El Paso herald. (El Paso, Tex.) 1901-1931, 1918-11-27

WILL prices come now? is question which the
w termination Of war brings The housewife is
ested in It and not less concerned IS her husband whose
money buys the clothing and the groceries interested also
the retail merchant and the wholesaler whose sails
must be trimmed there is to be change in the wind
Tie banks also concerned for they lend money to
merchants 20 finance their purchases of stocks
If prices keep going up, despite the end Of the
vsr, what vii the end be-bolshevism?
prices drop sharply, what will Tesult2 financial
crisis and business colapses?
These are vital questions Ringing the trend of
prices They involve the welfare of everybody in the
country and the very stability Of the nation They have
been answered in forecast by financier and eminent
economist B. n ApdeIson, il Phi D. Of the National
opiuon also but his reflects view. Dr. Anderson, II
treatise recently written, says:
"A sharp drop in commodity prices VIII follow the end
OF the war, but viii have crisis Wages will also
drop but fair play the part Of both capital and labor
viii keep this from resulting in industrial turmoil How
ever continuance Of active business viii depend upon
the policies which governments banking ana business pun
to further the rapid repair Of the wastes Of war and
the restoration of normal conditions throughout the
world.
This continuance of our business activity can be
ideuty counted upon only if avoid the mistakes into
which exctements and their distortions of judgment
nay lead If generous TO allies and just to
our enemies the whole world can revive together and the
prosperity of the United States be assured
@Ihe belief that there VIII be drastic drop in prices
based obvious conditions With vast volume of la
Dor rapidly being discharged from uunition factories the
world to the production Of normal supplies;
With steel copper, COAL shipping and other essentials
aent temporary empoyes?) returning farms and fac
tories there VIII be immense increase in the volume of
goods available for civilian consumption Prices should
fail before this actual transformation is carried
because wholesale markets commonly forecast impending
changes
To very slight extent Dr. Anderson's forecast has al
ready true Prices of commodities already
coming down. These in clothing and food lines
They slight and in instances as not
stute accurate foIerunner of general change But
there Is wholesale revision downward these decreases
sboTe cited VIII have been the first.
general drop in commodity prices, under ordinary
conditions would widespread business disaster But
Tor example, there collapse of prices in the north
Wholesale prices averaged slump Of than 80 per
cent IN the six months from January to July, 1865. 0rdi
uaTy 80 percent drop would have general bank
rpty foT most merchants having bought goods with Dor
roed money could not stand the 80 percent depreciation
when they undertook to sell those goods They could not
pay their debts.
Bet Duu agency reported only 500 failures in 1866 as
against 1900 IN 1861 the first year Of the and the la
bSies Of those firms that failed in 1865 only
tenth the liabilities Of the firms failing in 1861 The fact
that the north weathered the storm well due to
io-eknowsdge and preparation Men knew It coming
and planned their financial affairs for crash It never
Instead, the activity of the north during the war
continued after the million in the north
army absorbed by industry, trade and sgricu
ture with little shock ard business activity continued
shated until the panic Of 1873 The south PROSTATE
for long time after the Ear, until industries to give
the south living developed but the north changed
froul var to peace pursuits with loss Of vigor
There is question Of lack Of commerce Rather
there IS beginning such tremendous demand for
products Of almost every kind that the of the
U1ited States and Of the world viii be taxed supply
them If prices down under pressure Of peaeeue
competition, bringing down wages also, it viii nevertheless