The Birmingham age-herald., 1920-05-20
GUT PRICES SALES
 ARE NO INDICATION
 OF LOWER PRICES
Wholesale Prices Higher Than Ever, Which Means Higher Retail Prices for
 Fall and Winter

Men familiar with Birmingham mer-
 cantile conditions feel that the "cut,
 price wave chronicled in press dis
 patches is misleading.
 They know that prices cannot come
 down lower on staple, standard
 articles because present cost prices
 are hghrs skan ever. Prices paid for
 goods which will be sold next fall
 were higher than those paid for goods
 now being sold
 Unreasonable and ehangeable wear ing apparel are subject 10 cuts and special sales this year. as has been the case in every year. Sales can also be held on standard goods purchased 1 before the big advance came. Birmingham was fully two weeks ahead of the rest of the country in holding these sales
 Reduced price sales are now in vogue in many cities.
 There, seems to be no doubt about that. Birmingham has been having
 them for some time.
 NO SPECIAL SIGNIFICANCE As a prominent merchant put it. these sales have no significance whatever as indicating a downward trend in, prices, but are merely the seasonal repetition of the customary and age-old methods of merchandising, namely. a clearance of perishable mer- chandise and the riddance of such 1 goods as are likely to become a drag on the market"
 As d general proposition, mercantile establishments claim. there is no in dication of lower prices. On the con trary. the trend is the other way The prices at which retail merchants must make purchases of the manufacturer | and wholesaler for future delivery are l in most cases, higher than al present l The prospect therefore, they state, is l for higher not lower prices. | As far as Birmingham as fair price | city is concerned it has already been shown that prices for both mems and furnishings here have increased less than in other southern cities. MUST PAY THE PRICES l "No matter how sincere the mer- chants are in their efforts to bring about lower costs. they are powerless and are forced to pay the prices which
 manufacturers claim they are forced
 to charge. due to the high cost of pro ductIon and of all raw materials" said one of the leaders yesterday. 1 "It is no more possible for any mer- l chant in any city to buy staple cotton goods wooden goods and the ike TOT ! less money than it is possible TOT a grocer to buy sugar or flour Tor less, | The true state of affairs is that all standard staple lines of wearing ap- parel. and of fabrics from which wear linz apparel is made. with the excep- | ton of silk, will see still further ln- 1 creases.
 "The cut-price sales that are being l held this year are, as in all former ] years. only applied to merchandise that is affected by change Of seasons | Men's. women's and children's fashion apoarel is of a perishable nature m 1 that if is undesirable after the season for which it was designed has passed And all merchants everywhere gre holding disposal sales of merchandise SC of that character just as they have always held them in years gone py
 "It is the opinion of Birmingham lea dine merchants that the publlt should apply the rule of commcn sense toward their expenditures. They sborld not be Led into buying unneces- sarify. neither should they abstain from buying things for which they have need. While the prices or SILKS and articles made from silks have de lcreased somewhat. 1t Is believed ba some that the decline is temporarA and that continued demand will sool bring about a reaction and high price' tagain. There is absolutely no chang for staple cottons and apparel iasn toned of wool to be any cheaper Tor th' coming fall and winter"