The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-02
UNCERTAINTY OF
TRADE INCREASES
Rapid Spread of Price Cutting
Is Also Accompanied by
Business Hesitation.
DISTRIBUTION AFFECTED
Reimbursement, Although Fore
Swallowed. Finds Certain
Lines Unprepared.
DISTRIBUTION AFFECTED

The rapidity with which the wave OF
price cutting has spread over the coun-
try has come with no little surprise in
some quarters. and certainly has come
much faster than was expected. As a
result there has been growing uncer-
tainty and hesitation in business during
the last week. according TO weekly re-
views of the situation. That slowing up
of buying plus the cumulative effect of
declining business which has been APP
parent i'm recent weeks have affected
distribution in no little degree.
Extension of the price cutting wave"
says Duts ReDiclc. has been more rapid
than was generally anticipated and is
not unnaturally being accompanied by
growing uncertainty and hes .tation in
business. The present reimbursement al
though clearly foreshadoved, has ap-
parently occasional surprise in various
quarters, and has seemingly found some
interests unprepared to meet the new
conditions Artificial maintenance of
prices at abnormaliy high levels has
been rendered more difficult, IL not inn
practicable. by banking restrictions and
q lessening of consumers extravaganza
and the desire to move goods becomes
greater as pressure of accommodations in
creases. The existing situation, If caus-
ing embarrassment and loss In some in
stances. is not necessarily portent OF
widespread and serious unsettlement
and is not without wholesome and en-
couraging features.
ILLUMINATION of the weak spots de-
veloped during the late period of infla-
ton is in progress, as the failure statis-
tics testify, and current and prospective
price reductions, with the years album
dant crops. form a foundation for sub
sequent commercial expansion along
more conservative lines
,.f
tedly heavy, a renewal of free buying
may conceivably follow a general and
decisive lowering of prices. and COM
PARSONS of many wholesale quotations
demonstrate that the yielding in pri-
mary markets has already been substan-
Z tial. The significance of the movement
however, is somewhat qualified by the
fact that corresponding recessions are
not being witnessed in retail channels,
and that the consuming public while
finding some things cheaper. have not
yet gained the full benefits OF the price
reaction.
Reluctance on the part of many mer-
chants to sacrifice profits by offering
goods on a replacement basis tends to
delay business revival, but holdings are
burdensome in not few quarters. and
surplus supplies cannot be carried in
definitely. AS an element in the price
readjustment the improvement in rail-
road transportation which has made
possible a more adequate distribution Of
commodities, is of no uncomfortable inn
portance'
Brddstreeps State Of Trade says: "A
more hesitant note is sounded in the
trade reports this week. and buying has
slackened as the result of past and
present marking down of prices in many
Ines of wholesale trade. In many re-
In, al
automobiles are stressed as being the
impelling oluses of the quoting down of
trade buying and the lessened activity in
industry, but in "a few reports warm or
unsettled weather the nearer approach
of the election and heavily declining
prices for farm products are all mem
toned as contributing TO the slower pace.
ut seems without question that the
check first given TO buying by consumers
last spring plus the closer scrutiny of
credits and lessened accommodation to
borrowers desiring to carry large stocks.
have had a cumulative effect, which has
ueen accentuated by recent seasonal
changes not bringing anticipated re-
awakening of demand.
"Unwilingness to buy, except TO sat
isfy immediate needs and absolute re-
Quirements is still the chief subject OF
comment, and this attitude is frankly
stated as due to expectations that fur
Their declines are possible pending the
sterilization Of values which is expected
10 result as the needs, seasonal ard
otherwise. of a still highly prosperous
country develop. A slow and hesitant
revival of buying is looked for, but the
imperative needs OF 100000, 900 people
seem bound to introduce this stabilizing
element as soon as the public is con
vinced that the liberal reductions in
prices that have occurred in many lines
1T wholesale have found adequate renec-