Evening star., 1920-02-22
REASON TO THINK H. c.. l..
WILL BEGIN DROP SOON
Sidns Indicate Lower Price Level Will Be
Attained Without Panic or Industrial
Disaster.

ton and larger proportion Of raw
machinery and fabricated iron and
steel.
This will call for a readjustment OF
American industry and will result IN
temporary displacements which Will
work hardships. in some lines, to en-
ployers and employees alike; but the
let-down in industry is not likely TO
be greater than will bring conditions
back to normal. Many mills will
have to change the character OF their
outputs; workers in some lines will
have to seek employment in others.
But there appears no reason to lear
that there will not be jobs for all
who want to work. or that any con-
siderable number of industrial plants
will have to bank their fires.
This, in a sketchy way, is the part
changed European conditions are to
play in the lowering of prices in this
country. Changes are taking place
in the United States, too, and generally
they are changes making for lower
prices. The war depleted stocks Of
foodstuffs and of articles of everyday
consumption in this country as we'll
as in Europe. These depleted stocks
gradually are being replenished. and in
some lines evidences of a surplus are
beginning to appear.
. Lower Meat Prices In Sight.
For example, the meat packers. who
a
NAL export trade at inflated prices,
now find their volume Of exports re-
-duced to below pre-war levels and
their storage houses are becoming
choked with products. They are
faced by the alternative either OF
stimulating domestic consumption by
reducing prices or of curtailing their
outputs. The latter course would
serve only to back the animals up
on the farms. and while it might de-
lay it could not avert the inevitable
drop in prices.
AS a matter Of fact. despite the un-
precedented export demand resulting
from the war, there are more farm
animals of all kinds in this country
today than there were in 1914. and the
present high price level could be
maintained only by a continuance of
an abnormal export demand or by
unlawful manipulation. The work
ings of economic law in Europe have
removed the abnormal export de.
mand. and 1t is to be assumed that
the agencies of the government will
see to it that operation Of tina crirai- |
nsl law in this country prevents the
unlawful manipulation.
Needless AlaRm Over CroDs.
Some unsasiress has resulted from
talk that fafmers the coming season
would 50 reduce their acreage that an
acute shortage in foodstuffs would
result. But when farmers talk Of de-
creased production they have in mind
q decrease from the artificial produc-
tion stimulated by the war. Europe,
outside Of Russia. is going to plant q
larger acreage this year than she
ever planted in. pre-war days, and q
decrease from the wartime acreage
in America Ia not only a natural, but
a wholesome tendency. There is no
occasion to fear that the crops will
De lnSuulCteuI 1OT uOIuS HeeQB
Labor. 1t is true. continues to agi- |
tate for increased wages, and every !
increase in wages operates to hold
back reduction in the cost Of living |
But labor. at least it's better informed !
leaders. knows that further present
increases in the general level Of
wages are undesirable, It,is difficult
to quarrel with labor's contention that
if initial losses must be taken in the
process of readjustment. capital
rather than labor should bear these
losses. In the readjustment now set
ting in the initial losses must be
borne inevitably by capital. And
when labor sees that capital actually
is bearing these losses. and not pass
ing them on to the consuming public.
1t is reasonable expectation that
there will be let-up in the demands
of labor for an increased wage.