Show Slowly oward Normal I By Ira C. C T THE HE Contention presented on several occasions that lower prices A I for commodities were certain to to follow the decline in exports and ind the increase in imports but that there would be a gradual drop In n prices rather than any radical change also is the vi view w expressed by jy the Commerce er e Monthly Issued by the National Bank or of o d Commerce of or New New York I From Froni June 1919 until January 1920 Commerce Monthly says commercial and financial activities were stimulated by two main factors the he strength of the domestic domestic demand demand for tor goods for tor immediate consumption and Ind the demand from abroad Domestic purchasing power has represented to 0 o an undesirable extent the expenditure of or which should sho have been set side aside as capital and production has not expanded on cr credItS credit dit but It has neither Europe has has' given evidence of or unlimited demand on credit but It has neither neither restricted Its purchases to commodities for tor use In pro productive activity nor hown evidence of ot vigorous rous efforts to expand production In order to liquidate its ts Indebtedness To correct correct this this this' situation conservation ot of credit both for domestic and foreign transactions became an absolute necessity some weeks weeks ago igo and the effects o of the steps t ps ta taken n to o secure it iJ will doubtless become evident In the near future 1 r The wholesale trade In many lines reports report's retailers as buying with c aution and end m manufacturers in those lines lines which produce e goods goods good of ot those lasses classes which enter immediately Into consumption n are m meeting with a uncertainty In other words It now OW seems probable that lh there re i Is a definite I mit to the demand of ot the public o at t present prices Conditions inthe inthe export rade trade are ven even more difficult The discount on E European exchanges in this arket has now reached a a. point where a a. curtailment nt of our export export trade Is Is Taking t aking place Buying orders are are being canceled and ships are leaving our shores bores In ballast The contraction of at domestic consumption and the dec decline Tn n n exports will probably be reflected In lowered prices Moderate price Recessions and price stabilization are a a. desirable and Indeed an an Inevitable Result of at the steps which h have e been been taken gradually to bring commerce and Industry to that same same samer productive basis basi which is Is the only foundation for tor torp p permanent nt prosperity i iThe The bank banle points out that while curtailment of at exports may result In an ancess excess cess of t cert certain in c commodities there are are s some me lines s where a a. positive sho shortage tage prevails and concludes T Reasonable grounds exist therefore for tor the th belief beliet that the period of at r readjustment adjustment will be characterized characterized not by a general and radical price declIne decline Rut but by a a. gradual readjustment which will serve serve to to to divert credit and abor ab r Into nto those lines which will meet the cou country's try e essential inUal needs for productive t purposes |