The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-09-10
ON THE RIGHT ROAD.

II labor thruout. the country will
unite with the railroad shopmef in
maintaining a ninety days truce,
pending the success or failure of the
government to reduce prices the prices
will come down regardless of the gov
ernment's efforts. Stabilized wages
and continuous work by all hands will
do the trick.
An interesting review of the trend
of prices and the causes thereof is pre-
scented in a bulletin issued by the Ma
tional City bank of New York. 1t fol-
lows:
Following the signing of the armi-
stice came several months of uncer-
tainty about prices. The government
dropped out of the markets as a buyer.
IL was known to have large stocks of
supplies which 1t would have to dis
pose of, the millions of men in the
army were to be returned to Industry
and the war industries were to be de-
modified; the general conclusion was
that a fall of prices must follow. A
rush was made to cancel orders. fur
Their buying was suspended, produc-
ton was curtailed and a serious period
of Unemployment was threatened.
The situation, however, was stronger
than appeared. Stocks were light, and
as retail business continued heavy,
merchants had to buy quite freely in
the spring. The European demand for
foodstuffs raised prices for these COM
modities. and this made any general
reduction of wages and of industrial
costs in the near future improbable.
AS the situation became more settled.
conditions revived. goods proved to be
scarce and prices tended upward.
] Such a movement is cumulative, and
by the first. of June. stimulated fur
Their by good crop prospects, the coun-
try was in mood to buy everything
from good clothes to automobiles, and
all fears of period of unemployment
had vanished.
In the latter part OF June and July
the crops were seriously hurt. Three
hundred million bushels were. marked
off the wheat crop from the high esti-
mate, the other small grains all suf-
fered and corn was threatened with
disaster. This development radically
changed the situation as to the PROS
pective food supply. Instead of hav-
ing a surplus which would fiji UP the
empty bins both here and in Europe.
and bear the price as a known surplus
always does. it was to be for another
year close matching Of supply against
demand. OF course prices responded. In
time of threatened scarcity everybody
wants to make a little more certain
provision than when there is an as
sured surplus Consumers do IL and
dealers do It. just as they all abstain
from buying when there is a prospect
that prices will go lower.
The June exports of the United
states were on an enormous scale and
this foreign buying had an influence
on the markets. notably upon food
stuffs, leather and textiles. There was
something like a scramble on the part
of merchants to place orders for fall
goods, and considerable extravagant
talk about the prices which clothing
and shoes would command next year
Early in August came the demand
of the railroad orders, couched in
threatening language and suggesting
the possibility of a strike which would
shut down the transportation facilities
OF the country. Following in its wake
was an epidemic of strikes. based upon
the cost Of living argument, the whole
proceeding tending to promote excite
ment and ill-considered action.
1t was probably desirable. in view. of
the fact that food must remain high
for another year, that official action
should be taken to supervise the sit
uation, and thus give assurance that
they will not be higher than the con-
ditions make necessary. So far. how
ever, the actual results of official ac-
tivity are not important, and there is
Of uniformed prosecutors may Sc
riously disarrange the proper pro-
vision for next winters supplies