AMERICAN TRADE.

Wanganui Chronicle, Volume LXXVI, Issue 18073, 11 January 1921, Page 2

AMERICAN TRADE.

MAD EXTRAVAGANCE CURIOUS ECONOMIC PHENOMENON. (Correspondent “Evening Post.”) LONDON, Nov. 18. The New York correspondent of The Times foreshadows what must inevitably be the sequel to high prices and high wages. “ Astonishing facts illustrative of the pitch to which things have arrived are reported daily in the newspapers,” says the writer. ‘ For instance, 12,000 men employed in the building trade at Baltimore refused to claim an increase in their wages from 4s 6d to 5s an hour, which was promised them last spring by their employers. They are quoted as saying that, as prices seem to be falling, and steady work is assured them at existing wages, they have decided to be satisfied with what they have. One swallow does not make a summer, but the growth of unemployment in every part of the United States is undoubtedly having its effect on the dispositions of portion of the working classes. “The era of mad extravagance is definitely over. The silk shirted working man is disappearing, and the cheap jewels which he purchased in the heydey of war prosperity are slowly finding their way into the pawnbroker s windows. The diminishing buying ca-' pacity of the public has created a growing disinclination to acquire goods at absufd prices. For months past Americans have been reducing their purchases of clothing, other than necessary articles, to the lowest 'possible limit. The result of this consumers’ strike is now visible in the advertisements published by practically every large, store in New York and elsewhere, announcing bargains and 25 per cent, ‘cuts’ in prices. Wholesale prices began slipping down hist spring. Retailers then ceased buying, but they did not themselves, except temporarily, reduce prices to the public. Now they are obliged to realise on their stocks. BANKS SELLING CLOTHES. “This necessity has produced a. curious economic phenomenon. I met, for instance, a young bank clerk the other day who was trying to find among his acquaintances customers for thousands of suits of clothing. In other words, hanks which have accepted commodities as securities for loans are new finding themselves compelled to market these commodities themselves. One hears of confectioners being solicited by hanks to buy butter at below market prices, and other hanks selling wool, clothing, and sugar directly to the consumer.'The example of the banks is being followed by manufacturers, who. having suffered numerous cancellations of orders, are opening rooms in their factories nnd offering goods directly to the public.”