St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1907-08-17
FIXING Of THE COST
THE FACTORS III PRICES OF
COMMODITIES.
PRODUCTIONANDD DISTRIBUTION
Equity in Division of Profits to All
Engaged in Producing, Manufac-
turing and Selling.

SAb0 SSbhASa
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, IT, it may be so
termed, is the inclination of the
people to complain about prices they
must pay for goods required for do
nestle and other uses. These 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
1odfties. These factors are the cost
Of the raw materials, the expense of
manufacturing and the expense of dis.
tribution. From commercial transac-
tons 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-
faGture 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
upon the amount invested, and also
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 well be eliminated from
commercial transactions. He per
forms service that neither the pro-
Queer 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
utilities them for his own use and the
uses of his family. There should be
a margin of profit in each of the
different transactions that will allow
equitable compensation to each and
every one interested in the production
of finished article. All goods have
real value and this value is deter
mined solely by the elements referred
to herein. The consumer must expect
to contribute his mite towards the
support of all engaged in commerce.
He is the beginning link, as wen as
the ending link of every transaction.
The farmer who grows wheat, when
he forces the grocer from whom he
buys his flour to sell the -four at
low rate, indirectly has an influence
In lowering the market for the wheat
that he produces. When the consum-
er demands that goods be sold at q
price below the cost of production, he
invites substitution of inferior goods.
adulteration of the articles and en-
courages system that is unwhole-
some.
The people should understand that
they never receive something for
nothing, or receive anything of value
for less than its value unless under
some abnormal circumstance. Of late
years there has system grown up Of
Offering great bargains in various
kinds of goods by catalogue sent
through the mails, and presenting at
tractive and Elusive advertising that
goods are being sold at less than cost.
The intelligent man or woman will
carefully consider all the circum-
stances relative to such offers, and
will be guided accordingly. 1t is evil
dent that when special bargains are
made there are conditions that Justify
such bargains; that goods are not of
standard grade, are stale, or deterior-
ated in some manner Also there has
a system of offering free premiums
grown up that is unwholesome and to
an extent an imposition upon the PEG
pie as the system compels them to
pay for articles that are not essential
for them to have. The man who buys
sugar does not care to be forced un-
der the guise of paying for sugar to
pay for paper of pins or a package
Of needles, even though these may be
q free premium" It is well to bear
these points in mind, and a little
study into business economics and
principles will be highly advantage
Gus to the one who desires to know
about the proper value of goods he
must buy.