Omaha daily bee., 1919-03-28
HIGH P RIGGS
STATE OF MIND
FOR PRESENT
John Latenser Points Out
Psychology Of Profiteering
and Suggests How Rem
edy May Be Applied. /.

John Latenser, we'll known archi-
tect and builder of the court house,
the Brandeis blocks and other of
Omaha's monumental buildings, has
this to say on the subject of high
prices, whether for building ma
terial or other things:
"The present industrial condition
requires readjustment in the sense
that this or that commodity has
been raised in price out of proper
ton to prices of other commodities
for reasons resulting from the war
period. This reason may haye been
excessive demand or it may have
been profteeering
To the extent that the prices of
some commodities require lowering
to basis consistent with peacetime
supply and demand readjustment
must taAe place.
3 But, generally speaking, the
problem before US is the adjustment
OF prices-that is, the prices of
commodities must be adjusted to
new conditions resulting from the
war These new conditions are ma
tlOnal and not local.
What Makes Prices.
Just as before the war, the prices
of commodities were dependent on
the cost of the raw material, trans
portation and manufacture plus the
cost of distribution and profit, so
do the commodities now depend on
those items We now find that in
adding these items together at the
present day they foot up to larger
sum than they did before the war
period, and the question is how the
total cost can be reduced.
1.-THE price of raw materiaP-in
some cases obtained locally, but in
most cases transported here-is
more or less 4 national question.
THE second item, 'transporta-
ton, is wholly national question.
Third, 'manufacture'-mostly ma
tional, some local.
Fourth, distribution and final
profit" are local questions.
From this it will be seen that the
prices of commodities are generally
nationally influenced. We can influ-
ence locally such commodities as are
based on local raw material and we
can influence only the cost of local
distribution and final profits of those
commodities which are transported
into this territory.
From the above it will be seen
that the prices of most commodities
cannot be locally influenced no mat
ter how good our intention and pur-
pose may be. In other words the
high level of prices is nationally in
fuenced and not local.
II now come to the second and
very important phase. Just as in
panic the general state of mind tends
to lower prices beyond all reason
so in the present state of aff1uency
Nand abundance of money a state of
mind has been created which has
gone to the other extreme.
State of Mind.
1--WE have raised the prices for the
sheer pleasure of raising them. Ex-
cessive proht-taking has become a
state of mind inversely comparable
only to a panic. This atmosphere
of high profits must give way to a
live and let live plan and the gen.
eral law of supply and demand must
be honestly allowed to take its
course. A rich harvest will then be
in sight. Satisfactory results in
profits must be aimed at through a
large volume of business.
1--WE have behind us a long period
of time when the natural require
ments in the increase Of population
and the requirements of the natural
growth of business housing have not
been satisfied. The increase in pop
nlation by birth alone in this coun-
ivy amounts yearly~to from 2,0O0,0 600
to 100000 and the increased re-
quirements in the shape of additions
and betterments in industrial hous-
ing is enormous. In other words
we are from three to four years be-
hind in our home and industrial
building" &