Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-23
DECREASE IN FOOD
PRICES HAS BEGUN
Per Cent Under Those
Retail Figures Reduced IL
of Year Ago.
BY J. C. ROYLE.

Food prices have started to drop and
are now approximately II per cent
under those of a year ago. This is
not 70 be attributed to any congress
sional action, although Congress this
week has been investigating as to why
some food products have not come
down In price along with raw ma
terialS. The old laws of supply and
demand are responsible.
Farm products have dropped 2 per
cent because of excess supplies. The
same Is true OF meats and fish. There
Is more fish in cold storage now by
70 per cent than for the last five years.
The total Is 85.317.475 pounds, but i'm
proved refrigeration accounts for part
OF this increase and also demand for
fish Is growing. The condition of the
farmers can amply be judged by the
tact that production--with the excep-
ton OF corn and some other products
fell less than 5 per cent under that
Of 1929, even with the severe drought
TO cut crop yields. This result came
about despite every effort of Federal
ofhcialS and bankers and merchants
throughout the country to induce
farmers to curtail paintings. These
efforts were conSpicuously unSuccess-
tul with cotton growers. and in conse-
quence the cotton planters are perhaps
turistS.
Cement Industry.
The laws of supply and demand lead
feel that 1881 will exceed 1880 in pros
perity. The main thing which will help
the industry is that roads are to be
built which will be equivalent to 10,250
miles of 18-foot-wide highway. This
will give aid also to the crushed stone,
machinery and steel industries. The
lumber industry is putting itself in the
best possible shape for the coming year,
since orders at principal mills are run
ming nearly rs per cent higher than
production. Stocks are still fairly high,
however. Steel, glass and brick are in
fair positions.
Steel, in fact, is on the swing upward,
supported by railroad buying and de-
mand from machinery manufacturers.
The automobile industry is gradually
expanding its pay rolls and the cut In
prices by a manufacturer who makes
nearly as many cars as all others com.
bined is calculated TO have a stimuli
lating effect on sales, although 1t may
perhaps disrupt programs OF other
makers for the time being.
In the last year copper producers
have curtailed output over 80 per cent,
but even this has not been enough to
revise price strength. This also Is true
Of zinc and, to a lesser degree, of lead.
No marked change is observable in the
situation of the anthracite and bitumi-
nous coal producers. The petroleum in
dustry continued divided against itself
as to whether or not height should be
added to the tariff wall against foreign
oils and whether domestic curtailment
should be increased or diminished. AS
result of the situation, prices have
been cut in some sections.
Sales Campaigns.
Both wholesalers and retailers are
starting aggressive sales campaigns, sup
ported by domestic and national news
paper advertising. One big manufac-
turer Of enamels and lacquers has noti-
fed its sales force that per cent
bonus will be paid on all sales made
above those made in 1880. Both rayon
and silk markets are showing some
strength. The fact that some rayon
manufacturers have guaranteed Gus
toners for 80 days against further price
declines has improved sentiment.
(Copyright, 1881