Evening capital news. (Boise, Idaho) 1901-1927, 1919-02-05
Effect of War and Cancellation
of Contracts Depressing Ma
ton Greatly, Says Wallace.
THOUSANDS OUT OF WORK
Retailer Also Effected as Public
Waits for High Prices to
Drop-Spirit of Saving In
culcated in Minds of People.

In the opinion of w. r. Wallace
general manager of the Idaho Power
company. who just returned from a
trip to the east in which he paid par
ticular attention to national affairs,
business conditions are very much un-
settled all over the country, and bid
fair to remain so for a period of at
least six months.
This condition is due" said Mr..
Wallace. 'entirely to state Of war,
which suddenly went out of existence
November II, with the signing of the
armistice. AS soon as the war pro-
gram Of the country was outlined and
Its needs recognized, the large manu-
featuring concerns of the nation We're
appealed to for assistance. They re-
sponded readily.
TELLS OF CONDITIONS.
Huge contracts that required addi-
tional machinery and buildings were
given them and short time set for
deliveries. This necessitated the Dor
rowing of much money to get ready
to handle the contracts. A number of
large concerns We're still in debt for
borrowed funds at the time of the
armistice, and found themselves with
cancelled contracts on their hands
Nothing definite has been stated by
the government as to whether the
obligations of the manufacturers so
caught will be assisted, and conse-
quently they are left to rebuild their
shattered business affairs neglected
necessarily by the urgency of war, and
also to fight possible ruin by being
unable to meet their financial obliga-
lions. Thus, it will be seen that the
large manufacturers is having to go
slow, and as result, thousands of
men are out of Work because the
period of reconstruction is progressing
very slowly, and there is no work to
be had.
RETAILERS AFFECTED.
THE retailer is also affected to
large degree. He finds that with no
work, his business is dropping off, as
people are prone to skimp a bit on
their purchases. Again, he is burdened
with stocks bought at large wartime
prices. and is facing the problem of
having them left on his hands or SELL
ing them at a loss to meet his obliga-
tons.
Then the bughear OF high prices
again enters the field in the mind of
the public. They are burdened down
with war obligations, such as bonds,
stamps, etc, and are trying to get
out of debt before they get in any
further. as the spirit of economy has
entered the minds of all in a way
never before thought of since all have
been taught the real worth of a dollar
during the war period, and the wise
plan of saving a bit for a rainy day
Again, the public feels that sooner or
later the huge prices on everything
must take a drop, and it does not feel
like buying largely with the prospect
of being able to get the same thing
a few days hence at a much lower
cost.
LOOKS FOR DEPRESSION.
another thing that the retailer has
ito contend with is the fact that great
many people, feeling that their stom-
achs would possibly suffer, bought
largely of food products and boarded
them up, despite the food admnistra-
tion's efforts to prevent such a thing. |
Now that the war is over, they are
bringing these stores into active daily
use, and are not going to purchase at
the high prices prevailing while they
can eat at a lower cost from their
stores of provender.
Take the proposition as a whole, I |
cannot help feeling that business in
this country is bourd to be depressed
in the large industrial centers for
some months to come, for house was
not built in a day, and it will take
time to get the large manufacturing
companies back to pre-war basis"