AMERICAN MARKETS.

Lyttelton Times, Volume CXVIII, Issue 18439, 19 June 1920, Page 12

AMERICAN MARKETS.

THE DROP IN PRICES. Price* foil all over Now York on May 9 as a result of tho sensational announcement that the great Wauaniaker'a stores in New York and Philadelphia would knock 20 per cent off tho price of every articlo in stock as a deliberate attack on tho present inflated values says the American correspondent of tho Wellington "Post." There was such a rush to cancel clothing ordera that some of the smaller woollen mills report cancellations amounting to more than 00 por cent. All stores dealing in olothing reportod an extraordinary drop in patronage The people stoppod buying olothes, or, at least, postponed doing bo, in the expectation of a drop In prices. The drop was regarded as cortain to come, if for no other reason, because the British Government expocted to release an enormous amount of Australian wool on July 1. It is claimed that tho ovorall movement had nothing to do with the fall in prices. That campaign was confined to notoriety seekers, and resulted only in making overalls higher for those who had to wear them. They are still in use in tho west, hewover, though not to the extent that formerly prevailed. The most sensational drop was in furs, which registered a decline fron 13 to 50 per cent. The fur trado is forced to the conclusion that tho craze is over. There is no evidence of rents coming down in New York but uaoasiness is manifested all through the real ostato market. It is thought this summer will see the Inst of the extortionate prices. It is regarded by influential financial men as certain that hard tirrea are coming and that they will arrive this autumn with a fall in prices and wages. In the past few days reports have come from all parts of tho United States announcing price reductions on practically all olasses oi goods, with the usual exception of foodstuffs, of from 210 to 50 per cent. Even dentists in Omaha reduced prices 25 per cent. Speotaou* lar breaks also took place in tho pxioe of cotton, lumber and corn.. STRIKES REDUCING- PRODUCTION. " America ia in as bad a way as Britain, so far as production ia concerned," eaid Mr A. Burt of A. and T. Burt, Ltd., on his arrival by the Niagara from Vancouver recently, according to the Auckland oorrosponacnt of tho Wellington Pest," " My opinion is that Britain will recover moro quickly than America. So far as iron and stocl material goes-—such as bars, sheets, plates and wire—you cannot get a quotation because it is lot procurable in the States at present." There wero, however, many HllO3 of manufactured gcods that Americans were ready to supply. The whole cause of the shortage of raw matorial was strikes. " My experience," he said, " wa3 that strikes are ivorso'in America, than they are in Britain." Conditions in London, stated Mr Burt, were improving wonderfully, and ho had been ntlo 10 placo far more buf-inoss in Britain and just before he left supplies of Taw fcteel materials were increasing. He had visited large steed and engineering works :'n England and Scotland during the ton months he waa abrent from New Zealand, and ho hud been assured by the management of these works that thay shonld recover themselves in about two years. Everything win in readiness lor comal working, and in about two yenrs tho output of many lines should be considerably greater than it was in pre-war days. Tiio construction of vessels on the Clyde at progent was tremendous. He had spent threeafternoons there. Every yard was full cl work; tho only difficulty was in getting themen. A great many tradesmen in the engineering business wanted to come to New 7-fti-lar.d. When ho left liondon he was told by tho High Commissioner's Office that there wero passengers of this class waiting for ships six months ahead Mr Burt said ho had 1 been asked to induce ni many men as ho could to come, to New Zealand for engineering work, MOVEMENT BACK TO NORMAL. Tho Guarantee Trust Company of Now York* in its report iox May 14, eays that there is a general feeling that tho series of price reductions sporadically announced iu various parts of the country indicates the imniinenoe oi a movement that will cairy businoas back to normal conditions. Buying is being curtailed and merchants who aro overstocked" are beginning to unload at reductions ranging up to SO por cent, many of them finding that a quick turnover rwrults, iwd their net profits are maintained. The quirk r«sponso of buyers to .seduced prices ia auQlcient sruarantee ajjainjut

any violent readjustment. Tho determination to economise is tempered by a Gradually widening understanding of tho causes of present price levels. The public is apparently tolerant of very high prices so long as thero is convincing evidence of a bona, iido attempt to reduce them. There is no discoverable antipathy to business as such, but tho ioelin<' against unconscionable profiteering and speculation in nocessaries is deepening. These favourable factors in the situation aro offset to a largo extent by the continuing shortage of transportation facilities. There is congestion at all distribution centres and this is likely to continue until tho spring movement of crops ,for which cars aro being allocated to the Southwest and Northwest, is ocmpleted.