The weekly Iberian. (New Iberia, La.) 1894-1946, 1903-09-19
New Iberia, La.

ami t,.sts. Ard ,i,s competition by
=. h.s1 r-e ,',. II an article Is fixed
T. rs;r,tfuiu
Thr an: mmodity, is offered
+ IN the market ny various sellers.
Who"yrr frrs the greatest aGvau.
tage L. Na,Irh esers is rertain to drive
the Otter sellers off the field and
secure Ter biaself the greatest sale
The sellers, therefore. fight for the
sale and the marke, among them
self. Every one OF them wants to
sell, and does his best TO sell AZ
much, and it possible to become
the only seller. Therefore each out.
bids the other III cheapness, aud
competition takes place among the
sellers which lowers the price of the
goods they offer.
But a competition also goes on a
nong he purchasers, which on the
'r side rates the price of the goods
offered.
Finally there arises competition
between buyers and sellers; the one
set want to buy a. cheap AZ possible
the other to sell as dear as possible
The result of these compe,,.,ou be-
tween buyers and scIlers viii depend
upon the relation of the two prev
ious aspects Of the competition: that
upon whether the competition in
the ranks of the buyer, or that in
those of the sellers ls the keener
Business thus leads two opposing
armies into the held, and each of
them again presents the aspects of
battle in Its own ranks, between It's
own soldiers. That army whose
troops are least mawled by one ano.
ther, csrries off the victory over the
opposing ones.
Let MS suppose tina, there are bun
dreds bales of cotton IN the market
and at the same time buyers in want
of a thousand bales. In this case the
demaud is greater than the supply.
The competitor between the buyers
will therefore be intense; each of
them will do his best tc get hold of
all the hundred bales Of cotton. This
example is no arbitrary superstition.
In the history of the trade We have
experienced periods of failure of the
cotton plant, when particular CON-
panles of captilists have endeavour-
ed to purchase, not only hundred
bales of cotton, but the whole stock
of cotton in the world. Therefore
in the case supposed each buyer will
try to beat the others out off tho
field By offering propor,ionately
higher price for The cotton. The cot
ton-sellers, perce,ving the troops
Ut the hostile host in violent com.
bat with one another, and beng
perfectly secure as to the sale of all
their hundred bales, will take very
good care not to begin squabbling
among themselvs IN order to depress
the price at the very moment when
tier advtrsaries are emulating each
other 10 the process Of screwlng II
higher up. Peace is, therefore, sud-
denly proclaimed in the army of the
sellers. They present united front
to the purchaser, and fold their
arms philosophic content; and the.
II claims would be absolutely boun-
dlese, if 1t were not that the offers
of even the most pressing and Gag.
er of the buyers, mast always have
some definite limit.
Thus If the supply OF a commo.
dity is not 80 great az the demand
for it, the competition between buy
ers waxes. Result: A more or less
important rise in the price Of goods
As rule the CONVERGE case IS OF
common occurrences, producing an
opposite result. Large excess of
supply over demand; desperate com.
petition among the sellers; dearth
OF purchasers; forced sale of goods
dirt cheap.
But what Is the meaning of the |
rise and fall In prices? What is the |
meaning Of higher price or lower
price? A grair of sand is high when
examined through microscope and
q tower is low compared with
And if price is determin-
ed by the relation between supply
and demand, how Is the relation be.
tween supply itself determinedi