FALL IN PRICES

Dominion, Volume 13, Issue 220, 11 June 1920, Page 3

FALL IN PRICES

■RECENT NEWS FROM AMERICA

; BANKS AND PUBLIC COMBINE . " Quite a flutter has been caused in local loinmercial dovecots by the cable mes- . gages from Amccrica and England as to the slump in prices. One effect of tho published me&sages is a sudden cessation lof buying orders, local warehousemen and retailers having concluded that the ; reign of high prices is at an end, and . that they must "stand from under" if ■ they would save thoniselves serious losses, Whether they are right in so acting only .time can determine, but there may lie -another aspect to the matter. For example, one importing firm sought to elucidate the position by cabling to New York for information as to tho actual position. Their interpretation of the reply received is that the retailers in < America, who have becm making enormous profits, are now being forced to reduce their prices on account of-con-nuniers, who- had reached the limit of their -endurance, making a.more .or'less organised stand and refusing to pay tho high' rates. _ The deplorablo transportation facilities existing at the present time in America, mainly duo to labour troubles and the shortage of coal (which in turn led to congestion in the factories and warehouses), was considered to be an important factor in bringing about-a ' temporary reduction in prices. Another factor was "the action of the banks in reducing loans' and overdrafts. Such conditions had so far (continued the ca'blo message), only '.reflected on tho retailers. The manufacturers' prices had remained li.iohnnged, and th?y insisted that tho Position would not affect illeir quotaions, ~ns their production was sold for six months ahead; also that labour's demands were forcing under-production. The probability.-of a short cotton crop would also tend to keep up prices, and although, at tho mom?nt, the market • for certain weights of grey goods was somewhat easier, on account of over- ' speculation, coloured goods were remaining firm. 1 An extract from n letter just received by the local agents of a big Now York exporting firm reads as follows"The independent attitude of labour is decid-' edly reflected in the attitude taken by • manufacturers with their buyers, and the condition to-day is that in placing ninny orders we must personally wait, on tho manufacturer and beg him to accept our order at his term l ;. I can see no help but for higher prices and irreatcr difficulty in securing goods.. It is claiited that the nrxt big strike will bo slaged in-the Rill River sfction, where Labour is now making a demand for a 50 per cent, increase in wages. This will affect the entire textile trade, and is causing much uneasiness among- the* up-town-crowd; that they have been making enormous profits there is no doubt, but they want these profits to continue, and as long as demand keeps uj) tt«rc> seems to be e.very reason to believe that tho higher wages paid labour 'will simply be added on to the cost of material, with a little more for good measure. Thcio is considerable talk in the papers about reducing purchases, but you see very little of this, ind the consumer seems to be buying lust as heavily as ever."