The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-08-26
PRICES WILL COME DOWN

pool or trust fails, and the rule of
supply and demand reasserts itself.
So it is that successful monopolies-
that is. effective control of prices
have always been short-lived
If, then, there is now a large
amount of idle producing capacity in
the United States or the world, it is
one of the surest indications that
commodity and goods prices will
come down, regardless of the wishes
or power of any man or organization.
In looking at our industries one by
one, it is observed that the amount of
idle producing capacity is immense.
We have capacity. for example.
to produce about 100000, feet
OF lumber per annum, whereas we are
turning out only about 30,OOO,OOO.-
600 feet. The aggregate capacity of
our steel plants is about 42.OOO,OOO
tons yearly, while we are producing
at the rate of only about 27,OOO,OOO
able to turn out 1000, 100000 pounds
of copper annually, but for lack of a
market they are turning out only
about 1.2OO,OUU,0 900 pounds.
Soft coal mines in the United States
nave an annual capacity of not less
than 5S6,OOO,000 tons, whereas they
are producing at the rate of about
4OO,OOO,OOO tons. Our anthracite
mines have yearly capacity of 90
oOo,OOO tons, and are turning out
only about S5,00O,OOO tons. Our cot
ton mills can produce cotton goods
enough to use up $4,000 bales of
cotton per month, but they are pro-
ducing only enough to use up 475,-
600 bales. The worlds 1918 produc-
ton OF grain and vegetables was be-
tween 20 and 20 per cent below ca
pacity; and its production of sugar
was about 100000 tons, or % per
cent below capacity.
Believers in the notion that present
price levels are permanent must fig
ure out in some way that all this idle
plant capacity and lot more is going
10 De Kept idle. 1t is easy enough to
show that producers In many lines
would make money by keeping it
idle; but the difficulty is that every
man wants the other fellow to cur
tail production and put prices up, so
! that he himself can turn out his full
output and get big profits on it. The
| cotton planters this year tried to cur
tail acreage by 80 per cent and sue
ceeded in cutting it down to only
about Z u per cent.
But the surest indication that this
/ plant capacity cannot be kept idle is
that the world has between $4,000
600 and 2O.000,O0O troops who are
now seeking unemployment. II they
do not obtain 1t there will be rioting
and .Bolshevism the world over. and
hardly ministry OF government any
where can stand. But if they do OBJ
tain the employment, idle plants viii
begin running again, and the supply
of almost every conceivable article
Will be SO increased as to reduce
| prices.
The only way prices can be kept
up is 10 keep the plants and factories
and producing capacity idle, and the
only way this can be done is to keep
the soldiers out OF Jobs.
IL is pretty good sized undertak-
! ing even for those who think that
| the world is going to be made over
to fit the bull market or to suit the
| profiteers
| However, even If there were no law
OF supply and demand, or if all the
statistics of idle producing capacity
were totally erroneous. we would still
| have evidence enough in the action
| OF the money market to prove beyond
| q reasonable doubt that commodity
| and goods prices are coming down.
Price levels are as closely related TO
the money market as ones car
| wheels are to the motor; and al
thoush the two are not usually
| thought'of together. the bull move.
| ment in goods prices cannot 90 on
| without the help of the money mar
ket any more than the automobile
can go without its engine
As prices go up it takes more and
more capital to finance the production
and distribution of goods For ex-
ample, the tanner must keep on hand