New-York tribune., 1921-01-21
Movements Tending to Bring
Return of Speculation De-
nounced at Convention:
Buyers Strike Not Over

on broader scale than during the last
few months, are, nevertheless, firmly
set against price advances. This i'm
portant topic aroused much discussion
yesterday at, the seventeenth annual
convention of the National Wholesale
Dry Goods Association at the WAL
dorf-Astoria. Many Of the jobbers ex-
pressed themselves as opposed to price
advances in cottons, woolens or silks,
at present, and an effort was made to
have the convention 60 on record as
holding this opinion. This was ac-
compllshed 10 certain extent by the
ratification of resolution adopted by
the dress fabric buyers at a meeting
earlier in the week which deprecated
price advances as likely to lead to a
renewal Of speculation.
nor, of the Richmond (Va.) Dry Goods
Company, said: eve must guard
against price advances which are likely
to meet with new opposition from the
public. The purchasing power of the
people certainly is not above SO to
100 per cent more than it was in pre-
war days. In addition to this our for
elgn markets are closed to US. The
American public cannot pay higher
y.
This thought was echoed by Charles
Sanger, Of Sanger Brothers, Dallas,
Tex, who asserted that price advances
will kill the consumers desire to buy,
which has just reappeared. "The buy
ers' strike" he said 'sis not yet over"
Other jobbers concurred in this view.
W. f. Dalzell, of the Pittsburgh Dry
Goods Company, in making his report
on the meeting between special COM
WI $fnn Of
ton goods commission merchants, which
resulted in a general market move to
new price levels on an "irreducibe
minimum" the first Of the year, asserted
that the leading commission houses
were not in favor of price advances
1T present. but that prevailing prices
appeared to be as low as could be made
for the spring season and that jobbers
were safe in operating upon this basis.
Price rebounds from present levels
would not alarm the Federal Reserve
Board, according to Pierre JAY. Fed
eral Reserve agent for New York, who
explained the reserve system and it's
working for the benefit of the dry
goods jobbers. Mr.. Jay, in reply to
questions at the end of his address, in
tintated that the banks would desire
the reduction of heavy inventories and
that if slightly higher prices would en-
aoie business men to unload stocks of
goods without further loss such a
course is much to be desired"
Mr.. Jay made it clear that the Fed
eral Reserve Board was not primarily
interested in prices, and was not re-
sponsible for the fall in prices last
year, despite criticism along this line.
The function of the board, he said, "is
to keep credit sound and elastic. Eff
fects on prices indirectly result from
this action, however"
THE fact that raw materials, and
not finished products led in the price
Decline" he said, "makes for a sound
cation that raw material prices have
reached an equilibrium for the time
being. Further reductions in the prices
OF manufactured goods may be expect
ed, but are likely to be slow in
process. They will come through an
increased efficiency in labor, the intro
duction of more labor saving machin-
cry, and lower wages" Too much i'm
portance should not be attached to the
last factor, he said
From our experience after the Civil
War" continued Mr.. Jay, 1--WE may look
forward to period of ups and downs,
with gradual downward tendency in
prices. There will be good years and
bad years" '
He asserted that the credit position of
the country at the opening of 1921 was
stronger than at the opening of 1920.
There Will be ample credit this year."
ne said, for legitimate business use.
The banks have acted wisely in not
forcing many people to the wall who
were caught with large stocks during
the downward price movement. The
volume of failures at present Is only
about normal, compared to our pre-
war years"
President NJ. G. Cooper of the Cooper,
Coates e. Casey Dry Goods Company.
OF Los Angeles, in opening the conven-
tion called for an abandonment of un
due pessmism. 81 suggest" he said,
the urgent demand for farsightedness
on the part of our mem bers."
Resolutions passed by the convention
included the recommendation that indi-
vidual members establish bureaus for
the study, compilation and analysis of
returned goods by customers, prepara-
tory to the establishment of a general
bureau by the association, the approval
Of the nation wide movement to pre-
vent cancellations and the continuance
Of the associations efforts to establish
the principle that price adjustment
stops w.th the shipment Of goods to
customer and that no rebates shall be
made after such shipment.
All the officers Of the association
were reelected for the ensuing year.
They are:
M. G.. Cooper, Cooper, Coates &
Casey Dry Goods Company, Los An
geles, president; F. II. Lloyd, Pitts
burgh Dry Goods Company, first vice.
president; James Wilson, Clawson &
Wilson Company, Buffalo, second vice
pres dent; Thomas A. Fernley, Phila-
delphia, secretary and T.
James Fernley, Philadelphia, advisory