AMERICAN TRADE.

Taranaki Daily News, 11 January 1921, Page 5

AMERICAN TRADE.

MAD EXTRAVAGANCE OVER. CURIOUS ECONOMIC PHENOMENON. London, Nov. 18. The New York correspondent of The Tinies foreshadows what must inevi* tably be the sequel to high prices and high wages. “Astonishing facts illustrative of the pitch to which things have arrived are reported daily in the newspapers” says the wrter. “For instance, 12,000 men employed in the building trade in Baltimore refused to claim an increase in their wages from 4s 6d to 5s *an* hour/ which was promised them last spring by their employers. They are quoted as saying that, as prices seem to be falling, and steady work is assured them at existing wages, they have decided to be satisfied with what they have. One swallow does not make a summer, but the growth of unemployment in every part, of the United States is undoubtedly having its effect on the dispositions of portion of the working classes. The era of mad extravagance is definitely over. The silk-shirted working man is disappearing, and the cheap jewels which he purchased in the heydey of war prosperity are slowly finding their/way into the pawnbrokers’ windows. The diminishing buying capacity of the public has created a growing disinclination to acquire goods at absurd prices. For months past Americans have been reducing their purchase of clothing, other than necessary articles, to the lowest possible limit. The result of this consumers’ strike is now visible in the advertisements published by practically every large store in New York and elsewhere, announcing bargains and 25 per cent, cuts in prices, wholesale prices began slipping down last spring. Retailers then ceased buying, but they did not themselves, except temporarily, reduce prices to the public. Now they are obliged to real ise on their stocks. “This necessity has produced a curious economic phenomenon. I met. for instance, a young bank clerk the other day who was trying to find among his friends and acquaintances customers for thousands of suits of clothing. In other words, banks'which have accepted commodities as securities for loans are now finding themselves compelled to market these commodities themselves. One hears of confectioners being solicited by banks to buy butter at below market prices, and other banks • selling wool, clothing, and sugar directly to the consumer. The example of the banks is being followed by manufacturers, who, having suffered numerous, cancellations of orders, are opening rooms in their factories and offering goods directly to the public”