Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1914-08-13
Question Con
cerning Prices

article appearing in recent issue c
! the California Fruit Grower. Mr.. "
IF. Gwfn, General Manager of tn
Northwestern Fruit Exchange, whe
shown the article, expressed himsel
as thankful that such fcrceful expos
of theory should have found ii,
way into print. HThe growers VIII
find in this article food for mucl
thought and an opportunity for frs
hand analysis of a proposition close
to their hearts" remarked Mr. Gwin
It seems that the Heraldsburg En-
terprise asks why prices ON com
modities are lower in years of heavy
production than in years of scarcity,
citing as an instance the fact that a
few years ago when blight attacked
the pear orchards, Gamers paid s65.
ton for Bartletts when before that
time the price had not exceeded s15
to S17.0O. The Enterprise takes III S
as a basis of figuring that dealers
have not dealt fairly with the
grower, that if pears were worth
$500 one year he should be glad to
pay the same high price always. That
"a peculiar condition exists which
causes big price Cor small crop
and low price for a big crop max
ing TIE grower prefer the small crop
conditions is the opinion of the
Enterprise.
The California Fruit Grower takt s
exception to this expressed PECULIAR
ty explaining that it is natural for
the supply and demand TO equalize
in price The large supply is not met
by a proportionately increased de-
mand This gives the dealer the ad-
vantage in controlling the price. On
the other hand. when supply is weak
er than existing demand the seEer
has the best of it and can hold for
his own price. 1t is true that in
years when a great quantity of fruit
develops the price is tco low. The
grower feels this and holds it against
the dealer and consumer, believing
that he should pay the same as when
a scarcity existed. The main point is
Where is the ceiling?r
If the grower or producer would
work under the law of averages he
must sacrifice his extremely high
prices when the market is steady and
not expect the prices which supply
and demand dictate at the moment
From a standpoint of economies the
too high prices must be counted II
the too low given consideration. If
one could hope to escape the extrem-
ly low price he should by all that's
fair not ask for the extremely high.
The two ways as expressed by the
Grower to be economically correct
are, First: For the prices to be
by supply and demand, the
buyer wishing to buy as cheaply as
possible and the seller demanding as
high a price as possible. The other
Is to find fair price for the COM
modify based upon cost of product
ION, plus fair profit to the produc-
er, and maintaining that average
the ebb and flow of fluctuat-
ing markets; not taking lower
price, nor asking for a higher if op-
portunity affords. The two must be
equally balanced to be truly econom-
Ical. When the average over series
Of years does not prove profitable
the abandonment of the industry is
advisable, though not wholly SO, for
with the departure of part of the
supply the demand would balance
back with an equitable price.
The Fruit Grower cites many cas-
es where low prices are condemned
by both the printed and spoken
word, but cannot find the exception
where consideration is made CT re-
turning part of the high receipts dur
ing fortunate" seasons. Condemnat.
lcn of the low prices must be done
with due consideration of the values
wh.ch are above the average, and
there is no just hope of escaping
prices below cost of production, un-
less there is a maximum placed on
prices in times of extraordinary de.
mand.
The fruit grower does not place a
maximum upon his prices and when
thera is demand he places no val