LOWER PRICES IN U.S.A.

Evening Post, Volume XCIX, Issue 120, 21 May 1920, Page 7

LOWER PRICES IN U.S.A.

COMMENTS OTs THE CHANGE.

(RSUTER'3 TELBfISAJI.)

* NEW YORK, 19fch May.

In connection with the reduction of prices, the newspapers' are filled with, advertisements regarding special 6ales. The reasons given are the slow spring season; the fact that the public is doing little purchasing, leaving merchants stocked up; and the tight condition of the money market. Whether the lower prices have arrived permanently is a question. Leading Chicago merchants state that the reductions are intended to" satisfy the hysterical public demand for lower prices. There haa been a general decline in stocks in Wall-street, and a, further extensive selling of Liberty bonds at low levels.. The sales before noon approximated four millions sterling at par. ' Mr. W. P. G. Harding, governor of the Federal Bank Board, recommends all banks ta liquefy all credit extensions whioh are permitting large stocks of merchandise to be held for speculative purposes.. Action .by is expected with a view to driving foodstuffs from 6torage.

[A message from New Tflork published yesterday stated that thirty-four cities throughout the country." reported that prioe-cutting was going on to the extent of 20 to 50 per cent, of all merchandise, even including automobiles, and was resulting in a considerable reduction in the cost of living. Freight congestion, tight: money, and lessened buying were assigned as the caußee.for the reduction.] .