New-York tribune., 1921-07-31
August Sales
To Set Test
For Qlr Trade
Skin Dealers and Manlafac-
tglrers Believe Consumer
IL Being offered Big Bar
gains i'm Sale This Year
Report 500 Price Drop
Supply Of Fresh Skins Cat
in Half by the Low Prices
the 'l'rappers Are Offered

-A A price decline? A great many
dealers in furs feel that they have.
Others are not 50 sure. and all Of
them feel that t'c situation is still
surrounded with enough uncer-
tainty to make the most cautious
dealing the wisest policy.
The test will come next month In
fact it already has begun, but has not
progressed sufficiently to give the
members of this great industry which
made rapid strides during the way,
when foreign furs, foreign dressing
and dyeing and foreign styles were
| eliminated and the American trade was
forced to develop along native and
fuls, in their SO per cent drop from
the peak price of late 1919 and early
1920 have arrived at basis on which
"safe' trading may be done will be
revealed when the final reports of the
success or failure of the August fur
sales are tabulated.
In keeping with the development of
schemes to stimulate retail business in
dull seasons, the August fur sales
were originated about six years ago
Since then they have given a fairly
accurate forecast of what might be
expected by the fur trade during the
normal winter selling season, so far
as consumer attitude toward styles
and prices were concerned.
Eotv Price 5geducomegaf
Last year the August sales were
conducted while the fur trade was in
the throes OF the sharpest and deep
est price decline it ever has known
Tbc \,
to buy furs in August, when she will
not be able to use them until month
or two later-and in the case of heavy
coats and wraps until three or posi-
bly, four months afterward-is low
price, or at least price which is con-
siderably under what the same gar
n,cnts would cost her during the
normal season. AS result of the
continued price decline last year, No
vember and Dece mber price levels
were considerably under those quoted
IN August. Some stores which had
guaranteed prices against declines
were forced to make rebates which
swept away all profit and actually
netted a loss Other stores which had
not guaranteed prices were faced with
demands for rebates from irate Gus
toners and forced to choose between
making refunds or losing some of
their established trade. One large de-
partment store in Chicago is said to
have lost so heavily in its August fur
sales last year that the financial stand
ing of the entire store was threatened.
This year the fur retailers are enter
ing the August fur sale with a certain
amount of fear and trepdation, not
that they are fearing another decline
in values, but because of the possi-
bllity that Mrs. Consumer is bit
gun shy after her experience of last
year The retailers admit that it will
be difficult to convince the women of
The country that fur will be offered
them in August cheaper than they will |
be three or four months later. Many
OF them are attempting the task. |
others won't even try. A few have
'beat the gun" and their competitors 1
by running the midsummer fur selling
event this month. Reports from these |
early sales are so conflicting that the |
trade has learned little or nothing /
from them. For every store reporting |
q good business at such a sale another I
store registers minimum of response |
on the part of the public.
Putting aside the uncertain elements
that enter into making demand for
fur garments, the dealers are working
W n quantities which are more definite. 7
Prices of raw furs in general are about /
half of what they were little over q
year ago. The supply of raw furs also /
has been cut in two, largely because
trapping was discouraged last winter
when collectors cut their prices for
fresh skins One of the largest raw
fur dealers in this city, who maintains
trading posts throughout the Western
section of the United States and in
British Columbia, Alaska and Labra
dor, reports the receipts Of fresh furs
at these posts running fully so per cent
under those OF the spring and summer
of 1919, when fur prices were at their
peak.
f Financial Blows
The fur trade has had some stiff
financial blows. Several raw skin
firms went to the wall in the crash.
Manufacturing furriers who were over
extended followed suit But the fail
ures were mainly among the new
comers attracted to the trade by it's
speculative possibilities, and the rec
ord oil financial crashes is regarded as
evidence Of good "house cleaning"
by the old established dealers. The
fur trade. more than most other indus
tries, had been conducted on an ex-
tremely liberal credit basis, and this
added to the difficulties when values
began their swift slide downward.
The trade now feels that the worst
is over, although the big dealers are
still carrying n heavy financial burden
III the way of unpaid credit among the
smaller dealers and some of the manu-
featuring firms. A few of the latter
are expected to give up the struggle
in the near future. Manufacturers, in
the main, carried over fairly large
stocks from last year, some of which
were paid for and some not which are
now being made up for the start of
the new season. They are not in
mood to load up" on the raw mate
rails of their trade until consuming
capacity and attitude toward prices are
more defined than at present
Despite the general decreased supply
OF furs, one large accumulation is
overhanging the market The Inter
national Fur Exchange in st. Louis.
winch rose to a place of eminence in
the fur auction world in a few Years
only to go down in the crash Of fur
values, still has about 50 500 600 worth
OF skins on hand which may be thrown
on the market this fall. Whether these
lars will be offered to the trade at
public auction rests with the com
mttee of bankers into whose hands the
affairs of the company were thrown
some time ago.
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