnings, as some stocks, es-
pecially among the rails, did during the
past week, quite noticeably.