The Bridgeport times and evening farmer., 1920-10-13
PRICE CUTTING
 CAUSES SURPRISE AND UNCERTAINTY

The rapidity with which the wave of price cutting has spread over the country has come with no little sur prise in some quarters. and certainly has come much faster than was ex- pected. As a result there has been growing uncertainty and hesitation in business during the last week, ac- cording to weekly reviews of the sit nation. That slowing up of buying plus the cumulative effect of declining business which has been apparent in recent weeks have affected distribu- ton in no little degree.
 Extension of the price cutting wave" says Dun's Review, "has been more rapid than was generally antic ipated and is not unnatura1ly being accompanied by growing uncertainty and hesitation in business The pres ent readjustment, although clearly foreshadowed, has apparently occa- stoned surprise in various quarters, and has seemingly found some inter- estS unprepared to meet the new con- ditions. Artificial maintenance of prices at abnormal1y- high levels has been rendered more difficult if not tmpracticab1e, by banking restrictions and a lessening Of consumers extrav- egance and the desire to move goods becomes greater as pressure of accu- mutations increases. The existing sit uation. if causing embarrassment and loss in some instances, is not neces- d serious unsettlement and is not with out wholesome and encouraging fea- lures.
 ''Elimination of the weak spots de- Veloped during the late period of in- hation is in progress. as the failure statistics testify, and current and prospective price reductions, with the years abundant crops, form a foun- dation for a subsequent commercial expansion along more conservative lines.
 With potential requirements ad- mittedly heavy, renewal of free buying may conceivably follow a gen. eral and decisive lowering of price and comparisons of many wholesale quotations demonstrate that the yielding in primary markets has al ready been substantial. The signifi- canoe of the movement, however, is somewhat qualified by the fact that corresponding recessions are not be- ing witnessed in retail channels, and that the consuming public, while finding some things cheaper, have not yet gained the full benefits of the price reaction.
 Reluctance on the part of many merchants to sacrifice profits by of fering goods on replacement basis tends to delay business revival, but holdings are burdensome in not few quarters, and surplus supplies cannot be carried indefinitely. As an ele- ment in the price readJustment the improvement in railroad transporta- ton, which has made possible a more adequate distribution of commodities, is of no inconsiderable importance.
 BradstreetS State of Trade says: "A more heSitant note is sounded in the trade reports this week, and buy ing has slackened as the result of past and present marking down of prices in many lines of wholesale trade. In many reports the recent cuts in cotton goods and automobiles are stressed being the impelling causes of the uuieting down of trade buying and the. lessened activity in industry, but in few reports warm or unsettled weather, the nearer ap- proach of the election and heavily are all mentioned as contributing to the slower pace.
 ''It seems without question that the check first given to buying by con- sumers last spring plus the closer scrutiny of credits and lessened ac- communication to borrowers desiring to carry large stocks, have had cumulative effect, which has been ac- centuated by recent seasonal changes not bringing anticipated reawaken- ing of demand.
 "UnwiIlingness to buy, except to satisfy immediate needs and absolute requirements, is still the chief sub feet of comment, and this attitude is that further declines are possible pending the stabilization of values which is expected to result as the needs, seasonal and otherwise of still higly prosperous revival of buy ing is looked for, but the imperative needs of 1O6,O0O,000 people seem bound to introduce this stabilizing element as soon as the public is con vinced that the liberal reductions in prices that have occurred in many lines at wholesale have found ade- quate reflection in prices to the actual consumer"