New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-22
New York and Chicago
Markets Hit by Decline
in All Staple Lines:
Sugar First to Yield
Merchandise Cuts
Halt Temporarily
Retailers Here Assert
Reductions Indicate Re-
turn of Normal Times

impressive among InS QcNelOp-
ments in the price situation yester-
day was the break in food prices
which featured the wholesale mar
kets in New York and Chicago.
Prices of staple foodstuffs hitherto
have not only resisted the marked
downward trend in ether lines of
merchandise, but in some Instances
have registered advances. Prices
yesterday on the cereal and provision
markets suffered sharp declines.
Pork quotations developed the first
general drop of many weeks and
sugar broke one cent pound, the
maximum drop permitted in one
days trading under existing regu-
lations.
The principal aim of the general re-
ductions in dry goods-to get timid
purchasers to shed at least a degree
OF their timidity-havtne been accom-
plished, the wave of p-ice slashing in
the retail dry goods trade seems to
have halted, at least temporarily. This
view. is sustained by the opinions of
leading retailers.
Wholesale Prices Drop
The wholesale markets yesterday dis
played general disposition to lower
levels A large part of the day. iou;-
datlon IN cotton and grains was attlib-
uted to the further scaling down Of
credits by banking ins'itn'lors mere
ana IN other
IN conformity with the eeaneat Of the
Federal Reserve Boar
In the local cotton market May CON
tracts broke almost 400 points with
equally sharp reactions IN New O.,anns
The Liverpool market also reported
subs 5antial reactions.
Domestic and foreign. m staI markets
quGteo lower pcioes for spot ind future
deliveries, silver proving the OILY ex
cception at a slight rise In Londor
Little business was done hare In eappar
for immediate delivery.
Significant feature sk the stook
market was the steady gain :~s;srere.i
by all Liberty bond issues, which ne
their early gains to the close Of tn
market.
The uptown banks, which transsc.
the bulk OF the financing Of the big
and little stores of the retail, dryroods
section, reported q general and con
tlnuing tendency toward loan contrac-
tions.
Practically every store in the city
big and little, is adverta4ing specia
cuts in certain lines, but ae dispssi
ton to make reductions in ali linsa is
still confined to one or two Of che
larger stores.
Movement Overestimatcd
Retailers, when they can be per-
suaded to talk for publication. egree
that there is certain disposition on
the part of the public to overesumate
the extent of the present reductions,
and it is repeatedly emphasized that
with one or two notable exceptions
there have been no drasric cuts In the
prices of staple articles.
On the other hand, It is also the
prevailing opinion that there mas been
for some months past a dangerous dis
position on the part of most reisilers
to specialize on accU.na lating sIosns
OF the most expensive .dXurlce, And it
Is generally conceded ,hat tue retail
prices of such article, as elk hosiery.
silk shirts and dresses, silk dnXerweer
and lingerie, imported hats and cos
tunes may well be general, reduced
without any disturbance oe G1e normal
trade of the country.
This movement toward the ultimate
curtailing Of luxury production is re-
garded by most leading business men
as sound development looking toward
a return to normal trade conditions.
ID. A. Saks, president of the Retail
Dry Goods Association, said yesterday
that he thought the general rate of
price cutting averaged about 15 per
cent. He added that it was probable
that prices would remain at about this
level for some time.
This is a sane and normal move
ment toward sane and normal condt-
tions," Mr.. Saks said. The general re-
duction at the present represents ap-
rroxlmately the amount OF the infla-
tlon IN certain lines. Prccs are not
gong to come down just because peo-
pie want them to come down. The real
remedy lies in more production.
think this tendency toward reducing
the imitation is just one of the signs
that the war emotic nalism which sent
Us all up in tee clouos ID passing
away.
1T is evident that we are coming
back to earth. Honest work, more pro
ouction, and consequently more com
petition, Will result in a permanent
softening of prices, which may amount
to an average of Is per cent"
Caravans View Different
This view is opposed by Assistant
Attorney General Garvan. who insisted
yesterday that the real reason for price
reduction was found in the fact that
people refuse to buy goods priced ex-
brilliantly, plus the unexpected &C
tivity of the Department of Justices
profteering squad.
Mr.. Garvan said the general reduc-
tions had been caused by fear that
the government agents might beat the
storekeeper to it," and he added that
the reductions already announced
merely indicated the extent to which
gross profiteering had been rampant in
the retail trade.
The Assistant Attorney General
charged that the Retail Drygoods AS
sociation Is conducting a vigorous
campaign for the Knox peace resolu-
ton, IN the hope that the war powers
which have strengthened the Depart
ment of Justice men in their campaign
may be removed.
"In which case" he said, prices may
be expected to climb again.
HALF \ dozen large storss sspsxest