The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1920-12-09
WRITE orr the LOSSES.

A wcll-known and accepted financial author-
ity sad the other day that the only thing in
the way Of general resumption OF business
on a new and thoroughly sound basla WIS the
disinclinatlon Of everyone to take their losses
'"rhc losses are inevitable" said this man. "Nor
can they be escaped. They can be delayed by
incurrng the risk that they may become larger
instead Of smaller. But the underlying condi-
tions OF finance and commerce are such that
there could he an immediate resumption of
business generally II everyone would write off
their losses now"
That the statement was and is sound admits OF
no debate whatever. hut one thing stands In
the way Of general resumption Of business
excessive high prices all the way around Manu-
featuring concerns have closed thcir factories
because the trade In not buying. This nptwith-
standing the known fact that Wholesale prices
are far below what they were n few months as,.
The trade does not go into the market because
It IL stocked with goods purchased at u much
higher figure than now prevails In the whole
sale lines. Naturally there In a deadlock here;
n sort OF frozen condition In trade that is making
itself felt disadvantageously to all And the
ultimate consumer is purchasing very charity
because OF his general conviction that prices
ore higher than they should be and must come
down very substantially before the rcadJust-
ment can be considered complete.
What is true of merchandising and nanuiac-
turing Is also true OF the building trades and
conditions. There have been substantial de-
crcases In the quotations on iron and steel. yet
there has been little response. For the good
| and sufficient reasons that great nstructive
| enterprises are being forwarded at this time
knowing as their directing heads do know that
| tl.l
| Building materials. lumber and cement and
| brick and tho various decorative materials. are
In a similar state OF fluctuating uncertainty. 1t
IL perfectly idle and profitess for lumber dealers
to say there will be no decrease in prices. There
| has been and there will bo further declines For
they are justified by every known fact while
there Ia no acceptable reason for existing high
| prices In such lines
When tho basic commodities started on the
| decline the imperative order went forth for all
| commodity prices to decline. That order was
signed by human psychology and not by any
! Individual, which accounts for its imperative
| nature. TO argue that building materials cannot
| be reduced In price when the price OF bread and
| meat and clothing have declined almost fifty
per cent. is to argue like a very foolish person.
All values were very highly and extraordinar-
lily inflated when the readjustmcnt began. The
| adjustment Will not be complete until all
| values have come down in precise ratio. An
this Is SO palpabiy primary that 1t seems waste
OF time TO even state 1t.
There Is not anywhere the slightest justiiica-
tion for panic No condition that tends to create
! n panic exists The gentleman was well within
the facts when he stated that the only thing in
! tho way of an immediate resumption of business
and general prosperity Ia the Discrimination OF
| people generally to write off their LOSSES now.
1t is not n pleasant thing to think about but
too often In this life unpleasant things impera-
| lively command our attention.