The state herald., 1907-08-09
FIXING OF THE COST
THE FACTORS IN PRICES OF
COMMODITIES.
PRODUCTIONANDDISTRIBUTION
Equity In Division Of Profits to All
Engaged in Producing, Manufac-
turing and Selling.

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 IL 1t 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 eN-
| 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. lie 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 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.
hers the rnmmlgsinn aganIs and Tho
retailers; each performing his speciM
service In the matter OF distribution.
| The consumer Is the end of the chain.
| the final buyer of commodities who
utillZes 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 Ia the production
of finished article. All goods have
a 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.
lie is the beginning link, as well as
the ending link OF every transaction.
| The farmer who grows wheat, when
he forces the grocer from whom be
buys his Hot. 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 al q
price below the cost Of production. he
invites substitution OF inferior goods.
adulteratinn Of the articles and on.
courages system that Is unwhole.
some.
The people should understand that
they never receive something fnf
nothing. or receive anything OF value
for less than its value unless under
some abnormal circumstance OF late
years there has u system grown up of
offering great bargains In various
kinds Of goods by catalogue sent
through the malls. and presenting ai
tactlyo and illuaiyc advertising that
goods are being sold AZ less than cost
| Tho intelligent man or woman will
carefully consider all the circumr
Htnncon relative 10 such offers. and
viii be- guided accordingly. II h eyi.
dent that when special bargains are
| NlhNN NN'Af NN' fhAAlAlNNA NNHA NN'NlAN
such bargains that goods are not of
standard grade. are stale. ~ drtarIor
nted In some manner Also there has
system of offering free premiums
grown ~ that h unNhulosomn, and 10
an extent au imposition upon the poo
pie ~ the system cumpolH them Ia
pay for articles that are not essential
Tor them Ia have The man who buys
sugar does not care IA br forced nm
der N" EulHo Of paying for sugar 10
pay for paper NJ pins or y package
of needles, even though These may be
free premium II IN we'll 10 bear
these points In mind. and little
study into business economics aud
principles Will be- highly advantage
oua TO the nne WIN desires 10 know
about the proper value of goods he
must buy