The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-05-25
GOVERNOR GIVES OPINION
AS to Cause Of Present Initiation OF
Prices.

Columbia. May 20.-Under-produc-
ion, the plentifulness OF money and
the extravaganza in buying are the
primary causes Of the present m
fiation of prices, according to Gov
erlor Cooper, in a letter to Colum-
bia newspaper man. The reduction
Of costs. in the opinion of the eXecu-
tive, lies in the purchaser buying
only the necessarles.
The letter says:
MIR. w: j. Cormack, The News and
Courier Bureau, Columbia, S. Z.
Dear Mr.. Cormack: In your re-
cent letter YOU ask me to say Wnat,
IS see it, can be done 10 reduce the
cost cf living; and whether or not l
regard the Overall Movement as
e;ficac;ous. This movement, as i
understand it, means that men Will
practice economy in the purchase Oh
clothes. 1t is at the least, symptom
of economy, hence has potential good
in it. The plan, of course, is not all,
embracing, and standing alone, could
not have any great effect, except, per
hans on the price of clothing. If the
idea. however, is kept alive, and men
stav faithful to it, the result will be
less purchasing of clothes, and there
fore less demand for clothes. This
will have a tendency to rearrange the
relation between supply and demand,
and thus bring down prices.
Speaking broadly, we need more
production an uless consumption IN
order to reduce prices. But the law
Of supply and demand is not the
whole story. If left alone, this law
would mean that when one purchases
an article the price paid would be
cost price, plus only reasonable
profit to the makers and distributors.
But prices are what people Will pay,
and if people will pay an enormous
profit, then the prices are hlgher
than necessary.
"The chief causes or hig h prices,
believe. are under-production, extra
vagance in buying, the plentlfuiness
of money, the ease with winch loans
can be made (this factor is not so
pronounced now as it was few
months ago., the demand for luxurres
the demand for artificial amusement,
the enormous amount Of money ex-
nended in wares not essential as 1000
or clothing, the high taxes made
necessary by the war, which are aao-
ed to the selling price of commodities
and the rather general loss OF a sense
of the value of money.
"Within few years, the standard
If living has gone away up; IN facT
has advanced so swiftly that we could
not accommodate ourselves to IL.
Along with this advance there are
many minor features which are not
wholesome, though elevation OF the
standard of living, considered as d
whole. is always desirable. Person
ally. rejoice that men who formerly,
v.nre restricted in their interests ana
their means are now enjoying fuller
life. refer especially to the labor
er and the farmer.
"Concerted. intelligent action or
the part of the public could WITHIN
short time bring down prices. sup
nose each household would restrict II
self to necessities? Suppose tnrl1'
should be generally practiced? Sup
pose men, in these days of plenty
were laying aside a few dollars
against the time when money VII
return ito it's normal value? We can
not have all the comforts and man!
of the luxuries of life, we cannot ride
to and from work even when we live
but short distances, we cannot bu!
entertainment whenever we feel tn
need of recreation, we cannot give tn
children dollars to spend where Tor
merly they had pennies, and not pa
the penalty. This penalty is inflated
prices.
"The thing for us all to do is tt
cut off the unessentials, cut down th'
amount of money used in non-produc
tive activities, develop the art of be- BE-
, ing happy without the aid Of costl!
artificial auxiliaries, get hold OF eco