The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-05-19
RAILWAY TIEUP
is Chief FACTOR
Oversupp!y in Some Districts,
Shortage in Others.
Housing Situation Is Slowly Ad-
justing Itself.
MANUFACTURERS SEE BREAK
Difficulty in Obtaining Loans
Forces Dump on Market.
Garment Makers Declare Peak
of Prices Past.
MANUFACTURERS SEE BREAK

Washington. May 19.-Price cuts in
clothing and merchandise are the be-
ginning of a horizontal reduction in
costs of all commodities. including
food, in the opinion of Bernard NJ.
Baruch. noted financier. former chair
man of the war industries board.
"A nationwide buyers strike
against high prices has begun" said
Baruch today. There is no doubt It
will extend itself to food prices inso-
far as people are able to curtail their
consumption of necessities. If prices
generally go down too far. however,
there is danger of a rebound"
Banks Tighten on Loans.
Curtailment of long-term loans COW
ering non essential operations and dis
couragement of unnecessary borrow
ings of all kinds will be the foundation
of the federal reserve systems new
policy designed to deflate the national
finances. American bankers have
b -nledzsd Themselves to acezepsrate WITH
the reserve board in the effort to carry
out the plan.
The public is on strike against
high prices and there is a def
mite downward trend in com
modities thruout the country, ac-
cording to advlces here today. The
people are acting together, government
economic experts believe. People have
delayed purchasing their summer out
fits and in consequence merchants
have been left with large stocks on
hand.
With price reductions being re-
ported from all over the country, Sena-
tor Kenyon said today:
1T is an indication that some of the
people have at last decided to stop
paying exorbitant prices. The more
widespread that decision, the quicker
prices win fall
There are signs of a general price
reduction" said DR.. Royal Meeker.
government economic expert.
( think it is safe to predict that
this is shown by the way the public
has stopped buying in the mercantile
line. At least there has come an end
Of the upw. rd movement swing when
everybody tried to outdo his neighbor
in extravaganza.
THE action of the federal reserve
board in raising discount prices has
had an effect There is also some in
dication that speculation is being dis
coura ged. This should leave more
cash and credit for the man engaged
in legitimate enterprise
Going Back To Normal
The nationwide railroad congestion
is the most important factor in the
price situation, in the opinion of many
government officials. 1t is causing a
shortage of commodities in some dis
tricts and an over-supply in others.
There are indications that the hous-
ing situation is returning to a sound
basis. according to reports here.
Important developments in connec-
tion with the price situation were ex-
pected to come today from the meet
ing here of grain dealers for con-
ference with Julius II. Barnes, head
of the United States Grain corpora
ton
They were to discuss extension of
the government wheat price guarantee
beyond June l. when it expires, and
the present law.
Gotham Prices on Toboggan.
New York. May 19.-Prices are on
the toboggan. it is believed by leading
merchants and business men here.
Cutting of prices of from Is to Sc
per cent on ali lines of general mer-
chandise by many stores is the "indf-
Gator" of the break, they agreed.
New York newspapers today car
ried stories announcing drastic cuts in
prices
The drop was due to the gradual
slackening of public buying and tight
money conditions, in the opinion OF
financial leaders. They pointed to the
huge sale of liberty bonds on the New
York exchange yesterday as an indi-
cation of the money market condition
The total shales of all classes of lib
erty bonds were $27.95S.500. Because
of difficulty in obtaining loans from
banks, war bonds were being sold tC
provide money for conducting bust
ness
Members Of the National Associa-
tion of Manufacturers. here for their
annual convention. expressed the be
lief that the peak of high prices was
reached.
Dull Buying Causes Drop.
The drop in prices was attributed
to dull buying" by Joseph Appel OF
Wanamaker's the first store here tc
announce drastic price cut.
When buying is dull there is GER
tain to be a surplus OF materials and
surplus Of materials is certain tc
make for a reduction in prices" he
said.
Garment manufacturers agreed Will
this statement, saying that q survey o.