Evening Republican, Volume 23, Number 206, Rensselaer, Jasper County, 26 August 1920 — BUSINESS FEELS DROP IN PRICES IS INEVITABLE [ARTICLE]

BUSINESS FEELS DROP IN PRICES IS INEVITABLE

Chicago, August 26.—Extravagance in the working class is on the wane and a feeling of cautionrules all business because it is felt that a drop is prices in inevitable, according to the monthly statement of the federal reserve bank here today. The buying public, the statement said, is checking the extravagances which have made “bonanzas” hitherto for industries and trades catering to popular desires and needs; regardless of prices. “Caution rules in business in the seventh district,” the statement said. “The producer is cautious for the very good reason that mistakes cannot be made in high priced labor and raw materials without loss both of prestige and profits. Middlemen are cautious because the retail dealers cause them to be. Retail dealers are taking frequent soundings because they have sensed shoals in the popular purchasing power.” . • , The, key to the entire situation, it is declared, “is a dearth of liquid capital and restriction of bank credThis “restriction” resulted in a shifting of burdens responsibility. Sales dropped and goods piled up in warehouses. These will be sold at a loss, eventually, it was situation has improved, though there is still some shortage, the statement declared. The housing crisis continued acute. Wq are unloading a <* r °f 38, 39 and 48-inch fencing. 3- C. Gwin Lumber Company.