Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-06-23
BANKERS DON'T
LOOK FOR DROP
in PRICES NOW
Taxation and High Cost of Labor
VIII Keep Level High, Say
Nations Piaanciers.

Replies from bankers to a cir
cular letter sent out by the depart
ment of labor, requesting views as
to the probable future course of
prices, indicate that there is little
expectation of any material decline
except in certain products.
J. Ogden Armour made the de-
claration that the greatest danger
to economic structure arises from
the fact that many do not recognize
the new higher level of prices,
cost Of labor and high taxation
Falling prices, he said, when reach
ing the point where profit ia elm
mated, mean panic, depression and
Nothing in the labor situation
warrants anyone in expecting ma
terially low cost of commodities
in general and in building in par
ticular." he said Wages will not
be less for several reasons, the first
being the stoppage of immigration
during several years due to the
war; rentent.o1 Of workers in the
naval and military services; the
creation OF new industries. such as
shtpbuilding, dye works and others;
the urgent demand for building
held back by the war activities,
and the shortage of the worlds
food supply"
New Level of Prices.
A new level of prices has been
established, from which there can
be no material recession until in
ventive genius succeeds in CORES
pondingly increasing labor's pro-
ducttve capacity by mechanical
means, he declared.
Major General George w Goeth-
ais declared that the United States
can return to neither pre-war con-
ditions nor the pre-war prices.
Every Thoughtful employer realizes
that the wage Garner is entitled to
a proportionate share of the COM
forts of life, ad every thoughtful
buyer should realize that the price
he pays for goods must be in pro-
portion to the increased price OF
labor, he said And labor consti-
tutes over rs per cent Of the cost of
most products.
Jacob H. Schiff of Kuhn, Loeb &
Co., of New York, showed that from
May to October, 1918. commodity
prices in this country advanced
about lot per cent; in France they
advanced 235 per cent From Oc-
tober, 1918, to March. 1919, in spite
of the violent cry for lower prices.
the decrease was an average of
only So per cent. and in April,
some ommodities increased in
cost
NJ CoL;R ara-iY,oz t41baw costs
to the lack of labor and the vast
age of war. However, he declared
even such conditions are better
than the bright OF inactivity and
stagnation with rapidly falling
prices. He declared. also, that
many people whose incomes have
their expenses complain that high
costs should apply to the things
they have to buy as we'll as to the
prices they receive for their own
commodities.
Recalls Civil War Prices.
Theodore N Vail. of the Ameri-
can Telegraph and Telephone COM
pany stated that prices rose rela-
lively more during the civil war
than today, and the drop was at the
rate of less than Per cent year.
Coleman du Pont believes that
wages will be higher after things
have settled down than they were
previous to the war. because wages
have been increasing steadily for
years.
The consensus of opinion in the
replies showed that prices will un-
doubtedly decline. but at a very
slow rate. and possibly will not
start downward for some time. The
statement was made that Europe,
being stripped Of food to such an
extent that It would take more than
the 1919 crop even to start a re-
balancing, food will remain at a
high level, and labor in conse-
Quence. There exists in this coun-
try a tremendous demand. which
will not materially decrease until
Europe returns to a more nearly
pre-war status OF production