The Washington herald., 1920-05-24
TRADE REVIEW
ANDOUTLOOK
General Price Cutting Fea-
lures Last Week S De-
velopments.
EXPORTS ARE REDUCED
Whole Situation Governed
By Drastic Methods Of
Defation.
EXPORTS ARE REDUCED

That price considerations have be-
come the dominant factor in the
economic situation. with a more
general influence on business SEN
timent the events of the week have
demonstrated. While reaction from
the greatly advanced prices has
been long delayed, and even now Is
conspicuously absent in various
quarters, the movement toward de-
fation has recently made such
progress in some lines as to leave
no doubt as to its meaning. though
the probable duration and extent
of the readjustment remains a
matter of uncertainty. The COM
pelling reasons for the reversal OF
conditions, which is most sharply
defined in retail channels, have not
been of sudden development, but
for some time past have been man.
ifested in consumers increasing
opposition to the extreme prices, in
the accumulation of some goods be-
cause of the backward spring sea-
son. and in the financial pressure
that has resulted partly from the
serious congestion in transporta-
tiOn. which is aggravated by the
harbor trouble at New York city.
Contributing causes have appeared
in the narrowing of the dispropor-
ton between merchandise exports
and imports, with resales here of
Ssome commodities previously taken
for foreign shipment, and the cur
tailment OF manufacturing from
strikes and other drawbacks has
operated to diminish the public
purchasing power. With such
nh ~
loans less easy to negotiate and
credits subject to closer scrutiny,
the policy of many buyers Is more
than ever one of limiting commit
ments to immediate requirements,
and of deferring future engage
ments as far as possible, in the eN-
pectation that the price declines
will be extended. While the reduc-
tions have thus far been most ap-
parent in retail circles, where
special sales are being featured
practically the country over. some
wholesale markets lose much of
their buoyancy as competitive bid
ding for supplies slackens. and
speculative tendencies are discour-
aged by tightening of money mar
kets. and Dun's list Of quotations
this week discloses more recessions
than advances. The prevailing con-
ditiOns in business find reflection in
rather more complaint of hardness
in collections, and in a trend toward
increase in failures as in some sec
tions; but the commercial mortality
is still notably moderate, and bank
clearings continue of record mag
nitude for the period.
Merchandise Export Excess Reduced.
The narrowing of the excess OIL
domestic merchandise exports over
imports, which has been a feature
Of this years foreign trade returns.
again finds reflection in the official
statistics for April As reported
from Washington on Thursday. last
months shipments of goods out of
the country reached a valuation. in
round figures, of s6s4, 900. 900. while
the imports during the same period
approximated $45, 900. 900. 1t thus is
shown that the April exports sur
passed the imports By S1S9,000. 900.
whereas in March of this year, when
the merchandise outgo was $780,
100000 and the imports $524, 900. 900.
the export excess was S296.000, 900.
More than this. the April exports
are $31. 900, 900 below the y$715.000,-
900 Of that month last year, and the
imports run S222, 900. 900. or fully. 80
per cent, beyond the $273. 900, 900 of
April, 1918. Such a tendency in the
nations overseas commerce, If con-
tinued, can hardly fail to make an
impression on prices here, and there
is evidence now that re-offerinRs of
goods previously bought for ship
ment abroad are not without de-
pressin effect on some domestic
markets. y
Dry Goods Concessions Mt Retail.
Hesitation in primary textile
markets has been intensified by the
price reVisiOns at retail, which have
become very general, and it is prob
able that the end of the readJust-
msnt within the trade has not yet
been witnessed. Distribution to
consumers has increased. but only
because department stores and other
retailers have made substantial con-
kcessions to stimulate buying, some
interests offering no profit" sales.
and others announcing 20 per cent
reductions. The turn in conditions
attracted wide attention this week.
but indications that a change was
impending were apparent some
time ago, and reasons for it have
been clearly discernible in buyers
in the backward spring weather.
the transportation congestion. and
in financial pressure. The enlarg-
ing imports of textiles, moreover.
have been no small factor in the
present situation. From the manu-
featuring standpoint, conditions
present considerable irregularity: a
Is per cent wage advance will be-
come effective in various cotton and
wooden mills on June 1, but idleness
Is spreading in the clothing and
garment industries. as well as in
the silk producing districts.
Hide and Leather Prices Weaken,
With sizable business lacking. it
is difficult to quote hide and leather
prices, but there is no mistaking the
easier undertone of the markets
where supplies are well cleaned up,
sellers are still more or less inde-
PENDENT on the price question. but
this condition remains the excep-
tfon and buyers have recently found
the situation turning strongly in
their favor One of the features in
| the leather trade, and one which
has had much to do with weakening
| prices, is the re-offering Of stock
here that was previously purchased
for export. Some leather is re-
ported to have even been shipped
20 France and then returned here
Nor disposal, and the new parcels
that seem to be coming out almost
every day are competing with the
fresh output of tanneries. The
price yielding. moreover. is not con-
Hued to hides and leather for sipoi-