Agent at New York there is reason to believe that the peak of prices has been reached and that from now on commodity prices will show a steadily downward trend. The indices used by this official, reports the ww York Times," have displayed further downward cour:
during July, and while, as he it still is too early to say positi that a permanent price deflation has begun, there at least is room for optimism, both as regards prices here and—those abroad.
_The bulletin, commenting on this situation, says:—
"During the last 30 days the slight: declines in the various price indices which were noted in last month's report have made further progress, not only in this country. but abroad as well. There has also been a perceptible lessening in the volume of credit, as reflected in the total earning assets of the Federal Reserve Banks, which declined $104,770,000 from July 9 to 23, increasing their reserve ratio from 43.1 per cent. to 44.4 per cent.
"Tp is not improbable that the diminished excess of exports over imports in June—about $78.000,- 000, compared with $200,000,000 to $30,000,000 in recent. months—u: have had its influence in the recent tendency toward lower prices in a number of important commodities. These price declines, which have been confined to certain industries, are evidence that for the time being at least the supply of goods within those industries equals. or exceeds the demand. When this equilibrium is reached such runaway prices as undersupply makes possible usually disappear rapidly.
Text read from the printed page and cleaned; old type leaves the occasional error.