The Lancaster news. (Lancaster, S.C.) 1905-current, August 26, 1919, Page PAGE THREE, Image 3
TIT ESP AY, AUGUST 26, 1919.
PRICES COi
(By Paul Clay, In Forbes Magazine.) pool or
It has been generally believed that supply
commodity and goods prices were nev- So it is
er coming down. This belief has been that is,
taken so seriously, even by those who have all
exercise intelligence in most matters, If, tl
that it is worthy of examination. ' amount
It is easy to see how the idea came the Uni
to prevail. Producers and merchants one of
have been praching the doctrine of commoc
permanent high prices in order to in- come d<
duce the public to buy, and they have or powc
for evermore, and a continued bull able to
market in which i> will always be easy| of copp
to make money. A student of finance market
thus summarized the opinion of the about 1
4 street: | Soft i
"Prices have become acclimated to have ai
the present level, and they are going' than 5i
to stay here or go higher. You will are pre
never live to see them come down.] 400,001
The money and wage inflation will mines 1
not let them down. Indeed, 1 would 5b0,00(
not say that prices have gone up, but' ?'tly ab
rather that the value of the dollarj mi
has gone down. You pay twice as enough
much for anything you buy, but every cotton
one is getting $2 of income where he ducing
used to get $1, so that it Is an even hue bal
thing. Stock prices are about the tion of
only ones that haven't doubled; but tween
stocks are earning double what they parity;
were before the war, and they have %vas ub
got to double their dividends. Stocks cent be
that used to pay 5 per cent must pay llelie
10 per cent, and when this becomes price It
the rule stock prices will double " | ure out
Kverywhere the wish is father toj plant cj
the thought and serious examinations to he k
of the question whether prices actu-'show t
ally will come down or not are con-! would
spicuously lacking. Let us do the, idle; b
unusual and unconventional thing man w
namely, a bit of sober thinking upon tail pri
the subject. Thinking In regard to|that he
prices is unusual because nine people output
out of ten take their opinions ready- cotton
made from the captains of industry tail acr
and finance; and it is unconventional ceeded
because under existing conditions It about 1
is to the Interest of both organized Hut
inuur aim organized capital that plant c
prices should stay up. Roth can that th
make more money if they stay up, 000 an
and enough more to live higher than now se
before the war. do not
Rut we cannot see Into the future and llo
by looking at the wishes of various hardly
interests. There are definite business where i
influences or economic forces which tain th
govern prices, and through an honest begin 1
look at these some rather broad, but Qf aim
reliable, conclusions can be reached will b<
at the outset. prices.
Perhaps the best known of these is The
the law of supply and demand. This Up is t<
law. or rule, is merely an expression an,j j,n
of the experiences of all ages and only wi
peoples. It means simply that when soi,
the supply of a given article exceeds n js
the demand for It. prices will goj jnfr t.V(
down, and vice versa. There have (ju, wo
been trusts and monopolies and cor- to lit t
nors ever since Joseph went down profitet
into Kgvpt to buy corn: but while the Howi
rule that supply and demand governs 0f supj
prices can be temporarily interfered statisti<
with. It always cornea back and exer- were tc
rises its dominating force. have e
The biggest single factor in deter- ?' 1
mining supply is plant capacity - a reus<
and go
meaning the extent of the plants or . ,
Price h
factories built and equipped for the nu
production of a given article. Wheth- wheels
er or not a plant is idle at the mo- though
inent is almost immaterial in consid- though
ering future supply, because there is ment 1
always such a strong inducement to withou
kl (>li uriwl net ni? nlunla ,,n
much as possible. When they ar?J < nn ro
idle (he owner rcIs no return on the| \s p
money invested in them, and besides .more ci
this they deteriorate physically at the! and dii
rate of 2 to 7 per cent per annum.'a tuple,
liven where there are agreements to a supp
restrict production in order to main- require
tain prices, producers individually lo meet
are always tempted to break awav bides g
front these agreements and produce fen
at the full capacity of their plants past y?
in order to get the profit on the larger almost
volume of business. Thus idle pro- and to
during capacity is always tin Indira- down h
lion that supply will increase: and borrow
but fot short and exceptional periods either <
of time. It is a reliable indication, amount
Trust agreements for keeping produc- bank or
tion down, or gentleman's under- Hut the
standings for the same purpose, work and th<
very well so long as there is business to advj
enough to go around. But whenever, everyor
because of reduced consumption or tail sin
monetary troubles, there is a dearth more c
of business, some of the producers his trar
are sure to break away from the Wtij
agreement or understanding and be- Durli
gin cutting prices as a matter of self- have g
preservation. Then the monopoly, require
uiuiirih io meir assistance a great] in lo<
army of advertisers, writers and so- one, it i
called economists, whose opinions are1 idle pro
for sale. Hcsides this, some few econ- We 1
>mlsts of the best intentions have been to prod
over-awed by the apparent strength of lumb
of prices, and have come to accept turning
honestly the theory. 000 fee
Wall Street, too, simply devours the our ste
theory that prices are to remain at tons ye
the present level, for if this be true ;tt the !
it means immense industrial nrotits' tons.
THE LANCA
000 of additional workln
M/JT? \17\T carry on the business of
YEJCt f #1 m |r|f can people. The mone
supplies of raw material
.... . .. , ? furnished goods on hand,
trust falls, and the rule of
... .. cost of labor that it took
and demand reasserts itself. . . . . ,
A. . . , finished goods. Otherwis
that successful monopolies?- . , . , ,
? . , in order to keep this bul
effective control of prices? , ... .
. . * i, i in commodity and goods
vays been short-lived. ? , .
A. , forward, our business ir
hen, there is now a large ...
. ... , , , able to borrow somewlu
of idle producing caoaeitv in
, - ~ ". . . V tional $500.(too,(too eac
ted States or the world, it is .. .
.. . . 4. t thereabouts,
the surest indications that , .
This is why interest r
lity and goods prices will . , , . , ,
,, coming so high. It is t
jwu, regardless of the wishes , ...? w , .
and more difficult to hot
>r of any man or organization. ,
, . . . , . . . large aggregate amounts,
jking at our industries one by , , , , ,
, , , . supplv of loanable funds
s observed that the amount of , , ...
, , short. Capital is nothing
ducing capacity is immense. . ? ,
but accumulated savings
lave a capacity, for example, .. ,, ....
? . ...... a..,, r . ,h<! savers, through then
uce about 4 4,000,000,000 feet ... , ...
banks, have loaned all t
er per annum, whereas we are ...
. ^ or capital the borrowers
out only about .10,000,000..
row any more until more
t. I he aggregate capacity ot ? . .
, , ot personal incomes.
el plants is about 4 2,000,000 ....
, , What. then, happens t<
ally, while we are producing ...
. prices when the supplv of
rate ot only about 27,000,000 , . , , .
short as it is doing now
Our mines and smelters are
turn out 1 , 1
. . , , , leather trade. The retail
er annually, but tor lack ot a .
,. . , gets in from the manufa
they are turning out only , , ,
, consignment of shoes at
,2(?o,ooo.ooo pounds.
. ... .... prices be ever paid. 11?
coal mines 111 the I lilted states .
bank with a renuest for i
:i annual capacity ot not less , ,
... ...... ...... , . $5,000 lean, and gets tb
lb,000,000 tons, whereas they ...
money is tight and he e;
xlucing at the rate ot about ...
. ? .. $2,000. When money is
1.000 tons. Our anthracite , , , , ,
business Is affected by it,
lave a yearly capacity ot 09,efforts
to borrow the
l tons, and are turning out , . , , .
. o- ...... . where result in either fa
out 8a,000,000 tons. Our cot- ,
.in paving an excessive r
lis can produce cotton ?rnoH?
..... .. ... . . - est. To relieve the
to uso up o7U,000 bales of .
pushes the sab' of shoe:
per month, but they are pro- . , , ? ,
priees; and because of th
only enough to use up 1 i 5,.......
, ness of money other m<
es. 1 he worlds lb 18 produc- , ,
manufacturers push the s
grain and vegetables was be- ... , , ,
.... , , thing else by shading p
-0 and Jo per cent below ca- , ...
have to do it, because th
and its production of sugar ... ...
. Ital or hank deposits are
out a,000,000 tons, or 2;> per , , ,
to the limit, and becaur
low capacity. , .
cannot lend them the am
vers in the notion that present , ,
ov needed.
ivels are permanent must tig- ... , ,
The relationship is ex
in some way that all this idle , ....
pie. Rising priees abso
lpacity and a lot more is going , .
.. . more capital; and whet
ept idle. It is easy enough to , , .
supply becomes exliau
hat producers In many lines . . .,
prices must necessarily
make money by keeping it ,
producers and merchants
ut the ditlicultv is that every .
their goods to proven
ants the other fellow to cur- r . . . ,
from becoming insolvent.
iduction and put prices up, so
' everv period of tight mo
, himself can turn out his full iaMy fo?owed by ?
and get big profits on it. The perio(, of fa,|jnK pr|o<,s
planters this year tried to cur- ,ustrate this fact from
eage by 30 per cent and sue- ence Qf any aj?e Qr na(|o,
in cutting it down to only aa recorded financial hisi
V4 per cent. Tight money or high i
the surest indication that this do nQt ocour exopp( as
apacity cannot be kept idle is of 9carcity of capi(al
e world has between 15,000.- f?nds; and experience sh
d 20,000,000 troops who are monfty market is one of
eking re-employment. If they indioe8 t(, the flIture v,r
obtain it there will be rioting In recent times in (h,. (
lshevism the world over, and )ho ()n,y four perl<H|8 of
a ministry oi government any- we j,ave bad began in
cun stand. Rut if they do oh- ipo2. December. 1005, /
e employment, idle plants will atwj t.iW- into
IC^JI
unning again, and the supply course, tight money is
ost every conceivable article ately followed by a sh
so increased as to reduce modify prices; for merch
ducers first finance tlieini
only way prices can he kept rowing all they can fron
? keep the plants and lactones they know, and also froii
oductng capacity idle, and the (talista. and do not cut
ay this can he done is to keep us ia8f resort. This, ho'
iliers out of jobs. a delay of only a few wee
a pretty good-sized undertak- between the beginning
n for those who think that money period and the co
rid is going to he made over of the slump in prices.
he bull market or to suit the in the 1902 instance
;rs. prices began in Decent!
ever, even if there were no law ried Hradstreet's index i
tly and demand, or if all the from 8.1413 to 7,6318,
rs of idle producing rapacity was reached the follow
tally erroneous, we would still 1905 the boom here wa
vidence enough in the action means of heavy borr
money market to prove beyond rope, so that the slump
mable doubt that commodity not begin until March. 1
ods prices are coming down, than a year thereafter it
rvels are as closely related to street's index down fro
>ney market as one's car 7.7227. Perhaps even i:
are to the motor; and al- is the fact that in 1914
the two are not usually resulted in a slump in i
f*of together, the hull move th? certainty of a big
n goods prices cannot go on
* 1 tor goods, from August
I the help of the money mary
more than the automobile "
without its engine. 1\ * | 'Q 1
rices go up it takes more and *
ipitu 1 to finance the production ?
strihution or goods. For ex- ro do mice, once they eat
the tanner must keep on hand And they leave no odor b
Iv of hides to meet his own take our word for it ti
/'.Oo ....i - * -
. .. r i .1 . x ui>i rtliil U?>KM WOI1 I I CM
infiiis anci :i supplv of lciitloT .. ,
pass up all food to ^rot
those of his customers. When Three sizes
> up from :? > cents a pound to 2."?c. size (I rake) eno
ts. as they have during the try, Kitchen or Cellar.
tar, his stock of hides costs ,, >**' s'/r t?s cakes)
Mouse, coops, or small bit
twice as much as formerly. 00 sj/|. (5 rakrs) on
pay Tor it he must either draw farm an(j out-bulldings. s
is deposits at the hank or else ings, or factory buildings
the money from the hank. In Sold and Guaranteed l
? . , . , ii> ... Drug Co. and W. S. Stewi
use tie thereby diminishes the ^
of money or capital which his
in loan to other business men. - nn/\nnnL<i/iv a r
. . ... . , PROFESSIONAL
rise In hides puts leather up,
? rise In leather causes shoes
inee, and so it happens that DH. J. KRWK FUND
le from the tanner to the re- Dental Hurgeo
ae dealer is using more and Office Hours:
apital <n the management of 8:30 to 12:30 A.
le. 2:00 to 6:00 P. S
y Interest Itntcs Are Iflgli. And by Appolntir
ig the past four months prices Office Phone 160
one up so much that it now Residence Phon
s probably about $2,000,000,- Office orer Lancaster
,STER NEWS, LANCASTER. S. C.
ig capital to No vein Iter 1, ltradstreet's index v
the Aineri-i down from 9.849FV to 8.8620.
y goes into rule never fails, because the busit
Is, stocks of I man who cannot borrow money n
and into the sell goods,
to make the Decline Inevitable,
e expressed, Illustrations might be multlp
11 movement | from either our Civil war experie
prices going or j^e Napoleonic period. I'e<
ten must be, have become convinced that li
tre an addi- pr|ct!S are permanent merely beca
h month or fhoy j,aVe held and rallied since
I war ended. The rally, however
ates are b?>- imsed upon urgent buying to sat
jetting more, j,,,mediate needs, and is nothing ir
row in such than has occurred after previ
because the'KJ.<ia( wars; and any permanent f<
* is running Nation under this high price leve
in the world aK iackinfr now as it was then,
i; and when previous experiences have shown
agents, the Hamf> money inllation, ami a sint
heir savings rjsl, wages, and yet prices
cannot bor-! come down,
is saved out 1
: Admittedly the general aver
price level may never get back \vl
> commoditv . , ?
, it was before the war; but few hid
capital runs
, | are the thoughtful men who do
. . , expect prices to go half-wav I
I he shoe and ... ...
. . , , within a reasonable tune.
I shoe dealer
icturer a big Instant response to these econn
the highest: factors eannot be expected. The
goes to his world is not a movie shov
in additional which 'he whole performance is <
ie reply that 'n an hour; and the high price le
in havw only ,nay eantinue for a few weeks
tight everv months, depending upon mono
and thus his IU' trade developments. Howe
$2,000 else- 'he main points are that the
ilure or else ainount of ''lie producing capacit
ate of inter- s,,r? Pfoof that there will he a g
situation lie' inrro?s" 'he total supply of go.
5 by shading' an<? ",;it the tightness of the mr
e same tijght-l n,ar*<?*t equally demonstrates that
?rchants and ',IIU* is no' rar nff when produ
aje of every- an<1 merchants w ill he shading pi
irices They' hecause of inability to finance th
eir own cap-! solves otherwise,
drawn down Fn ,iriof- ,h<> ??,ion 'hat the e:
?e the hanks illK I'1'''" level will lie permnnet
POISON OAK
... .
Wash with weak sotution
of blue irtone or W
lime water, dry thoristed.
goods oughly. follow with light appli- J^ij
fall because cation ot"
< VICRS YAPORUBi
t themselves ~YOUR BODYGUARD** -30*. 60'. *
So it is that
ney is invar- "
considerable ?IRR|H2flIBHBBg
One can 11the
expert- [0c;
i as far back
or loanable
iows that the QJcj
good prices. yS
tniteel Slates ?3D]
tight money an]
September. *3^] t
kugust, 1 : 1 4. 0^ j&B
actively. Of QJ^
immedl-j
iveve'r, causes ye
ks or months
of the tight gg V?J r M'
mmenccmcnt ah] B ^ . __ _ if
r or 1
the slump in ^ A A A
Iter and oar- (US
lumber down ye
which figure
ing July. In
s kept going an]
owing in Ku-igS
in prices did |f&
!M?7. In less [DS
carried Brad- 0=
m 9.1293 to ? I he owner-prestige w
nore striking'? Lexington is due not air
tight money an) but also because it has
iriees in face tin!
war cieman.i The efficiency of the
ir?. i; 14, to ^ii ?* a never-to-be-doubte<
-IHFii forniance. I ti congest t
Pv ? wp through mud or sandy
Lft ILi never need worry about
^ Lexington to come t h
HAT-SNAI>. ^ Colors.
?*himl. Don't (uk1
y a package. Lexington stiHicic
ich it. Hats ?jf.j .,
HAT-snap [ijp than its excellence
I j[P Equal to all road demur
ugh f<?i I an- .jp] ajso adequately fulfills t
jr-J
f??r chi< ken frjq can he required of a m<
ifhling*. Spj
o?Kh for all Bjrj) The Lexington has a
torage build?.?n]
dant speed within reasoi
by I .a master kfo usual flexibility, sturd
man K Co. t (Ul, . .... , ... .
_ rinj addition it has sutncien
4 cjj]| roominess, luxurious <
CARDS ap] smart appearance, rich
> + 4 bb
KKItl Itli. c
EVANS
,
tent. nrp
e 62. ^
" (7^'fr7nrpn,T;ri^F'nrp(irpp^[i^rF^.^
Pharmacy. 15J
/
1
nt sheer nonsense. There is not a scrr,
The of evidence in tin* business situath
toss *o sustain it. and it is contrary to a
tust the principles of economics, and I
all tiie teachings of past experieno
Jt is a belief which immediately di
lied appear* upon attaining the slighte
,nct, knowledge of the subject.
>ple VHMBA1ILK8 s.\ll> TO POH8E8S
liKh MKDK'IN'Ab PltOPKItTIi
Watercress is an excellent blot
purifier.
| o
' Lettuce lias a soothing effect t
i s f v
the nerves and is excellent for suite
,<,r' ers from insomnia,
ions Tomatoes itre good for a torpid li
l"n" er Itn 1 should bo avoiileit in
' IS People.
u> Celery is a fine ihtvp tonic; onioi
also art- a tonio for tho nerves.
'?ar Spinaoh has greu taperient until
tins, anil is far better than medit 1
foi sufforors from constipation
11 ^? Heel root it fattening and good I?
teto people who want to put on tlesh
leetl Parsnips possess the same virtu*
not ilv sarsaparilla.
>ack ('ranherrios correct the liver.
Asparagus stimulates the kidneys
title Itannnas are beneficial to stiff"re
lius- from chest complaints.
r in Celery eontains su'phiit and hel
tver to ward oft rhemnatisni.
vels llom y is a pood substitute for c<
i or liver oil.
tarv The juice of a lemon is excelle
ver. for sore tiiroat. It should not
vast | swallowed but used as a gargle,
y is [ Carrots are excellent for gout.
. i iM'iirfi imin .inn lust we-e-k."
, v "What is ho doing?"
tho I "Learning a now job."
<?rs! "'Setting cm all right?"
s "Hroke an arm last wo. k. lie to
tern- n,? "
"Whew 1"
"Week he-fore- he- sprain, el an .
"Well:"
j "One- day 1m- nearly 1.?st an eye- "
"1 never did believe in too inn
1 at hlet ie s "
^ "This is different."
Wk "In what way?"
IW "I ask. <1 Jim w hat he meant
'that kind of c-oneluc-t. anil he- -aid
Ok he- holds out long enough he s : o i
'-20 |() i,(. a moving picture actor."
2^ MINUTE MAN SIX V5^
' *r
hose Wh
Liveable (
on and held hv the is fittingly i
?ne to its efficiency, pleasingly s
; sufficiency. meets all de
Lexington consists Economy
1 certainty of per- . .
, ... crease ot h<
'd traffic, on hills,
roads/ river the MooT? :
the ability of the noying s<|in
rough with living by the consi
100 separat
ncy reaches forth- greater stre
of performance. of control i>
ids, the Lexington ing, one fin
itnt'f niirmvc<? * ??
> v . I rial I I 1.11
>tor car. '' |v ' *'e
many other
mple power, abun- thatconstiti
i, easy control, un- the Lexinjrt
ly endurance. In
t size, with ample Carload >
comfort, refinedly See us and j
appoinments. It your car. 'I
i & WILSOl
LANCASTER, S.
ir;|i 1 rapp". rqi =p.rauE(u
it. i ? iici Jcjtki' otnwnlai^ntnltriltrOtn
pa(;e three
ipj A returned soldier tin<1 scare. iy
?n[ pncifd friend wife after his return
II from France when she asked eagerly:
to "And, dearie, did you bring me a lot
e of souvenirs?"
s- "Only this little bullet tho doctor
st took out of tny side," he answered
gravely.
"Aw, gee," sighed wifey, "I wisli
it had been a German helmet."
IS
id '
"Hut-Snap Iteats the llest Trap Kvcr
III Made," Mrs. laiii'y Shaw Says.
r"My
husband bought $2 trap I
v bought a 50c box of HAT-SNAP The
traji only caught rats but HAT'yjSNAP
killed 12 in a week. I'm never
I without HAT-SNA I*. Reckon 1
tjc' couldn't raise chicks without it."
'RAT-SNAP comes In cakes. Three
i sizes. L'ac, 50c, $1.00. Sold and guar!"
anteed l?y Lancaster I >rug Co. and \V.
te s. Stew man Co. t
I
t
' DR. W. R. REGISTER
Specialist in
f Chronic
and Nervous
. i1 Diseases
i
of Men and Women.
he
Piles and Rupture
Cured Without Operation or
,, Loss of Time nnil I ntler
(itinra ntee.
r-h
"I 1206 1-2 Main Street
>y
ne! Columbia, S. C.
R^MamagBeag^lsl
iQsP^P^
i> i !
afi
p.- -i
r ? ^
8
1
0 Want 1
r>? l8
^ar s
llfi
correct for all social needs and ^
uitahle in any environment. It
[Ug
mands at all times. aoj
2ril
of fuel and proportionate in- ^
ng
>rsepo\ver are eflected through sq)
Multiple Exhaust System. An- IfjQl
isiks and rattles are banished rue
z;\i
1 ruction of the frame, in which PJf-j
e parts are eliminated to Rive
nn'
mirth and lighter weight. Ease ^rJ
? ^
promoieci ?y the* positive act- pjr"!
ger emergency brake.
am
sum of these features with [iHi
ffWV
s. all in harmonious relation, iarfl
P rr-?
ute the sutlicienry which makes sni
on a trulv liveable car. !Hhl
hipped from factory August 1. blj
ret a demonstration, and select [^ni
'hey won't stay with us long. j=p
Dealers I
p
phi