New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-22

substantial increases yesterday in their
volume of business through advertised
price reductions. In the bulk Of eases
these reductions were made on silks
and silk apparel, jewelry, high priced
furniture and similar luxuries. Where,
for instance, silk shirts for men, for
merry priced at from $40 to SIG, were
reduced from IS to $40, madras shirts
I'M the same stores were sold at their
former prices of from 50 to SO, with
no reductions. The big retailers al
mitted, however, that in many cases
the price cuts had been instruments
e. in clearing their shelves of large
quantities of more or less unessential
= articles.
Another department. store head SIP
ported Mr.. Saks's claim that there was
mo general revision in the prices of
staple goods.
Cuts Began in February
He asserted that lower prices in some
commodities began to be apparent as
carly as last February and that cuts
have been made from time to time in
many stores without the advertising
of percentage reductions.
I'VE have not made any horizontal
price cuts on all our goods" he said,
yet by actual comparison our prices
on some lines of merchandise are as
low or lower than those of few of
our competitors who are making greatly
advertised slashes of their entire
stocks"
He stressed the point that reductions
in wholesale circles have applied 60 a
comparatively few lines of merchandise.
The most prominent of these are silks,
1urs and the low end of wooden goods,
clothing, and more recently shoes.
Like most other retailers, he has ad-
l. h,,,- -,
servatively and not to load up on
stocks, even where there is an ap-
parent shortage. AS fast as, signs of
weakness develop in wholesale markets
liquidation of his stocks on hand
Z through the medium of price reduc-
items occur, he said.
Selling agents for textile mills as
s'rt that prices of cotton goods and
worsteds have not been affected bv
that jobbers, garment manufacturer rs
and retailers have been cutting down
IN their purchases since early in Feb
ruary. Some concessions have been
maze by producers Of wooden goods
and silks. The wide open break in
silk prices is reflected to great ex-
text in retail prices, they assert
Jobbers Sacrifice Stocks
Some OF the smaller jobbers in the
textile field, particularly those who
have reaped small fortunes in the last
two years because Of the continual
rise in the price of merchandise, have
been compelled to sacrifice their stocks
on hand through the pressure of the
banks. Manufacturers of apparel of a
stylish and highly seasonable character
have been compelled, largely because
of the protracted cold and rainy
weather, to dispose of their accumu-
lated stocks of madeup merchandise
az prices lower than those named when
the wholesale spring selling season
opened.
The resistance to abnormally high
prices Of clothing, it is believed. has
had marked influence on manufac-
-turers, who in many cases assert they
Will reduce their profits in order to
meet the public demand and permit
! steady flow of merchandise The
rampant speculation in piece goods
among manufacturers of garments
also inflated the price unduly it is
4 asserted, and this imitation is now
: being squeezed out
D.. The view that the present movement
= IS the beginning of natural read
8 ment to normal conditions is supported
by danes s. Alexander, president of the
National Bank of Commerce, 81 Nassau
street. In statement, issued last
nlght, MIR. Alexander calls the present
"a time for -steadness, not for alarm"
Natural Reimbursement
Il feel confident" tie statement con
tlnues, that we are definitely running
into the inevitable and desirable period
OF REIMBURSEMENT, away from the UNI
natural business and financial condi-
tons produced by the war and it's afte =.
math. This readjustment will be dras
TIC IN some respects, but it will BRING
us to more safe, stable and satisfac
tory business basis for all concerned.
ITO be fundamental, the readjust
ment must involve a revision of our
price structure, a more conservative
use of our credit resources and & care
full realignment Of the various elements
in our whole business life in co0rdina
ton with each other.
For instance, it will not be sufficient
merely to force down prices in the re
tail markets. There must at the
same time be an increase of produc-
t1on so that oncoming basic supplies
viii be adequate to demands
From the other point of view. i
would also be futile merely to stimu-
late production and force prices down
This action must be met by a san,
degree of temperance in consumption
on the part of the public, if lowe
price levels are to be established.
mo practicable volume of produc
ton and no feasible scale of price
could correct the situation if excessive
extravaganza in buying and in con
sumption, such as we have seen eve
since the armstice, were to continue
Such extravaganza could not fail t.
produce scarcities and scarctes coul
not fail to produce high prices.
High Cost and Initiation
High prices in turn are productive
OF imitation, both because Of the in
creased amount of capital required t
do business on high price levels and b
the increased volume Of commodit
speculation they produce Fortunate
there are unmistakable signs of in