The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-06-07
WHAT AFFECTS PRICES.

WHAT AFFECTS PRICES.
lin connderin the question OF prices we
Must always reckon with the natural
laws Of trade. Under normal conditions
a given article will sell for the cost Of
production, with fair profit added I'm
der extraordinary conditions, prices may
be forced considerably above or consider
ably below the cost Of production, but
by and by, when normal conditions are
restored, prices will fall or rise, as tho
case may be, to the normal.
4 Sometimes tho price of cotton, for eX-
ample is below the cost OF production.
and sometimes again. rs ut present, 1t
A' largely In excessSof, such cost. Tho
high price of cotton to-day Is due to the
scarcity OF that staple. There has been
during the past several years m extra
ordinary demand for cotton, and the sup
ply has not kept up with It; hence the
extraordinary rise. In other years tho
supply has exceeded the demand, and the
price has correspondngly fallen.
1t sometimes happens also that pro-
ducers, by combining are enabled for
the time being to manipulate prices. But
tEcsc are the exceptions. The rule Is as
We have stated it. Prices as a rule arc
regulated by tho natural law Of demand
and supply. Time and again tho attempt
has been made by organized effort to put
prices OF manufactured articles higher
lhan the natural laws Of trade Justify.
But Invariably the law has eventually
asserted itself. When the price Is so
manipulated other concerns are sure In
The long run to spring up out OF tho con-
dltion and put the prices down to the
nornal Manufacturing companies have
learned this lesson and so even the trusts
are compelled to keep their prices down
In order to prevent competition. and In
order to procure Il healthy demand for
their goods. They have found that large
sales at small profits are better than
small sales at large profits, especially as
1t Is always good business for any con-
Germ which deals with the masses to be
on good terms with It's customers, and
nothing will keep q concern on good
tcrms'h WITH. Its customers short
Of Supplying good article at fair
price
The game rule applies in the matter of
labor. Tho man who sells his labor Is
very much in tho same position OF the
manufacturer who sells an article OF
commerce. There Is q market price for
labor, as there Is a market price for
other commodities. 1t Is mistake to
suppose that any concern absolutely fixes
the compensation OF Its employees. There
is always more or less of contest be-,
tween employer and employe. There is
little sentiment In business. The en-
ploycr seeks TO get his work done as
,cheaply as possible, and the employe en-
deavors to get as much pay as possible
for the work that he does. The contest
goes on. and n compromise on both sides
is the result, There is somewhere n
"happy medium" between the effort OF
the employer TO keep the price OF labor
down and the effort of the employe to
put the price OF labor ZIP. and this happy
medium Is the market price OF labor.
But there is competition among employ
ers and competition among employees, and
this competition also has It's influence In
determining the price. one employer
finds that he is able to pay so much for
labor, and rather than shut UP his egtab-
llshment lie VIII pay as much as he can
afford This forces other employers In
competition 10 meet the price. On tho
other hand. one laboring man is willing
10 work at certain wage, and, all things
else being equal. he viii procure employ
ment over his fellow who demands high
er wage, 1t is true that laboring men
may. By organization. more or less reg
ulate the price OF labor but II they put
the price higher than conditions justify
one or the other OF two things Will hap
pen, They will either have competition
from other eborers who do not belong
20 The organization. and those who offer
TO work AT The lower price. all things else
being equal, win get the job: or. II they
succeed in organizing all the laDorers IN
that particular branch of Industry or
trade, and prevent competition In their
own craft. they WIN compel tho employer
10 shut down.
There is little sentiment IN business 1t
is not enough in tho business world 10
say that man ought in fairness 10 re-
celye such aad such wage 1or such and
such work II another man equally as
competent will take The JOB at lower
Price. ths higher price sin not be Juid
We are not arguing the Sentimental
question. We are statlnsAthle cola facts
which both erppiosier and ernpi9ye mus
Tlrken with