HOW TO HALT RISING PRICES?

Chronicle (Levin), 16 January 1947, Page 3

HOW TO HALT RISING PRICES?

U.S. CUSTOMER RESISTANCE CAUSES CONCERN lieceived WVdnesdav, 7.4.") p.m. NEW YOKK, Jun. 14. Thousands of retailers froni all secj tions of the United States are attendj hig a convention of the A'ational Ketail Diy Goods Association wliose main j problem in 1947 is customer resistance to high prices and how to overcome it. I The New York Sun savs: "jMot only ! merchandise and operating costs [ high but further increases are in prospect. Bonie merchants are reconciled to the probability that there will be a lull during 1947 while the necessary price adjustinents are being niade, but few are quite sure how the revisions will be accomplished. and who will make them. It lias been suggested that retail gross ' profit margins can be pared, fhus eushioning soiue of the liiglier wholesale costs of nierchandise, but store payrools aro the liighest in retailing history and otli er - expenditure is proportionately high. "It soenis safe on the whole to surinise that the ultimate solution will be to conceutrate on lines of goods that | niove easily, eliininating as far as posj sible those to which strong consumer resistance is expected. " The Yow York Times J linancial editor says: "rManufacturors, despite cries of anguish about costs and prolit margins, ! will liavo to lower their prices to meot | the customers' ability to consume or | close up shop. Assuming that a frea. j conipet itivo economy includes some j freedom of clioice for consuiners loo, prices nceil not i'ollow costs up the ladder — nut if we decide we wiJl not ieL them. We show no signs of so decidI ' ' j Meanwhile houseliolders in the J'histern Blates welcome a further reducliou oi' (i to H cenls per 11) in butlcr prices following another wholesale i>rice drop yesterday which is alLribuled to a glutled markel. Today's retail ju'icc of 70 to 7L' cents per 1b for the choicest is only a few cents above the Juuc price control ceiling.