SLASHING THE PRICES.

Poverty Bay Herald, Volume XLVII, Issue 15222, 21 May 1920, Page 3

SLASHING THE PRICES.

CHEAPER GOODS IN AMERICA. WAVE SWEEPS THE COUNTRY. (Elec. Tel.. Copyright— United. Press Assn.) 'Australian and N.Z. Cable Association.' NEW YORK, May 19. In connection with the reduction m prices, newspapers are filled) with advertisements of special sales. The reasons given are the slow spring season, the public doing little purchasing, and leaving merchants stocked up, and the tight condition of the money market. Whether the low prices have arrived permanently is a question. A leading Chicago merchant states that the ■restrictions are intended to satisfy the hysterical public demand for lower prices. M There has been a general decline m stock m Wall street, and a further extensive selling of Liberty bonds at low levels. Sales before noon approximated four millions sterling at par. WASHINGTON, May 19, Governor .Harding, of the Federal Reserve Bank Board, recommends all banks to liquify all credit extensions which were permitting large stocks' ol merchandise to be held for speculative purposes. Congressional action is expected with a view to driving foodstuffs from storage. NEW YORK, May 20. A wave of price slashing is sweeping th e> country. The" reductions are chiefly m men's and women's .wearing apparel. Many other manufacturers are following suit. The banks notify makers of non-essentials that they will receive only very limited .financial accommodation. Stocks, bonds, and commodity markets are highly nervous, and have sagged heavily, also Victory bond liquidations. Wholesale merchants assert that the move cannot be maintained. (Received May 21, 11.20 a.m.) NEW YORK, May 20. ' American manufacturers, realising the seriousness of the retail price-slamming, are now expressing their willingness to co-operate with bankers to reduce the cost of living by 15 to 75 per cent. They anticipate that the pre-war standard will never return. The cost of living will be half to three-quarters more than before. ' The newspapers to-day are crammed full of advertisements, shouting reductions varying from 20 to 35 per cent. m clothing, etc.