The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1919-03-14
FALLING PRICES are beginning

FALLING PRICES are beginning
to have some effect in stimulating
buying in certain lines, though the re-
ducrions have as yet hardly gone far
enough to cause general tendency to
enlarge purchases. In some of the
lines where production was curtailed
during the war-such as automobiles,
furniture, etc.,-marked activity is
now reported, due to the accumulation
in the demand which would naturally
follow the partial suspension of pro-
duction. The fall of prices thus far
has been gradual, and if this character
istic is maintained until most com
modities get back somewhere near
the pre-war level, the country will
probably escape any market shock as
a result of the reimbursement process.
Labor strikes have been growing of
late in frequency and magnitude, and
in some cases they have been accom-
panied by efforts to foment trouble,
bat these have been quickly oppress-
ed There is much opinion to the
effect that both wages and prices will
remain permanently at a higher level
than they were when the European
War began, but there exists little or
no well-informed opinion that they
can be maintained at the high point
II ached when the war closed. The
return of several millions of men
from military service to the pursuits
of peace is of itself a sufficient ex-
PLANTATION why wages will tend down
ward, and the withdrawal of the
Governments urgent demand for
supplies, almost regardless of cost,
| likewise constitutes sufficient reason
for a recession of prices. Fortunate
ly. the return home of the soldier has
in it compensating element tending
to modify the influences just described
While in the military service the
soldier purchased but few of the
commodities which he ordinarily buys,
and on his return to civil life this
purchasing power will again come in
to the market. The return of troops
from foreign service and the rapid
disarmament of those in the training
camps comprise an important part of
the REIMBURSEMENT process. When
these men shall have resumed, so far
as practicable, their accustomed en-
ployments, the labor situation may be
expected gradually to assume more
tranquil aspect.
The future of American railways
still remains unsettled, and the mo-
recent returns of gross and net earn
ings do not afford any comfort to
those who have favored continuous
operation of the roads by the Govern
ment. While gross earnings are
gaining, this gain is being more than
wiped out by additional operating ex-
lpenses. Sentiment now seems veering
in a direction which favors the early
restoration of the roads to their
owners, with some arrangement that
| will permit the earning of a fair re-
turn on capital and assurances of
reasonable rates to the public That
the experience under Government
operation will lead to some CONSOLE
dation in the instrumentalities of
operation seems certain.
Commercial failures continue so few
in number as to indicate that III
period have been passed with com
parative ease.
The War Revenue Bill has passed.
With this measure before them, bus
mess men are now relieved of the
uncertainty that has heretofore at
tended their attempts to estimate the
amount of taxes which must be pro-
vided for.
There have been some recent in
dications of a revival of building
Operations.
The public is beginning to realize
that prices are not likely to be lower
and may be. higher on account of the
present increased demand for mater
ials, which demand was weakened dur
ing the war because of the great re-
duction in construction work except
by the government.
Respectfully yours
| Il.