Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-09-06
STERILIZATION
OF ALL PRICES
1SAPPROACHING
Costs Of Living Necessities viii Be
On New Level Is Opinion in
New York.

Due to the continued operation
Of the factors which resulted in
the present high prices, stabiliza-
ton of prices at new levels is ap-
preaching, is the opinion express
ed by the National Bank Of Com
merce in New York in its market
letter in the September issue of
the bank magazine, Commerce
monthly. The bank says:
at is the conviction of the bust
ness world that high, or at least
rising prices. are evidences of a
satisfactory situation. This con-
viction has basis in fact, in that
high or rising prices stimulate in
creased productive and commercial
activity. Our high prices are I'M
questionably the product OF a
worldwide curtailment Of produc-
ZION and increase of consumption,
as a result of the war, of those
goods necessary to a peace-time
life; of an increase in the circulat-
ing medium and an expansion of
credit which the conflict through
which the world has just passed,
rendered inevitable; and of the in
creased margins of profit deemed
necessary to meet the risks in
volved in a period of rising prices
The era of extravaganza which has
followed the restrictions of war
has also been a factor in rising
prices. When the buying public
seems not only willing but anxious
to purchase, regardless of cost,
prices respond as a result Of what
appears to be a shortage Of stocks
when measured by demand
Even though hostilities are now
10 months behind us, the causes
(which have resulted in present
PS5ces are largely operative and it
seems likely that sterilization at
a new price level is approaching.
I'm periods Of rapidly rising
prices, the commercial and finan-
cial activity resulting is likely to
increase out of proportion to the
growth in productive activity on
which it must ultimately be based.
Although the actual physical adj
justment of American production
to postwar demands has been
more rapid than the most opti-
mistic could have hoped. prOduc-
ton has not yet expanded to what
must be its normal postwar level
Prosperity vs.. Production.
Prosperity has but ont possible
basis. That basis is production.
Volume of business in tons and
dozens and bales is its true meas
ure. There is no fundamental rea-
son to deter production and not
until it has increased to its new
peace-time proportions can we
rest in the assurance that as far as
it's effects on our economic life
are concerned, the war has passed
into history To this end, every
man and woman industrially OF
commercially employed must pro-
duce to capacity. Not only is pro-
duction essential, but capital must
be accumulated at a rate rapid
enough to offset the destruction
which took place during five years.
The consuming public must rec
og1ize that it cannot continue in
3Rhnitely the scale of expenditure
which followed as a reaction from
the self-deniaI of war, but that
thrift for personal benefit is as es-
sential as thrift for ones country
When every individual capable of
gainful employment is producing
to capacity and spending conserv-
atively. our economic adjustment
will be complete"
The steady expansion of produc-
tive activities during the month
justifies continued confidence in
gradual return to normal condi-
tjons. Commerce Monthly says In |
regard to the agricultural situation /.
it says:
while the crop outlook is not /
as good as it was six weeks ago, !
there has been a tendency serious /
" to Over-emphaSize the unfavOr- /
able aspects of the situation. The |
forecast for a wheat crop of 940,- /
600, 900 bushels is still well over
the estimate for the same date a |
year ago. and while the corn crop |
is still a large yield. 2,7SS,000, 900 |
bushels. Oats will probably even !
vet be near an average yield. The |
.cotton crop will be short, but this |
fAct must be considered in relation .
to the large Carry-Over. Summar-
iZing the entire agricultural stu
alton. it is satisfactory and not !
only will the buying power of the
agricultural districts be ample, /
but they will also have a surplus
for investment"