The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-06-22
THE PRICE CUTTING TIDE.

THE PRICE CUTTING TIDE.
The great sales of goods to the pub
lie at reduced prices by manufactur-
ers and department stores all thru the
country. while they do not mean nee
essafily permanent reductions in
prices, must have a certain effect upon
the minds of all the retail purchasers
everywhere. Some OF these sales in
New Work City, it is reported, include,
in several instances, enormous guam
titles of standard goods like shoes,
ETC., at what seem to be startling re-
auctions
ment of the great army of people ev-
erywhere. who heretofore have been
buying recklessly regardless of price;
calling a halt on such blind purchasing
and restoring a certain amount of the
old-time caution, inducing people to
negotiate in buying. as they used to do,
turning down articles when the price
seems too high. 1t is a step toward
normal conditions.
continuation of such sales by
manufacturers and department stores,
says the Bache Review, will, 1t would
seem, be good policy. This is especial
ly true with regard to luxuries and
non-essentials. There is surely COM
ing a time in this march of the indus
trial forces toward normal conditions,
when such goods, If unsold, will be
stranded high and dry, whereas now
most of them can be disposed of at
some price. for cash. There is no wis
er thing for business men to do now
than to get out from under large loads
and convert stocks of goods into cash,
even IL these goods cannot, for the
time being, be replaced at a profit.
This is no time to speculate in goods
or to hold them for higher prices. The
public has been shocked into a certain
amount of common sense in buying by
the commercial crisis thru which we
passed in March and which would cas-
lily have developed into a currency
panic had the banking system of for
mer years been existent.
Merchants seem impressed with
these facts. and it is said that prac-
tically all stores are buying only their
bare needs, many cancellations hav-
ing been reported. The eastern tex
tile mills have restricted operations
to check the rapid strides production
was making in some lines in overtak-
ing demand. But merchants feel sure,
II is said, that continued economy on
the part of the public will eventually
compel recognition from manufactur-
ers in lower prices. The buying of
furniture, for instance, at present
prices, 1t is reported, continues to de-
cline, while production is increasing
and dealers expect a readjustment in
furniture to a more normal basis.
Shoe production is regarded as having
caught up with the demand"
The reaction in prices toward lower
levels, it is pointed out, will be grad
ual Nevertheless it is on its way. An
indication is the reported decision of
the National Association of Manufac-
turers, at their meeting last month. to
reduce prices of their respective prod
ucts by next autumn from Is to Is
per cent. The Retail Shoe Dealers
association, at its monthly meeting, is
reported to have approved the ap-
pointment of a committee to confer
with the department of justice on
plan TO cut shoe prices. These are all
voluntary movements guided by bust
ness instincts and honesty, says the
Review. but the leaven is working.
The Dry Goods Economist says: "In
the textile markets the downward
trend of the price level becomes more
clearly defined from week to week. It
is worldwide trend. affecting alike
raw materials and finished products,
and 1t is being brought about by a
combination of depressing factors,
chief among which may be mentioned
the exhaustion of buying at high
prices. financial stringency, consumer
reaction and increasing supplies.