The Cordova daily times. [volume] (Cordova, Alaska) 1914-1947, 1919-09-19
FRIDAY, SEPTEMBER 10, 1919
PRICE STERILIZATION SEEMS TO
BE APPROACHING

Due to the continued operation of
the factors which resulted in the
present high prices, sterilization Of
prices at new levels is approaching,
is the opinion expressed by the Ma
tional Bank of Commerce in New
York in it's market letter in the Sep
TENDER issue of the bank magazine,
Commerce Monthly. The bank says:
1T is the conviction of the business
world that high, or at least rising
prices, are evidences of a satisfactory
situation. This conviction has a
basis in fact, in that high or rising
prices stimulate increased produc-
tive and commercial activity. Our
high prices are unquestionably the
product of a worldwide curtailment
OF production and increase of con-
sumption, as a result of the war, of
those goods necessary to peace-time
life; of an increase in the circulating
medium and an expansion of credit
which the conflict through which the
world has just passed rendered inev-
liable; and of the increased margins
Of profit deemed necessary to meet
the risks involved in a period of ris-
ing prices. The era of extravaganza
which has followed the restrictions
of war has also been a factor in rails
ing prices. Then 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 meas
ured by demand.
Even though actual hostilities are
now ten months behind us, the causes
which have resulted in present prices
are largely operative and it seems
likely that sterilization at new
price level is approaching.
On periods Of rapidly-rising prices,
the commercial and financial activity
resulting is likely to increase out Of
proportion to the growth in produc-
tive activity on which it must ulti-
mately be based. Although the ac-
tual physical adjustment Of American
production to postwar demands has
been more rapid than the most opti-
mistic could have hoped production
has not yet expanded to what must
be its normal postwar level.
prosperity has but one possible
basis. That basis is production Vol
ume of business in tons and dozens
and bales is it's true measure. There
is now no fundamental reason to de-
increased to it's new peace-time pro-
portions can we rest in the assurance
that as far as it's effects on our eco
nOmic life are concerned, the war has
passed into history. To this end,
every man and woman industrially or
commercially employed must produce
tC capacity. Not only is production
essential, but capital must be accum-
u1Gted at a rate rapid enough to off
set the destruction which took place
during five years. The consuming
public must recognize that it cannot
continue Indefinitely the scale of eX-
penditure which followed as a reac-
ton from the self-denial of war, but
that thrift for personal benefit is as
essential as thrift for ones country.
When every individual capable of
gainful employment is producing to
capacity and spending conservatively
our economic adjustment will be COM
plete."
The steady expansion of productive
activities during the month justifies
continued confidence in a gradual re-
turn to normal conditions, Commerce
Monthly says In regard to the agri-
cultural situation it says:
"While the crop outlook is not as
good as it was six weeks ago, there
has been tendency seriously to over
emphasize the unfavorable aspects Of
the situation. The forecast for a
wheat crop of 94O,Oo0,0oo bushels is