New-York tribune., 1920-05-21

have been around soliciting trade. We
feel that we eventually can buy cheaper.
Already wholesaler dealers in many
lines have broken their market and are
offering goods at reductions to the re-
taller"
y. Spear, owner of large retail! fur
niture house, speaking of trade IN that
line. said:
eve retailers of furniture refuse
longer to be dominated by the manufac-
turer and are not buying. Therefore, we
are not replenishing our stocks and are
not making any radical reductions IN
price. Prices will come down gradually,
They will fall when the manufacturers
are brought to realize that they cannot
sell to the retailer at fluctuating prices
Retail merchandise sales yesterday
we're reported TO be heaviest in silk,
which already had slumped in value be-
fore price reductions were announced.
"The buying class are out IN force
to-day" said one merchant.
"There has been more bona fde buy
ers in this store to-day than for many
weeks-persons who come in with the
actual intention of spending money.
Many OF them are from out-of-town."
Reserve Bank War Felt
Another element held equally re-
sponsible for the break in the mer-
chandise market-the Federal Reserve
Board Bankers war on high prices
was felt yesterday. Several New York
merchants were willing to admit the
effect of this situation IN their line
of business In the absence of loans,
which would allow them TO hold over
merchandise stocks. they are forced
to liquidate in order to restock when
they feel that wholesalers and manu-
facturers have brought prices down to
Il fair level.
Far from any disinclnation to retard
price lowering. the National Manutac-
turers' Association. which closed its
annual convention here yesterday, re-
solved to urge all its members to CO.
operate in all reasonable efforts to
bring about that result"
Reports from all parts Of the United
States emphasize the price slashing
campaign is continuing, especially in
merchandise. Few cuts have been ef-
fected in foodstufs, though advices
from meat packing centers indicate
there will be break in that line
following the clearing UP of railroad
freight congestion.
Speaking o. the nationwide price
cutting situation William Fellowcs
Morgan. president of the New York
Merchants Association. said:
"l7he reduction of the prices of
merchandise, which now seems to be
prevalent throughout the country, has
been anticipated. 1t was inevitable as
orc. Of the steps in the defation which
we must go through in order to regain
normal conditions.
''she necessary preparations for the
shrinkage Of values, which really
mcans an increase in the value OF the
dollar, were long ago made by the
banks. / do not anticipate that we
shall have any trouble as a result OF
It. although certain lines OF industry
may be more or less disturbed.
"This readjustment has been re-
tarded by the interruption Of the trans
portation lines, especially in this city
The tendency OF this interference with
the free movement OF merchandise has
been to keep prices at high levels and
even TO increase them by cutting off
supplies.
declined | believe to be attributable
mainly If not entirely to this cause
Gus progress toward normal conditions
viii be accelerated and the danger Of
disaster Will be lcssened by putting a
stop to transportation hold-ups. which
constitute menace 70 the entire com
mupity.'