The Boise citizen. (Boise, Idaho) 1906-1910, 1909-08-13
iron AS TRADE BAROMETER

Edward H. Putnam contributes the following article relative
the advance in iron being considered index of
times:
Advance in price of iron generally heraded a sign of
growing prosperity
While that sustained advance coincdent with
aned increasing output signifies increased purchasing
the part Of the public this of minor importance compared the
economic significance of the pceadvance in itself For is
axiom of political economy that increased productivity tends
toward higher but toward lower prices?
Rising prices for iron may indicate increased general auene
but should lose sight of the further fact that may also
indicate power monopo of the of supply charge
merely equitable price but prceany pcewithin the
of the consumer to pay It this power really exists not
only relation but also relation the materials
industry in general then evident that prices will be arbitrarily
advanced absorb any increase in the peoples power pay
If conditions forced prices below the point
that affords equitable margin of profit then that point
should be of general qualification But under the
opoy conditions that prevail the field of materials the
public cannot possibly know when that point has been reached
Where the element of competition is freely operative price may
huctuae within limits but the unvaryng tendency
the point of equitable remuneration for rendered
But where the factor of competition is absent in the field of
monopoly the point equitable affords check
the upward tendency of prices
In the competitive field perforce limit his selling price
his competitor B. would accept But the field of
opo is the sole OPERATOR and he charges not the that
else willing accept for there else but all
that his customers and B. be forced pay His price stops
the point which his judgment will afford him. all things con-
sidered, the largest possible return.
He could for brief period but only the penalty
of srnkage volume Of sales with the further risk of Gripping
his customers and thus inducing panic and general business de-
preston In fact this precisely what he does do the end he
did it in 73, in '93 and last, in 1907
The point that the monopos of the of supply of the
all they
choose ask and that prices that field determined not by
rendered but by the monoposts judgment the
paying power of the public
Advancing price of materials manifestation of the
monopol method of foesang the public of the prosperity that
otherwise it would enjoy.
Under competitive operation increasing business activity and
gradual decline the price of iron would coincide distributing thus
prosperity the general public But under existing conditions
business activity and rising price of will coincide thus appor
onng the activity the public and the prosperity the
opolist
These truths becoming manifest increasing number
the people, which for the widespread sentiment
favor of a revision downward of the tariff
For the public getting hold of the fact that the protective
tariff the monopos position that in the absence OF the
tariff American public would have to of supply
not controlled by American monopolies
only vague sentiment with the general public yet
however, it does not amount settled intelligent conviction
The prevailing sentiment of equal opportunity and
ought know better actually believe that such conditions exists
We've equalzed opportunity This is the most that society
can do if cannot equaize men, That the way certain vom
inous dognast puts emphasis and ALL The quotation shows
that the author of sentiment in favor of equal opportunity
and further that ignorant of the fac that equalization
of opportunity still waits upon the action of society
Let hope that society cannot nor will be able to- equa1ze
men.
And let us hope and confidently believe that society will
vet equaze opportunity the end in part that the increasing
productivity of human society shall longer afford special oppo
ty the arbitrarily advance the price OF the materials
of industry.
Let us believe that society do this Let it that
society shall do this.
The sign of accomplishment will be progressive decline in
prices increasing productivity and consequent tendency to-
ward universal prosperity