The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-11-22
DOWNWARD TREND OF PRICES.

The federal bureau of labor sta
tistics has issued another report in
which it points out a further consid-
1t is a remarkable fact that these re-
ported declines in prices have not
reached the consumer to any appre-
ciable extent on but a few articles of
necessity
Altho announcements OF retail re-
auctions make their appearance daily
in advertisements it is impossible to
much above the pre-war level and
even considerably above the levels
current in 1913. Whether justly or
not there has been a general DISPOSE
ton on the part of all other classes
in business to blame the retailer for
his failure to pass on to the public
the lower prices justified by replace
ment costs, andSget merchandise NOV
ing.
On the other hand the retailer in
sists that he has bought his goods at
much higher prices than prevailing
wholesale quotations and that he can
not afford to take the loss suggested.
Keen students of the business situa-
ton predict that there will be no gem
era1 movement to cut retail prices
until the first of the year, as mer-
chants will try to dispose of as much
Of their stocks as possible during the
rush of the holiday trade.
1t is believed by the Wollman Re-
view that this is a mistaken policy.
1t urges that the ultimate consumer is
thoroly aroused over the price issue,
and while the Christmas trade may
result in the usual purchase of toys
and luxuries for gifts. there will be a
general inclination to await a further
decline before buying staple merchan-
disc. Consequently 1t is probable
that the merchant who anticipates
this situation and cuts prices first will
be the one to take the smallest loss
Sound policy, says the Review,
would appear TO dictate retail redtfc-
lions that will move merchandise.
These prices might easily be above re-
placement costs and still tempt buy
ers. This is the case it is pointed out,
with shoes, textiles, rugs, carpets.
furniture and household supplies of
various kinds. Such a course not only
would benefit the retailer by convert
ing his stocks into cash, but it would
be helpful to the whole business and
industrial situation. 1t would aid
vastly is easing credit 1t would give
buyers merchandise which in some
cases is urgently needed. 1t would lay
that would put hundreds Of thousands
of idle employees to work.
Delay in taking such a step, how
ever drastic it may seem, it is held
will only tend further to increase IN
employment and reduce the purchas-
ing power of the masses. Conse-
quently the longer the delay in max
chant will find the buying power when
he at last faces the inevitable.
other classes of the community
have taken their losses or are taking
them. Agriculture is complaining Bit
terly about being forced to accept
prices which are below the cost of
production for corn, wheat, cotton,
cattle and hogs. All raw materials
are lower, and in only few cases
have producers been able to reduce
their labor costs. Among jobbers and
wholesalers the losses have been
staggering. Cancellations by the very
retailers who are now trying to main
tain prices have severely crippled
manufacturers and large wholesale
distributors.
The retailer. continues the Review,
is now faced by this alternative: He
can take the first and smaller loss
now, il indeed it be a loss, or he
can take a much larger one later, fof
the longer he waits the smaller he IS
likely to find the buying power of the
consuming public.