Evening star., 1948-02-07
Consumers Get
First Benefits
0fPriceSIump
Flour, Breed, Lord
Initial Budget Items
Cut at Retail Level
WASHINGTON DEALERS expect
poultry, egg prices to drop.
Page Az
BY fhe Assoeioted Press

At least three important items
in the family food budget
bread, -four and lard-will cost
less as a direct result of crashing
grain prices for four days
running. Additional reductions
were promised.
The Kroger Co. in Cleveland an
nounced its 20-ounce loaf of bread
would drop Monday from IS to IA
cents. The food chain operates in
18 States.
A spokesman for the chain added
that reductions on other foods, prob
ably including some -four and meat
items, were planned for some areas.
Albers Super Market. Inc, at
Cincinnati announced flour and lard
price cuts, also effective Monday
A company spokesman said the
price of a 25-pound sack of -four
will be reduced 16 cents and 10
pound sack cents, while lard would
60 down cents pound.
Earlier two big Eastern food
chains reduced the price of flour
by 4 cents per 10-pound bag. Others
indicated similar action may be
taken by Monday.
Meanwhile, in the Chicago grain
pit, the market made a stab at ad-
vancing but with only minor sue
cess. The stock market did better,
edging ahead for the first time this
week. Cotton also improved, clos
ing 81 to $210 higher.
Some wheat and corn contracts,
mainly those calling for delivery
within the next three or four
months, again plunged the allowed
10-cent limit, as they have done for
the last three days. Later contracts
managed to tack on small gains at
times. Oats showed independent
strength.
Wide News of Reduction.
News of reductions in -four and
lard came from all over the country.
The cut in lard generally amounted
to cents a pound and in -four 4
cents per l0-pound bag.
One of the cheeriest predictions
for the housewife was made by A.
W. zelomek of New York, president
of the International Statistical
Bureau, private research organi-
Zation.
Mr.. Zelomek, speaking at Gin
cinnati, forecast a 20 to IS per cent
drop In commodity prices within
nine months. Most other forecasts
were less definite.
Whether the initial crevice in the
high cost of living would widen to
a definite break was uncertain.
Top-level government economists,
on a don't quote me" basis, didn't
believe retail food prices would
match the current sag on the ex-
changes. They saw the wholesale
decline as healthy adjustment
rather than a sign of abrupt col
lapse.
In its psychological effect, one
said, the crop in futures quotations
will strengthen consumer resist
ance to high prices"
Paul S. Willis, president of the
Grocery Manufacturers of America,
said that unless other cost factors,
such as labor" offset lower COM
modify levels, "a halt to the upward
price movement is Indicated"
Basis of Prices.
He pointed out that GINA men,
bers, who include the ma jority of the
Nations makers of processed and
packaged foods, base their prices
not on daily variations but on an
average of raw material costs over
weeks or months.
The general commodity trend was
sharply lower in the week ended
Yesterday. The Associated Press
weighted index Of IS wholesale
commodity prices made the fastest
decline for any similar period OF
it's 13-year history. After a dizzy
skid of 1852 points in the week, it
stood last night at 19497 per cent
If the 1926 average.
After two days of following COM
modities downward, during which
listed stocks on the New York ex-
change lost more than 81 500 000, 900
in market value, the stock market
overcame it's nervous confusion yes
terday.
With many traders deciding the
adjustment of commodits prices was
healthy sign. security prices held
lust about level. Wall Street long
has expressed concern with what
many analysts call artificial values"
of commodities.
Most Government economists
called the commodity price break
"healthful" They held small fear
1cnn COMMUNITIES pace A-ol |