ECONOMIC BLIZZARD FEARED IN NEW YORK

Rotorua Morning Post, Issue 5287, 27 December 1946, Page 5

ECONOMIC BLIZZARD FEARED IN NEW YORK

(Press Assn-

FANTASTIC PRICE CUT STORES GLUTTED WITH UNWANTED STOCKS

—Rec. 9.30 p.m.)

NEW YORK, Dec. 26, Alarmed at the prospect of being left^ with heavy carryovers, some of New York's largest- stores took the unprecedented step of slashing prices in an effort to shift over-priced Christmas stocks. Prices are fantastic. The stores" aie overflowing with over-priced luxury goods, but little is availahle for people of ordinary means. Macy's, which claims to be the big-gest department store in the world, announced a reduction in toy prices by as much as 60 per cent. In Youngstown, Ohio, the largest department store a few weeks ago sc-ld a shipment of 300 tricycles at £30 each. A second shipment moved so slowly that they were marked down at less than £7, and a third ship-

ment is not moving at £5 each. The store is afraid to buy more. Similar reports are pouring in from all over the country — Philadelphia, Chicago, Los Angeles, San, hrancisco. Wc-rried about the future, the Department of Commerce has warned business men not to acculnulate stoclcs they cannot sell. It fears that the receuit 4000 million dollar rise in stock values could be a warning of an. economic blizzard. "Unfilled orders are slispect — they could- melt rapidly as a result of cancellations," the Department warns. Other Government statisticians, however, believe that the amount of cash and working capital at the disposal of business is so great that even a substantial decline in the price level would cause no widespread embarrassment. No wonder the Washington Post asks piteously: "Wliat has happened tc the g-ood old 15-cent handkerchiel's? They would be perfect for a good cry." That this last dizzy spending splurge mgy force buyers out of the market in the NCw Year is the fear oi many businessmen. Their anxieties are reflected in the 1947 catalogues of the great mail order houses like Montgomery Ward, which, finding themselves with the threat of heavy stocks on hand, are" marldng down last season's gc-ods by as much as 20 to 30 per cent. Many articles — espeeially metal goods, furniture and electrical appliances — are, however, dearer in the new catalogues by 10 to 30 per cent. Some of New York's largest stores unprecedentedly announced "preChristmas clearance saies" in an eft'ort to shift stocks which were over-priced even for the Christmas spenders.