Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-06-20
HIGH AUTHOMT|Esv VIEW
SLUMP THAT MUST COME
Both Bradstrcct and Dun Picture
Conditions That Bctokcn Lower
Prices i'm Many Commodities,

'Bradstreets." issued in New York
yesterday said:
Rather more pronounced quiet In
new buying ut wholesale and from
manufacturers. fair purchases ut re-
tail. stimulated by price reduction
and better weather, continued COM
plants of railway congestion affect
ing receipts of raw materials and
shipments of manufactured goods but.
OH the favorable side. an apparent
country wide Improvement in grain,
and cotton crop conditions are the
outstanding features of .he week
Best reports as to trade distribu-
Gions. but here at Wholesale, as we'll
as ut retail, the talk of conservatism
in buying is more pronounced.
In big industrial ccntcrs of the
East and particularly at textile CEN
;crs and markets the feeling is rather
more quiet. Indeed in raw wool, hide
and leather, cotton and wooden piece
goods lines mention is made of dull
in June. Cotton goods, especially
yarns and scmi;ln:sil.l lines Ike
print cloths and gray goods, prices
arc weaker and curtailmcnt of yarn
ccnters. Southern and Pacific Coast
trade. the last TO feel the quoting
down now report trade fair.
Az Dun Sees the situation.
II. G.. Dun & Co, in their weekly re-
view have this to say:
The Influences that have recently
made for. abatement of business ac-
tivities remain conspicuously in evil
dcncc, and existing conditions afford
sharp contrast to those which pre-
vailed at the beginning of last sum-
mcr. Whereas the earlier period was
"A i;il nj
following a lull of several months
duration. that subsequently set new
prcccdcnts in magnitude of transac-
tons and i'm high price levels, the
progressive contraction of operations
In various quarters. and by clear
signs of price reaction.
The latter movement, the genuine
ness OF which has been questioned by
not 4 few people. has gone farther
in some lines than Is commonly inn
GGincd. and proof that Il rcadjustncnt
Is under way does not lie wholly in
compilations of index numbers. That
some commodities maintain an ap-
pcnrancc of firmncss or are but little
cheaper. is only because sutiicicn. de-
mand to establish Il trading basis is
lacking. and the significance of the
changed attitude OF many sellers does
not everywhere escape notice.
The Slump That Must Come.
While resistance to price declines
is still pructiccd. and although pre-
dictions OF later advances are not
absent. yet buyers waiting policy.
the forcing of liquidation through
financial pressure and other causes.
and the charging imports from
abroad form a combination of factors
that is steadily making a deeper i'm
preston upon sentiment. and is re-
Elected In tho Offering Of different
classes Of goods at concessions. With
cancellations and revisions of orders
OF more general occurrence. curtaii-
mcnt OF manufactuTinG is spreading.
and the resultant reduction of en-
ploymcnt, which has reached con-
siderable dimensions in some indus
tries, is not unnaturally tending TO
lower the public buying power.
1t is this condition. in conjunction
with tho lcsscninE OF extravaganza in
personal expenditures, and the grow
ing opposition TO extreme prices. that
is prompting merchants to proceed
cautiously in anticipating forward re-
uuircmcnts. Whether the high costs
of production. and the limitation OF
available supplies through decrease
in outputs. will operate to maintain
prices. as is contcnded by some in
terests, will depend upon the future
purchasing ability and disposition or
consumers.