ECONOMIC PROBLEMS

Otago Daily Times, Issue 17941, 21 May 1920, Page 5

ECONOMIC PROBLEMS

PRICE CUTTING IN AMERICA. Pxeaa Association—By TfelegTaph—Copyright. NEW YORK, May 19. In connection with the reduction in prices, the newspapers are filled with advertisements of special sales. The reasons given are the slow spring season, that the public is doing little purchasing, leaving merchants stocked up, and the tight condition of the money market. Whether lower prices have arrived permanently is another question. A leading Chicago merchant states that the reductions are intended to satisfy the hysterical public demand for lower prices. There has been a general decline in stocks in Wall Street, and further extensive selling of Liberty bonds at low levels. Sales before noon approximated £4,000,000 at par.—A. and N.Z. Cable. WHOLESALE MERCHANTS PERTURBED. NEW YORK, May 20. (Received May 20,, at 11.30 p.m.) A wave of price-slashing is sweeping l the country, the re3nctions being chiefly in men's and women's wearing apparel. Many other manufacturers are following suit. The banks have notified the makers of non-essential articles that they will receive only very limited financial accommodation. The bonds and commodity markets are highly nervous and have sagged heavily. Wholesale merchants assert that the move cannot be maintained.—A. and N.Z. Cable.

SPECULATING IN FOODSTUFFS. • CONGRESSIONAL ACTION EXPECTED. • ' WASHINGTON, May 19. Governor Harding,'of the Federal Reserve Bank Board, recommends all banks to liquefy all credit extensions which are permitting large stocks of merchandise to be held for speculative purposes. Congressional action is expected, with a view to driving foodstuffs from storage—A. and N.Z. Cable.

WORLD'S WHEAT SHORTAGE. PRICES AT A HIGH LEVEL. DIFFICULT PERIODS AHEAD. LONDON, May 19. (Received May 20, at 7.40 p.m.) The Food Controller, speaking at London, said that before the abolition of food control could be secm-ed difficult periods must be passed. At the present moment the average prices of foodstuffs in Britain were at the highest point since the outbreak of war, and in consequence the National Warn Bill had increased in two years by £500,000,000. The world's prospective wheat crops were causing every Government in the "world the greatest anxiety. Substantial decroases were reported from North America, Australia, and the Argentine, and the last-named was considering the necessity of prohibiting .the export of wheat. Only the Indian crop showed a surplus, but it was insufficient 'to balance the shortage from other sources. It was quite possible that people in Britain would eat bread of the quality which was only procurable during the most difficult period of the war. He urged the people to eat New Zealand mutton, and thereby save their flour and bread.—-A. and N.Z. Cable and Reuter.