Evening star., 1947-01-26
by ,he As.oc;oted Press

NEW YORK, Jan. 25.-Ihe thut
of many falling prices was heart
across the land this week and prom
ises of more to come today soundet
like good news for consumers II
1s47.
| Decreases in wholesale lines TO
the most part have outstripped re
tail drops. Once these are Translates
into retail figures, the value of tn
housewives dollars automatically vii
rise.
The Associated Press index of 81
wholesale commodities showed tn
greatest aggregate drop in the las
1.-TWO weeks of any like period sine
before 1885, with one exception. Thi
came in single two-week span las
summer when prices were f1uctuat.
ing widely during OPA's off-again.
|on-again act.
Further Drop of 259s Predicted.
Behind these figures stood The
promises. One prominent econo.
mist predicted this week further
drop of Is per cent in food price.
during the next IL months. An.
other foresaw "50-cent butter" The
National Retail Dry Goods Asso-
citation held out hope of at leas1
partial progress" toward what il
called consumer demands for $2.5(
broadcloth shirts, So house dresses
and $1.98 sheets. The president OF
one of the biggest Fifth Avenue de-
partment stores called on the textile
trade to reduce its profits until we
find the point where the public will
play ball with us"
Significantly, a. drop in National
retail sales for the first time since
early october was reported for the
week ended last Wednesday by one
business research group.
Even more convincing evidence of
coming price decreases in some food
lines came from the futures mar
kets, where traders grow fat or thin
by contracting now for commodi-
ties for delivery at a future date.
Cattle Prices Lowest Since OPA.
At the close of today's markets in
Chicago, you could buy butter for
June delivery for SITS cents a
pound. Wheat for September de-
livery was a shade above $1.74 a
bushel as against today's $2.19 cash
spot price and September oats were
quoted at less than SO cents a
bushel compared with today's 81
cents.
During the present week, declines
were recorded in the cotton, grain,
livestock and butter markets. Cat
tie prices were the lowest since OPA
ceiling were removed October Is.
In New York, wholesale butter
dropped another cents pound on
top of last weeks decrease of nearly
10 cents. Retail butter prices gen.
orally followed suit. Top grade but
ter could be purchased here for 63
cents pound today. This was ap-
proximately the old OPA ceiling and
represented a drop of rs cents
since December 26.
General Price Structure Still High.
None of these drops, or others,
could be taken as any indication
that the high general price struc-
ture was suddenly crumbling and
might fall down. Prices on some
items obviously were due to rise
even higher, including probably
ladies apparel. Prices of steel and
other metal were up and hard goods
made from them frequently re-
flected these increases. Many pro-
ducers and retailers found it neces-
sary to increase prices because o1
the IT'S per cent boost in freight
rates.
Even In the processed food lines
Paul S. Willis, president of the
Grocery Manufacturers of America
declared in formal statement TO-
day, many consumers were getting
a false idea.
Actually" he said, "surpluses exist
mainly on citrus juices, carrots,