The Birmingham age-herald., 1920-05-22
Daily Wall Street Gossip
BY HOLLAND.

New York, May 21.-(Special.)-If
 there should be a cash overturn for
 a department store in New York
 amounting to s20, 1000, ,000 following a
 reduction of 20 per cent in the price
 of commodities and due to sale which
 lasted 30 days. then there may be cause
 for rejoicing in some of the banks.
 The estimate is made this morning that
 the announced reduction of 20 per cent
 from the prices heretofore charged for
 commodities in one of the department
 stores has been followed by such ex-
 cellent evidence of the wisdom of ac-
 tion of this kind that it is presumed
 imitation of it will spread until it
 covers the entire country.
 There are several significant fea-
 lures which can now be discerned in
 this new movement which may be de-
 scribed as a successful effort to put
 an end to certain high prices by a.
 silent boycott which the managers Of
 department stores began some weeks
 ago to observe. First of all is the ef-
 feet upon the banks. They have heen
 obliged to carry the merchants and
 this is true not only of New York, but
 in other parts of the country. If
 therefore. by reason of reduction in
 the price in commodities of as much as 20 per cent the department stores receive cash in enormous amount in the aggregate as is understood to be the case then the banks will be re- lieved to some extent of the necessity of carrying their larger customers. In that way they will be able to furnish aid to industries and business which are beginning to insist upon assist ance.
 In the second place this action re- flected the manifest and growing dis position among people to curtail buy ing. It was first felt in the, depart ment stores probably because these carry many articles which are not considered among the necessaries of life. Many of the retail dealers in shoes and in mems hats observed in March that their customary trade of that season of the year was not com ing to them. The cobblers have been benefited by the disposition shown by so many persons to carry on silent boycott against the retail shoe dealer. Thrift has been exemplified by the utilization of footwear which was pre- sumed to have had it's day, but which the cobblers have been able to restore at comparatively small cost so that the shoes look almost as good as new. WILL IT BE NATIONWIDE? The example which was first set In New York, will be, 1t is believed, wide | ly initiated In fact, report comes of l the overwhelming rush of buyers to l the department stores in one of the cities of the Mississippi valley, these | buyers being tempted by the announce ment that prices had been reduced as I much as 20 per cent and in some cases as much as S0' per cent.
 | There came also reports of a like !, tendency from other parts of the coun- 1 try. At present it is confined to the department stores, to some extent to 1 the dealers in furniture and other com
 modities which are not deemed neces- sary to life. Not yet has it reached to l any extent the shops which deal in 1 food. Probably because people must
 have food and are compelled to pay | the prices which are asked.
 l Should this movement spread throughout the country as it seems l likely to do, 1t will furnish an un- 1 exampled demonstration of the ability 1 of the public through silent protest
 or voluntary boycott to put an end to the marketing of commodities at high
 losses of 24 to 31 points for active deliv- cries. Sales, 15700 barrels. Tenders. 600