The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1907-08-08
FIXING OF THE cost
THE FACTORS IN PRICES OF
COMMODITIES.
OBSERVATION-DISCLOSURES
Equity In Division of Profits to All
Engaged in Producing, Manufae-
turing and Selling.

Engaged IN Prooueln9p manuIae-
turing and Selling.
Were the masses of people better
informed as to principles underlying
business transactions and commerce
in general there would be less cause
for complaint as to matters pertain
ing to buying and selling of COM
modities.
One Of the faults, If it may be so
termed, is the inclination of the
people to complain about prices they
must pay for goods required for do
mestic and other uses. There can be
no doubt but that in many districts
retail merchants exact exorbitant
prices, this to an extent is the fault of
the people who are little acquainted
with real values. There are three i'm
portant things to be considered in the
fixing of the selling price of all COM
modities. These factors are the cost
of the raw materials, the expense of
manufacturing and the expense of dis
tribution. From commercial transac-
tions neither of these basic elements
can be eliminated The farmer who IS
the grower of corn, wheat and other
cereals that comprises food stuffs, re-
ceives compensation for his product
in accordance with the laws of sup
ply and demand, and the values that
may regulate the monetary markets of
the world. The producer of cotton in
the southern states, must receive for
his product compensation that is
based upon the cost of labor, manu-
facture and what finished articles in
the cotton line may bring in the mar
kets of the world. The producer of
the raw materials must pay for his
labor, and for his investment in farm
lands and farm equipment. The man.
ufacturer who buys the raw products
must take into consideration the ex-
pense of labor, the maintenance of his
manufacturing plant, the interest
various other items, and the sum of
these with what he can secure for his
finished product, regulates the price
that he pays for the raw material. In
the distribution of goods the middle
man plays an important part. He is
the go-between the producer of the
raw material the manufacturer, and
the manufacturer and the consumer
He cannot we'll be eliminated from
commercial transactions. He per
forms a service that neither the pro
ducer of the raw material or the man
ufacturer can more economically per
form. The middle men are the job
bers, the commission agents and the
retailers; each performing his special
service in the matter of distribution
The consumer is the end of the chain
the final buyer of commodities who
utilizes them for his own use and the
uses of his family. There should bt
a margin of profit in each of the
different transactions that will allow
equitable compensation to each anC
every one interested in the production
of a finished article. All goods have
real value and this value is deter
mined solely by the elements referred
to herein. The consumer must eXpec
to contribute his mite towards the
support of all engaged in commerce
He is the beginning link, as we'll al
the ending link of every transaction
The farmer who grows wheat, wheI
he forces the grocer from whom h
buys his flour to sell the flour at ;
low rate, indirectly has an infuenc,
in lowering the market for the whea
that he produces. When the consum
er demands that goods be sold at {
price below the cost of production, h
invites substitution of inferior goods
adulteration of the articles and en-
courages a system that is unwhole
some.
The people should understand tina
they never receive something TO
nothing, or receive anything of valu'
for less than it's value unless unde
some abnormal circumstance. Of lat
years there has a system grown up o
offering great bargains in variou
kinds of goods by catalogue sen
through the mails, and presenting at
tractive and Elusive advertising tina
goods are being sold at less than cost
The intelligent man or woman will
carefully consider all the circum
stances relative to such offers, ant
will be guided accordingly. 1t is evi
dent that when special bargains ar
made there are conditions that justif,
such bargains; that goods are not o
standard grade, are stale, or deterior
ated in some manner. Also there ha
system of offering free premiums
grown up that is unwholesome, and t
an extent an imposition upon the pee
pie as the system compels them t.
pay for articles that are not essentia
for them to have. The man who buy
sugar does not care to be forced un
der the guise of paying for sugar t
pay for a paper Of pins or a packag
of needles, even though these may b
free premium" 1t is we'll to bea
these points in mind, and a littl
study into business economics an
principles will be highly advantage
Gus to the one who desires to knov
about the proper value of goods h
must buy.