Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1919-04-03
Low Prices and Prosperity.
rheo. H. Price, in Commerce and Finance.

The late r. Sanue cutler. whose posthumou novel. h WAY # All
'iesh," created literary sensation Il few years before the var said that
Progress resulted from he desire OF every organism to five beyon ITS in
mi Like man epigrams.t the statement Expresses a half truth. for such
progress as ignorant men. greedy animals n predatory nations are aMs to
wealth. fod Or territory, ad their belief that it can be obtained by superior
inning. strength ors strategy rather han hy fair exchange. Tho doctrine that
might make rsht is derived from this belief m litigation between men
!fshtlng TIVE animiis and wars between nations are its products. They
suit in progress, it is true. tut its cost is great nd its chief value is In he
:Actt that it is generally a demonstration Of the old truiNn that We M long
|au more than we u or. take more than we give
The faNacy that asserts the contrary results in various misconce
One of then is the idea that high prices oonnote prosperity.
Only recently at a meeting of prominent business men ad economists m
four or five years of commercial depression When this tatement vas chai
henged ant it vas pointed out to him that the vey reverse was The case he at
I aptedto Justify himself by referring to the decline IN commodity prices which
i"a nearly always occurred after zach war. Without looking farther he had
- Sun hat rising prices We're symptomatic of rosperiy am faing prices
o. the reverse.
So universal is his msbenef IN tbeforep people Will admi Tho contrary it
imtn, lately succeeding the Napoleonic wars weret those of Enslands greatest
prosi fity up to hat m thai from 1855 to 1873 there va unprecedented
actvIJ ad expansion in the United States and tina aMerh ar defeat by Ger
man. ID 1871 France commenced to accumulate wealth more rapidly than w
N her history.
TI-a accuracy of these Statement may be confirmed by ef9ence IL he
hstrt al citations that are to be found In an article headed *Do Wars Really
Cos @rythtne"" published N Commerce INT Finance March 81. 1915 We're
not iw its length w should nw repubnsh h artce for the benefit OF hose
who . still obsessed with the ideat that rising prices are he exponent Of
good tnes." They are in the sense that the stimulation of alcohol creates
a n ii Ion OF a good time" but in thats nse alone. M we Ill know that it
is OIL when the stimulant ia withdrawn N we & o soberly to work ht we
|becc. te efficient and accomplish anything worth while.
'.el prosperity Of the post benum periods referred to. and of nearly all
othe: ootb elum periods was coinddent with m vas in fact d e to he fall
in p.i IS Conveniently regiNered.b because lower prices mean a reduced costo OF
NJ Il excess of earnings over xpenses for the individual The result
lis q s!rpus for investment or for tn purchase of things not reyiouNy bought
AM g corresponding addition to the worlds wealth Or the volume of its trade.
A general rise in prices can benefit no M because it nus
mean :" corresponding rise in the cost IN Il reducuo n he volume OF produc-
ton. .he percentage of profit being the same can it always ten;s toward the
minmstm), tn Aggregate gain is smaller, fewer people aree employed and indus
IL W could selw ha we produce at hgh prices md buy VIVA we consume
at low prices. the former might be beneficial Ito the individual but this is i'm
possi e. ant hose Who thinko otherwise belong to he class IN snoran,ly try
to &C. something for nothing ad think that they IAN progress at the expense
OF heir fellow men