PRICES IN AMERICA

Greymouth Evening Star, 14 August 1920, Page 6

PRICES IN AMERICA

A GENERAL DECLINE

INCREASING UNEMPLOYMENT.

CLOTHING CHEAPER, Further reports of a decline mi prices have been received from the United States by the last mail. Writing on July Bth, Messrs John Dunn, Son and Company, of New York, state that the general business situation seems little changed from month ago. In certain lines a revy decided hesitation is apparent. Clothing,, shoes, silks, woollen goods <-.:iu many articles of luxury are lower in price and mills and factories engaged in the manufacture of such goods are running on part time or closed for vacations and repairs. Business as a whole, however, is active and the transportation facilities continue be severely taxed to meet the uemands for movement of freight and passengers. STRAIN ON BANKING- SYSTEM. The banking system of the country is feeling the strain of the enormous demands made upon it, but commercial failures are few, and small as to the amount of liabilities. As to the future many feel that a gradual return to more normal conditions is under way, while others expect prices to continue .until a sharp break cjims. They feel that no radical reduction in prices is possible while the present scale of wages and the present cost of fuel continue, and it is true that there is a noticeable tendency among manufacturers to reduce or even stop production instead of lowering prices. Recent declines in the prices of a few commodities are not to be regarded as isolated instances, but are part of a gradual and general movement that has been under way for a considerable time. The National Bank of Commerce in New York says, in a discussion of business conditions, that a general decline in the price of basic commodities is now clearly evident.

UNEMPLOYMENT AND PRODUCTION.

Despite numerous and widespread complaints as to the unsatisfactory condition of production in the United States, the fact remains that production has been gradually filling up the gap between demand and supply, not only in the United Suites but in ewry country except those yut in a state of disorder. A factor not to be overlooked is the increasing unemployment. In some districts large numbers of men aiv out of work as a result of diserganised transportation. This effect has been especially noteworthy in the coal regions and in the great centres of automobile manufacture. Refusal of the public to accept increased prices, or even to maintain a volume of purchase equal to that of recent months at the level of prices then prevailing , has reacted, sharply on sections of the textile industry and on the garment trades. Considerable unemployment in these industries '•as resulted. Tf this is of brief dura tion, it need have no serious effec.s, but prolonged and widespread unemployment rapidly destroys buying power and produces ttnres:.