The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-05-10
PRICE DOWNTURN IS
Permanent, BELIEF
OF BUYING EXPERTS


have been made recently in the prices
Of all commodities by department and
other stores throughout the country
has led the buying public to wonder
whether or not these reductions are
the forerunners of continued reduc'
ton in the high prices that have pre-
vailed since America entered the
war
In an effort to ascertain the cause
and probable extent of the downward
movement, The New York Times has
made inquiries among representative
merchants in the wholesale and retail
lines as we'll as among financial lead
ers. Their replies seem to agree that
a permanent deduction movement mas
begun.
Even those who are not yet ready to
say that a general fall in prices IS 10
be expected are unwilling to predlct
that presen levels will be maintained.
A majorit, of wholesale and retail
dealers admit that prices are too hlgh
and that /. reaction must come before
the public will begin free buying.
One phlse of the reductions made by
department stores has been the EFFORT
of middemen to discover how the
plan is worked. Dozens Of wholesale
end retail dealers confessed that they
Or theiragents had made purchases at
departuent stores for comparison with
their own prices and qualities.
The representative of big London
denartaent store said he had bought
from a department. store certain ar
ticles muh cheaper than the prices
nuoted manufacturers Purchasing
agents ir New York have. been In
} structed o get to the bottom of the
movemer, and in connection with
their Investigations, these resident
BUYERS are meeting almost daily with
Manufacturers and wholesale dealers
seekins solution of the puzzle.
jurpIus Stock Of Clothing.
In ne wholesale clothing trade it is
eenerlly admitted that there is surp
lus q goods. By some this surplus is
saidto be due to unreasonable wealth
or. md by others it is admitted that
thepublic has refused to pay existing
prfes.
A number Of representatives of this
group said reductions must be made
,ll along the line, from the manufac
tuInr to the retailer. With overstocks
alr,ady on hand clothing dealers are
sail to be canceling orders, while the
mis- are eager for business and vii
ling to offer price concessions.
is now predicted that fewer sale:
vii be made during the coming season
fthe reports of early Fall orders
BOXED by the clothers. may be taker
& fair indication but what Is lost il
plume. the clothing trade hopes, will
@ made up in a concentration OF
higher class garments.
In the silk market it is no secret tina
plice reductions which already have
been or soon are to be made. are to b'
permanent Huge stocks Of raw silks
are held in this country by japanese
interests and must be released follow
ing the break in the Japanese market
at substantially lower prices thar
were prevailing during mid-WinteI
when top prices were realized for raw
material. Members of this trade d.
not hesitate to say that prices hav'
teen too high, and that the time ha
come for a readjustment on entirel
:. new basis.
Cotton Market Waiting.
A disposition to await development
has marked the cotton goods market
There has been only gradual easin
eff IN the prices of printcloths an
sheetings which have wide variety O
uses when finished. In the prices O
sateens and other fabrics used by tn
clothing trades the reductions hav
been more marked.
Belief is expressed in the financia
district that commodity prices wi
continue downward because it Is be
lieved that wholesale prices reache
their peak in February. and that will
IN a few weeks the reaction will take
stronger hold of the retail markets
There is no statistical evidence t
show a contraction in the volume G
hank credits, but bankers say they ar
limiting accommodations for new al
nlicants Francis H. Sisson, Vic
President of the Guaranty Trust con
pany, predicts gradual recession c
prices. He says the public is curtailin
its purchases. and urges that tn
present is a god time for judiciou