Great Falls daily tribune., 1920-06-06

Opening with holiday, the last week
proved to be colorless, so far as any
particular features in financial affairs
was concerned. All quotations remained
about stationery for the week and on
previous week. Money continued close
yet the prevailing rate has now settled
about . per cent for call loans and last
weeks record was always near TO that
peg, though the opening saw a mark OF
8 per cent asked, settling back to the
8. Sterling made a slight gain for the
week. closing at 1892 and 3.92A for
demand and cables respectively, which
was about four cents above the previous
week: The sterling market showed some
activity at midweek when the peak was
reached for the week at $3.95A for
cables.
Applied psychology appears to he
having an eject on prices, according
to the reports coming from all sections
of the country There is being some
dcflation, at least, in stocks of goods
held and these are beng offered over
the counter at prices which are making
some showing in cutting living costs.
Back of that, however, there os firm
belief that the banking interests are add
oing d pressure to induce the selling
tendency on the part of those holding the
goods. Rates on loans. encouragement
to reduce the size of the plans and other
arguments all appeal to hose holding
large stocks to tighten the burden and
with the prospect, too, of being caught
later with heavy stocks when conditions
have brought lower price levels they
are offering their goods at markdown
prices that are drawing trade.
Some weeks ago the overall fad hit
hn yrh nf al
ue in bringing down living costs, viewed
from immediate results and as an
agency was chiefly good for advertising
few spotlight absorbers who probably
were actuateed from political reasons,
it furnished the psychological force need
ed on the part Of the buyer to help
force deflation. 1t emphasized the ad-
vantages of economy; it made old clothes
seem honorable and it made the buyers
solute need. Dealers realized the force
and while clothiers were not troubled
with orders for overalls. they felt the
effect and it started their psychological
machinery to working. 1t caused intro
spection and study of their own needs
and they say that the future held haz-
ards if they did not properly manage
their stocks which had been purchased
at high levels of cost. Then the price
cutting was inaugurated and with that,
the buyers once more came to market
and the large earnings of the wage
worker got back into the channels of
trade. There need be no expectation
that there is going to be any great slump
in prices. The seasonal stock curtail-
ment with the attendant price reduc |
tons will have to furnish the principal |
avenue for cheaper foods for several |
months. but that has been a benefit and
will continue to be. so if the shoppers |
continue their psychological course and |
not help but reap results from it.
There has been further pressure
brought by the nations banking system |
TO continue the process of deflation |
and while this can not be hastened. the |
bankers are carefully bringing it about. |
Curtailment of loans and other agencies |
are operating to that end. Meanwhile, |
the stock market is suffering period |
marked by lethargy and low prices. the
prices being such as ordinarily would be
rated as gilt edged bargains" yet now
takers because of the money market
conditions.
With the Republican national conven-
ion ready TO open it's sessions tomor
row (Monday) to nominate a candidate
for president and the Democratic party's
national convention but two weeks
lway. the people are showing but small
in politics, less, it is claimed,
'or many years, Congress has ad-
ourned until December unless called in
special session, thing hardly likely to
happen. And while the people seem TO
,e little excited about these things, they
are factors. nevertheless. which will
operate against any rapid progress to
more settled conditions until the presi-
lential campaign is over next Novem-
Der, no matter what the outcome may