The Washington herald., 1916-08-21
Paper TO SOAR
LONG after WAR
Higher Wages and Stoppage
of European Wood-pulp
Supply Causes.

Prices on all grades and forms of paper
will continue to soar until long after the
European war has ended in the opinion
Of Charles G. stott, president and treas
urer of the firm of Charles G. Stott &
Co., dealers in stationery and wrapping
paper. situated at 1910 New York avenue
northwest.
The price of paper is soaring at an
alarming rate" said Mr.. Stott last night.
From present indications, this advance
will continue steadily until after the war
has ended. It is impossible to forecast
accurately at this time exactly how high
the price will climb, but it is certain that
conditions will not again be normal until
fully six months or a year after peace
has been declared. This is not alone my
own opinion, but likewise the belief OF
the vast majority of the big paper deal
ers with whom I have recently conversed
REGARDING the situation.
The factors contributing toward the
high prices are numerous and complex
and it is extremely difficult to analyze
the situation satisfactorily. Some of the
causes. however. may be mentioned
such causes as stand out boldly when
the situation is reviewed.
The increasing cost OF labor is one of
the most important factors. Throughout
the East, and particularly in the New
England States, where the bulk of the
paper is manufactured, factory workers
have demanded higher wages and have
received them-sometimes peacably and
sometimes not without strikes and bat
things.
Exporting Little Paper.
They have been able to demand higher
wages principally on account of the war.
The belligerent nations, desperately eager
for munitions and for the necessities OF
life, have been willing to pay enormously
high prices for products and unusually
high prices for labor. And this in turn
has forced up the price of labor in this
country. And then the abnormal pros
perity of the country, due to the large
war orders, has been a good argument
in the hands of the workers in justifying
their demands for higher wages. At any
rate the workers have received the high
er wages, and the price of paper has con-
sequently been affected.
Then. too, the war has shut of paper
pulp sources on which American manu-
facturers depended prior to the war. For
merly large quantities of paper pulp were
imported from the central powers, from
Russia, from Norway, and from Sweden.
These supplies long ago were cut OF.
This has resulted in scarcity of paper.
A very peculiar contributing cause is
the panic brought about by the supply
shortage and the high prices. If every
one were calm the situation would not
be so bad. But every one wants to buy
Immediately for fear that later the prices
will be even higher. This has given rise
TO an abnormal demand-a demand much
larger than when paper was plentiful and
prices low. Paper dealers are buying
nearly five times as much paper as they
actually need-alI because Of the panic.
Demand Higher Wages.
We are now exporting very little
paper. so an embargo on the product
would be Of little aid in betterins
the situation. The only remedy is for
their nightmare, but this is a dream
that is unlikely to be realized. So
the public will be compelled to wait
patiently for the end of the war.
Paper prices here have advanced
from twenty-five to 100 per cent
since the soaring started. Prices on
paper bags have gone up exactly 100
per cent. And. moreover, it is al
most impossible to get orders filled.
Yesterday I received a carload Of it's
sue paper that had been ordered last
December. , I placed an order yester
day for a large consignment of paper.
about the delivery and price of which
7 know absolutely nothing. l am at
the mercy of the market situation.
7 shall get that consignment of paper
sometime within a year and I will be
compelled to pay the market price at
the time of delivery, a price that may
be twenty-five or fifty per cent righer
than that prevailing now"