COST OF LIVING.

Hokitika Guardian, 19 June 1920, Page 1

COST OF LIVING.

“ CRASH ” IN UNITED STATES,

AUCKLAND, June 16

The cost of living ill the United States had reached a point where it could no longer he met by millions, and it crashed in a few hours of its own weight, writes the Los Angelos correspondent of the “ Herald”, under date May 24th. 1 The fall came just as great community movements wore being put into operation to • combat the difficulty. Women in many cities formed associations to cut down the- cost of living by curtailing reckless buying, and tliey were assisted by church organisations. Prices fell all over New York on May 9th, as a result of the sensational announcement that the great Wanamaker Stores in New York and Philadelphia would knock' 20 per cent off the price of every article in stock as a deliberate attack on the present inflated values. There was such a rush to cancel clothing orders that some of the smaller woollen mills report cancellations amounting to more than 90 per cent. All stores dealing in clothing reported an extraordinary drop in prices, or at least postponed doing so, in the expectation of a drop in prices. The drop was regarded as certain to come if for no other reason than that the British Government were expected to release an enormous amount of Australian wool on July Ist. The most sensational dAp was in furs, which registered a decline of from 15 to 50 per cent.; The fur trade is forced to the conclusion that the craze is over. There is no evidence of rents coming down in New York, but uneasiness is manifested all through the real estate market. It is thought this summer will see the last of the extortionate prices. It is regarded by influential financial men as certain that hard times are coming, and that they will arrive this autumn with a fall in prices and wages. In the past few days reports have come from all parts of the United States announcing price reductions on practically all classes of goods, with the usual exception of foodstuffs, of from 2Q to 50 per cent. Even dentists in Omaha reduced prices 25 per cent. Spectacular “ breaks ” also took place in the price of cotton, lumber, and corn.