Evening journal., 1920-05-19
SEE FURTHER
PRICE CUTTING
Attorney General Palmer
Believes Selling Levels
Will Go Lower
ECONOMISTS.
CAN'T AGREE
BY HARRY b. HUNT.
n 3. 4. SIAN CorresnoodenI !


WASHINGTON, May i9-"I firmly
believe the peak Of high prices. partlc-
starly in clothing. shoes. furnishing
ana manufactured commodities OF
general use, has been turned and that
llom now on we will move into an
ga or generally lower price levels"
Attorney General Palmer declared to-
uay IN discussing the action OF big de-
parlhent stores in many OF the large
Sd Sd'ies IN slashing retail prices from
20 10 % per cent.
: Fhis first general step toward price
reductions, Palmer said. marks a VIC
tory FOR the consuming public. u is
que, nrst and foremost, he believes, 10
ule determination finally reached by
the people TO stop buying al the high
ieNel or recent prices TO wear their
I'D clothes, use their old furniture
ana Otherwise get along somehow I'M
in prices drop back TO a sane level.
Incidentally, as 10 clothing. Palmer
believes the overall Club" movement
helped directly: not so much through
ele extent 10 which the public Joined
these clubs, as by siiffening the back
bone OF the ordinary man to wear his
old clothes. even II shiny and shabby,
rather than dig up two prlces-for an
Inferior new suit.
The action OF the Wanamaker and
other big department stores in the
east in announcing a Dat cut Of 90 per
cent In most lines, Palmer said, fol-
lowed negotiations by the fair price
SCENTS OF the Department OF Justice.
But 10 was not the arguments OF
this department that convinced the
managers OF these stores and led TO
The price reductions" he said.
ut was the fact that the people
bad stopped buying at the prices de-
manded. Empty aisles and idle clerks
were the arguments that turned the
trick. Dealers realized that the pub
lie had revOlted, and that If they were
going 10 move their merchandise they
would have TO get their prices down
Somewhere near a reasonable level.
Already the 20 per cent. reduction
made by the Wanamaker and the
other stores initiating the cut-price
movement Is being exceeded by many
Arms in many cities. In Philadel-
phia and New York. for instance.
many stores, not wishing 10 appear
rs simply copying Wanamakers, arc
announcing cuts OF from 30 TO 80 per
cent. in many lines.
IT have been hammered so much
for fOrecasting an early downward
turn in prices, that I hesitate now 10
say definitely that ! believe that turn
has come But I do believe IL.
Reports coming into the depart
nent indicate that the movement Is
general and that the public, having
demonstrated 90 itself that 10 has the
rower TO congol prices by simply
refusing TO pay eXorbitant figures, by
forcing dealers 10 sell their goods at
fair prices, II they are going 10 sell 6t
al. Is from now on going TO refuse
10 stand and deliver any old price
hat may be demanded
The situation with respect 10
ioodstufs, however, Is somewhat diff
ferent. People cannot stop eating
Ike they can stop buying new clothes
Ihey can wear last years suit, but
hey can't eat again last years din
ners
Il believe. however. that the reduc-
tion In the price OF manufactured
commodities will inevitably be fol-
flowed by a downward trend in the
cost Of foods The big results there,
however, are yet 10 come. Ample pro-
duction and regulation Of distribution
and fair price margins will be the
chief aids in lowering food costs"
Economists In Washington. however,
are less sangrine than Palmer, with
respect 10 the real significance and
permanent effects OF these cut rate
Sales.
q do not believe the crest OF the
high price wave has been reached.
either with respect to clothing and
similar manufactured commodities. or
of foodstuffs," said Dr.. Royal Meeker.
commissioner Of labor statistics.
Certainly there is no change in the
underlying fundamental force govern
sg price movements 10 cause any
economist 10 believe ihe downward
isun has come. so FAR as reports from
our Investigators show, there has
been no striking demonstrations OF
economy by the buying public.
--Neither is there likely 10 be while
our currency and credits are inflated
as at present. Clothing prices may
case on slightly. as result OF these
cut rate sales, but ! do not believe the
public can look for permanently lower
prices as yet in clothing. FOodstuffs
sre stlll on the upgrade, with an in
crease in the larger cities last month
or from ) 10 per cent"
Unfavorable credit conditions and a
growing timidity on the part of re-
tail dealers generally. Basil NJ. Manly,
economist expert, believes 10 be chief
y responsible for the present slashing
OF clothing prices. While lower prices
viii continue higher on foods, fuels
and rents.
= Reports show greatest cuts in the
east, particularly New York. philadel-
phla and Newark. n. J. In Cleveland.
Detroit 81. Louis and other cities
some stores are making cuts; also one
or two Chicago stores.