The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-05-19
NO DROP IN Topeka
Local Merchants Discount Pre-.
dicted Market Slump.
Prices Not Likely to Drop for
Some Time, They Say.
BUT PEAK HAS BEEN REACHED
All Dealers Blame Government
Taxes for III. G.. L.
Labor and Lack of Production
Big Factors.
BUT PEAK HAS BEEN REACHED

Despite reports of reductions in the
east, prices in Topeka have not come
, down, nor are they likely to do so for
some time. according to local mer-
chants Topeka business men do not
appear to be overly optimistic in re-
gard to the predicted slump in the
markets.
Dealers in clothing. dry goods.
shoes. furnishings, groceries, furniture
and hardware pointed to various rea-
sons why they do not expect a notice
able decline. They agreed almost
unanimously, however, that the peak
of the high prices has been reached
and that a gradual decline extending
over long period may begin.
Blame Federal Taxes.
Taxes levied by the government are
blamed by all merchants as one reason
for high prices. 1t is pointed out that
every producer. broker, jobber. whole
saler and retailer thru whose hands
the goods pass must pay an excise tax.
He adds 1t to the price of his goods
and in the end the consumer pays it
all and a luxury tax besides.
People do not give this tax propo-
sition enough thought" said L. c.
Rain, of the Capital Shirt factory. "It
amounts to an amazing figure when it
is totaled up"
Rain said there had been a slight
break in the silk market but that wool
and cotton goods will remain high,
except for possible slight reduction
in cashmeres and soft goods.
Even tho wool should go down.
he said, 'it would not make a big diff
ference in clothing prices. for labor is
the one great factor to be considered
now"
"PeopIe Have Spoken"
Fred Voiland, clothier, pointed to
the government as setting the example
in the orgy of extravaganza which
followed the armistice and which still
continues. He declared that sugar
sold in Europe for one-third the price
it was bringing in the United States
The A. E F. equipment, he declared,
was unloaded for from five to ten cents
| on the dollar
But the people have spoken" said
Voiland. They are raising hob with
the dealers and the dealers are report
| ing it to the manufacturers. The man.
ufacturerS are awakening to the fact
that the people will not buy goods at
! such high prices. Furthermore, deal
ers are taking a stand in the matter
and eventually it must bring results
In my opinion. the peak of the high
prices has been reached. but it is inn
possible for any one to say at what
! level prices will settle. The decline
will probably be very gradual and ex-
tend over a period of two years or
| more"
Production Drop Factor.
Roy Thompson, president of the
| Thompson Hardware company. said ii
was impossible to predict what the
| future may bring, at least in hardware
| lines. Lack of production. he said, is
an important factor in the markets
| just now. He held out little hope OF
hardware prices breaking in the near
future, and pointed to the recent great
steel strike as one cause of the pres
ent high price of steel.
o. B. Cutler, of the Poehler Mer-
camille company. said there was nc
prospect of a. break in the food mar
| ket in the near future.
This is an agricultural section" he
said, land more stabilized than the
east. There is no indication thai
! prices in foodstuffs will be lowered
here"
| David Friedman, of the Famous
! Clothing company, declared. Prices
are not going down. At least not until
| labor costs are lowered"