New-York tribune., 1921-11-21

xAoHpeSuif CcUSlQeTaDle p0rti0n
OF the falling off in trade is due to
the drawing to close of winter sea-
sonal buying by retailers and whole
saiers and desire among the latter
TO close the year with light inven-
torres, Banking pressure is said to be
bringing about the latter development
The week was featured by further
easing in money rates. Commercial
money, particularly in the East, ap-
pears TO be in plentiful supply, largely
according to bankers because of the
sub-normal state OF trade. Manufac-
turers and merchants, having lioui-
dated their old stocks and finding the
new level of business insufficient to
use up their surplus capital, are putting
their unused funds into short term
commercial paper in many cases.
The retail trade is still hampered by
unreasonable weather and reduction
sales on mems clothing and shoes be-
came more prevalent during the week.
The strike in the clnak and suit trade,
although so far failing to create q snort
age Of merchandise, is influencing re-
tailers TO be less anxious to reduce
prices on current stocks. Retailers,
while not yet fearful of a shortage,
were reported to have been slightly
mere active in the apparel market last
week than the week before. However,
the clothing markets in general are
decidedly more quiet than is usual at
this time of the year.
The drive for cheaper merchandise
continues, and in the apparel and shoe
trades there is strong tendency to
meet the demand for lower prices by
using lower quality raw materials.
Manufacturers are predicting a public
reaction against the great quantity of
low quality merchandise now on the
market. The experience of retailers in
handling variously priced merchandise
differs considerably. In the main it ap-
pears that both extremes of quality are
moving better than medium grades.
Travelling statesmen returning from
their trips through the country report
that retailers in the West are buying
sparingly because of the sharp drop in
buying from the farmer trade, in turn
the result Of the long continued low
prices for agricultural products. The
recent downward reaction in cotton
also Is said to have taken away much
of the optimism prevalent in Southern
retail circles month ago.
In general the Conference on the
Limitation of Armament and the reduc-
tion in railroad freight rates are ex-
pected to exert broadening influence
on trade. The building trades also ap-
pear to be more active than was indi-
Gated earlier in the year and the roper
cussion to this may be felt by general
business lines later.
Taxes and revenue continue to be
much discussed in business circles, and
the effect of the new tariff bill, if it is
enacted, including the American valua-
tion plan, is leading topic of con-
versation. Opinion is SO sharply and
almost evenly divided on the question
of American valuation that it is impos-
sible to draw any definite conclusions
concerning its possible effect at this
time. At conference Of representa-
tives Of manufacturers associations in
New York last week plans were laid for
gigantic convention of manufacturers
in the near future to arouse sentiment
in favor Of the American valuation
plan. Opponents of the plan so far
have apparently made more Of a case
with the general public than have it's
proponents.
On the question of taxation there Is
a general sentiment in favor of reduc-
tion and a widespread belief that
heavy taxes are to great extent re-
tarding business development.