PRICE CUTTING

Southland Times, Issue 18827, 21 May 1920, Page 4

PRICE CUTTING

THE AMERICAN COLLAPSE. DECLINE ON WALL STREET. By Telegraph.—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) NEW YORK, May 19. In connection with the reduction in prices, the newspapers are tilled with advertisements of special sales. The reasons given are the slow spring season, and the public doing little purchasing, leaving merchants stocked up, and the tight conditions of the money market. Whether lower prices have arrived permanently is a question. A leading Chicago merchant states tVit the reduction is intended to satisfy Che hysterical public demand for lower prices. There has been a general decline in stocks on Wall Street, and a further extensive selling of Liberty bonds at low levels. The sales before noon approximated £4,000,000 at par. WAVE OF PRICE SLASHING. THE MARKETS NERVOUS. NEW YORK, May 20. (Received May 20, 11.30 p.m.) A wave of price-slashing is sweeping over the country'. The reductions arc chietiy in men’s anil women’s wearing apparel, but many other manufacturers follow suit. The banks notify that makers of non-essentials will receive only very limited financial accommodation. The stocks and bonds and commodity markets arc highly nervous and have sagged. There is heavy Victory bond liquidation. Wholesale merchants assert that the move cannot be maintained. PREVENTION OF SPECULATION. CONGRESSIONAL ACTION EXPECTED. WASHINGTON, May 19. Governor Harding, of the Federal Reserve Bank Board, recommended all banks to liquify' all credit extensions which are permitting large stocks of merchandise to be held for speculative purposes. Congressional action is expected with a view of driving foodstuffs from storage.