New-York tribune., 1921-02-28

Slowly and painfully, with haiting
steps, business continues to break its
way through the many obstacles in its
path to a new normal basis, Negative
developments in some lines last week
indicated what may be expected before
the road is fully travelled and business
is out Of the woods.
February usually is dull month in
the textile and apparel trades, fact
that was lost to the sight Of many in
the fever of high speed business in
1919 and early 1920. Comparisons with
last year, then, mean but little in try
ing to gauge how far business has pro-
grcssed from the low point of the clos
ing months of 1920 to what may be
considered new normal status.
One of the facts that is being borne
in on domestic manufacturers and dis
tributors is the tremendous importance
of our foreign trade situation and its
bearing on our production and prices.
Those who have not been engaged in
manufacturing for the export field or
in importing foreign products now feel
that until there is more stability in
foreign countries, with a consequent
ability to figure out what American
products can 20 abroad and how much,
and what we can draw from other
countries and at what prices, condi-
tions here must be more or less un-
settled. The progress made in tariff
Legislation so far has had little effect
upon any of the commodities that come
Within the scope of the proposed tariff
measures.
AS yet retailers have not been faced
with the necessity of abandoning their
policy Of depending on the stocks of
goods already manufactured for their
requirements, except in a few cases.
Orders at the outside do not extend
beyond the siXty-day period, and that
limit is reached only in seasohable
merchandise.
Many retailers state that they have
completed their initial spring pur-
chases and will be out of the market
until the temper of the buying public
IS displayed when spring retail selling
begins. The ice already has been
broken in women's wearing apparel
with fair results. The best moving
stock in this line appears to be
dresses. As result some of the local
cloak and suit and waist manufactur-
ers have added the production of
dresses to their activities.
Despite the slowness with which
trade IS recovering, pessimism regard
ing the future has been pretty we'll
eliminated. 1t is felt. that the worst
has passed, especially in the financial
and credit lines, and that improvement
lies ahead. One of the features that
indicates better feeling is the con-
structlve plans that many concerns
are now developing. The passive atti-
tude is passing and many manufacture
ers and traders who in the closing
months of last year allowed matters to
drift are now making active efforts TO
secure new business.
Efforts to adjust cost prices to values
mat ultimate consumers are setting on
goods are taking the course of reduc-
ing costs rather than trying to readiust
the consumers price ideas. In this
connection the lowering of wage scales
IS playing an important part. Reduc-
tions Of from 5 to 33 1-3 per cent in
the wage scales of several industries
during January were noted in the
wage report issued by the New York /
State Industrial Commission last week. |
with predictions that the wage scale
will continue to show a decline.
Retail business in general showed
little change during the week. The
colder weather prevalent in the Central
and Eastern sections of the country
stimulated the demand for winter
goods and retarded the purchasing Of
spring, merchandise by consumers.
According to reports from local re-
tallers, business is good, largely stimu-
lated by lower prices, especially on
house furnishings, floor coverings and
some OF the other articles that here
totore were not stressed in advertised
reductions.
On the subject of advertising it is
telt that announced cuts from former
nlgh Prices are losing their effect as
sales stimulants. The public has he
come used to lower price level. and
many, retailers are now centering their
attacks on the public on the basis of
quailty and style rather than upon
mere cheapness of prices.