REDUCTION IN PRICES

Dominion, Volume 13, Issue 202, 21 May 1920, Page 7

REDUCTION IN PRICES

REASONS FOR AMERICAN DECLINE ; WALL STREET AFFECTED Br Telegraph—Press Association-Copyright (Rec. May 20, 5.5 p.m.) New York, May 19. In connection with the reduction of prices,, the newspapers are filled with advertisements regarding special sales. The reasons given are (lift slow spring season; the fact that the public is doing little purchasing, leaving merchants Stocked up; and tho tight condition of the money market. Whether the lower prices have ar-' rived permanently is a question. Leading Chicago merchants state that the reduotions are intended to satisfy the hysterical public demand for lower priccii. Thorp Jias been a general declino in ptqpks in Walj Street, and a further extensive selling of Liberty bonds at low levels, The sales before noon approximated four millions sterling at imr. • My.' W. P. G. Harding, governor of the Federal Bank Board, recommends all banks to liquefy all credit extensions .'which aro permitting large stocks of. raeiuliandise to be held for speculative purposes. Action by Congress is expected with {j, view to driving foodstuffs from storage.—Router. f;V message from New York published yesterday stated that thirty-four nities throughout the country reported that price-cutting was going on to tho extent of 20 to 50 per cent, of all merchandise, even _ including automobiles, and was resulting iij a considerable reduction in the cost of living. Freight congestion, tight money, and lessened buying were assigned aa the causes for the reduction."! WAVE OF PRICE-SLASHING HEAVST VICTORY BOND LIQUIDATION. (Roc. May 20, 11.30 p.m.) New York,, May 20. A wave of price-slashing is sweeping the country. The reductions aro chiefly in men's and women's wearing' ap* pare 1 . _ Many other nianufacturers are following suit. Tho banks notify that piakeifi of non-essentials will receive only very limited financial accommodation on available stocks. The bonds and commodity markets aro highly nervous and have sagged. There is a heavy Victory bond liquidation. WholePalo merchants assert that the move cannot be maintained—Aus.-N.Z. Cable Assu.