The Cook County news-herald. [volume] (Grand Marais, Cook County, Minn.) 1909-current, 1919-03-19
GOVERNORS AND MAYORS
GET BEHIND CAMPAIGN

- Et4 - -
70 Stimulate Business Through
Building and Cons struction ~
Sss@z. .i. .. ..s Ess,s Works. 4 ..,
The Governors and Mayors in at
tendance on the recent Washington
conference appear to have been con-
vinced, pretty generally, of two
things: There is to be no immediate
or marked reduction in the price Of
building materials and labor wages,
and an Immediate resumption Of
building and construction activities
throughout the country, more than
any other one. thing, is essential If
business is to get back to- the "as
usual basis Of peace, or the "better
than usual possibilities of the pres
ent and future.
Some went to the conference be-
lieving materially lower prices
might be had if the Federal Govern
ment would "just do something" F."
Others were convinced, that the sit
uation would take care of itself if
the Government would. do nothing
but keep it's hands off business and
Let the law Of supply and demand
run it's course. These latter were
disposed to believe prices in the
building and construction industries
were too high.
l. For this reason a statement bv
Prof. Irving Fisher of Yale Univer-
sity, an acknowledged authority on
price and market conditions, in
which he says the United States has
reached a new price level and it is
doubtful if prices ever again will &c
back to the pre-war level, was read
with interest. Prof. Fisher says that
one certain way to bring about bust.
ness stagnation is for everybody tc
wait for business to get better
Prof. Fisher states it this way:
"The fundamental practical ques.
ton confronting business men is
whether the general level of prices
is going to fall. In my opinion, it is
not going to fall much, if at all. We
are on permanently higher price
level and the sooner the business
men Of the country take this view
and adjust. themselves to 1T, the
sooner will they save themselves and
1 the nation from the: misfortune
which will come, if we persist il
our present false hope"
This international authority or
| prices shows there have been times
in history when new price level!
were established. He says: y
| The general level of prices depends
upon the volume and rapidity Of
turnover Of the circulating medium
in relation to the business to bt
transacted. thereby. If the number
Of dollars circulated by cash and by
check doubles, while the number o1
goods and services exchanged there
by remain constant, prices will dou
BILE.
a.; E'The great price changes in his
tory have come about in just thi.
manner. The Price revolution od
the sixteenth century came upo1
Europe as a result of the great in
aux of gold and silver from thu
New World. Europe was flooded
with new money. More counter!
were used than before in effectine
exchanges, and prices became high.
People talked then of temporary in
hation,' just as they talk of it now
But it was not temporary; it wa!
a new price level. A similar increas'
in prices all over the world occurred
between 1896 and 1914 following tn
discovery of the rich gold fields. o:
South Africa, Cripple Greek, ant
Alaska, the invention of the cyanide
process in mining, and the vast ex
tension of the use of bank credit"
Il After analyzing our gold suppl
! and credits and pointing out tina
prices in Europe are higher than il
America, Prof. Fisher arrives at thi
conclusion: 49,
Business men should face tn
fact. To talk sreyerently Of 1881
, prices lis to speak a dead languag
today: The buyers of the country
since the armistice, have made a
unexampled attack on prices throug
their waiting attitude, and yet pric
recessions have been insignificant
The reason is that we are on a ne1
; high price level, which will be foun
Ia stubborn reality. Business me
! are going to find out that the Glove
man is not the man who waits, bu
the one who finds out the new pric
! facts, and acts accordingly =
!. At the same time Prof. Fisher
!. conclusions were made known ther
came from the Division Of Publ
:, Works and Construction Develor
81 Iment of the II. S. DEPARTMENT. q