HOARDING GOODS.

Auckland Star, Volume LXIV, Issue 190, 14 August 1933, Page 5

HOARDING GOODS.

FOR RISE IN PRICES.

ROOSEVELT'S WORK HINDERED

a SELLERS IN NO HURRY." (From Our Own Correspondent.) SAN FKANCISCO, July 25. Commodity hoarding threatens the commercial and industrial recovery of the United States, according to Mr. Louis E. Kiretein, who spoke not as a member of the National Industrial Recovery Act administration, but strictly a sa merchant who had become alarmed at what is happening in the United States. He is vice-president of a great Boston department store.

"Everywhere manufacturers, contrac- i tors, jobbers, and merchants appear to be piling up merchandise against the expected rise in prices," he said in New York. "I know of woollen mills that are running 24 hours a day in a breakneck attempt'to produce as much cloth as possible under the present cost of wool and labour before minimum wages must be raised under the Recovery Act. I am sure you would find the practice rather widespread. Meanwhile garment manufacturers seem' to be converting the cloth into garments as fast as possible, and jobbers seem to be stacking their warehouses to the limit. The purpose of all this is to get as much merchandise on hand as possible before the Recovery Act goes into effect. "The game is to hoard up merchandise at present low prices, so that it can be unloaded at the advanced prices the Government is seeking to bring about eventually. I don't think the game will work. I think it will not only ruin some who are playing it, but will impede the industrial. recovery - which all of us want." "Who Will Pay the Prices?" Mr. Kirstein frowned in a puzzled fashion and added: "The Recovery Act is designed to produce more work at higher wages. If manufacturers rush ;to°secure over-production before the Act;

takes effect it seems to me there will be less work, instead of more, when the new wage and time schedules go into effect. Beyond that, as a practical merchant, I wonder who is going to pay the increased prices which are already apparent in every line.

"The truth is that the manufacturers, the wholesalers, the jobbers, do not want to sell at the low prices which have been in effect during recent months, and which were supposed to hold until the administration in Washington had managed to increase wages so as to restore the nation's buying power. Some of the manufacturers would rather hold their merchandise than sell it now. Some have already boosted their prices on present stocks, others have virtually withdrawn their lines.

"We are fast approaching a sellers' market. The town is filled with buyers from all over the country, and the sellers are in no hurry to sell unless buyers are willing to pay prices that are not justified by national conditions. There are still twelve to fifteen million Americans out of work. Until they are got back to work, ■who eventually is going to pay these increased prices that are now being demanded?" Prices Steadily Rising. Mr. Kirstein called in several of his buyers to substantiate his statement that prices are steadily rising. One buyer pointed out that a Hudson, seal coat which sold for 138 dollars retail last winter will have to' - be marked up to 169.50 dollars this winter; that a 59.50 dollar muskrat coat will have to be marked up to 75 dollars. Another said he was informed that a 00 cent shirt would have to be sold at a dollar in the autumn, and a dollar shirt for two dollars. "Who is going to pay these increased retail prices ?" demanded Mr. Kirstein. "Our store, for one, is not going to get caught. We want increased prices, but we are not stocking up at the_ already advanced prices in fear that prices will go higher. We are going to buy as we «o aloV. Other large firms, which stand between the manufacturers and the wholesalers, are doing the same. are not the only smart ones in the country, you can depend on that. Smaller retailers do seem to be stocking up however. Everybody who does not think is stocking up. There is going to be so darned much stuff in stock that they woift bo able to give it away." • : ' •