Evening journal., 1920-10-07

The 1ow Of money from the West
70 the East which even now should
be taking place has not begun I'm
measurable amounts. Until that money
gets back 10 the financial centcrs 10
VIII not be available for the use Of
Industry. and until that time comes,
industry IS not very likely 10 pro-
duce in quantities. that are likely to
exceed a strong demand.
In other words, while the high
cost OF living has been dealt'a body
blow, IL has not taken the count yet
by any means That high cost will
be defeated there is no doubt. but
the rapidly with which the della
ton OF artificial values through the
world can be accomplished. is mat
Ter OF considerable speculation. lndi-
cations are now that 10 will be a long.
drawn-out process extending over a
period OF at least three or four years
to come. The public itself has the
ability 10 hasten or 10 retard this
process. If universal thrift becomes
popular. as II seems TO have been do
ms during the last MONTH or two, The
process Will be hastencd materially.
II. on the other hand, the slight re-
ductlons in prices stimulate buying
TO a point OF eXtraVagance-a point
from which 10 has been a long time
In mOving-then financial Indigestion
Will result. and the healthy condition
into Which capital seems TO be grow
ing. viii receive a setback.
The future status OF labor is df-
flcult 10 foresee 10 Is quite certain
I that any material reduction in wages
Is improbable, certainly not unbl re-
tail prices have rccedcd considerably
below the level at which they now
stand But even II no reduction in
wages Is effected, the combination Of
circumstances which Is gripping in
dustry is going 10 have the effect OF
making the Industrial lahorer more
worthy Of his hire. Individual effec-
ioncy must be increased even multi
plled-and In many instances already
that has happened. When that condi-
tion becomes general. further price
recesslons may be looked for and
then the vicious circle" Will have
begun its backward swing.
After the Civil War DO took thir-
teen years 10 bring about that situa-
ton which has started It's accom-
! plishment within two years after the
| Great War 10 would be absurd, how
ever, 10 attempt TO draw any analogy
or 10 make any serious comparison
/ OF conditions that obtained after The
| Civil War and conditions today, be-
cause then 10 was the business OF the
United States only lhat was involved,
while today the financial structure OF
the enbire world is affected still 10
is a matter OF interest In which some
people may find a more or less de-
gree Of encouragement to know taai
commodity prices today are proper
tlonately cheaper than they were two
lffnr IIn DIIVrnn4nr nN "a
Appomattox.
The end OF This month will mark
the end OF the fiscal year for Armour
and Company. Looking back over
the year. many ups and downs OF
business can he seen 10 has been a
very trying one with a constantly
shifting market on which 10 base
values. and a very erraic demand for
packing house products. due in large
part TO the cessation Of export trade,
which resulted in some curtailment
OF volume Of output.
We go into The last month OF the
year with a degree Of optimism be
cause we feel that the eOpacking indus
try has gone throueh y the worst Of
It's trials and that the processes of
readiustment affected our industry
among the very FIRST. so that by now
the future gives promise Of greater
stability In this business.
| Market prices on commodities have
fallen. II Is not a trend but a dis
| tinct development Of the industrial
denation which The nation now is un,
dergOing, and which involved tht
packing prematurely so that il
liquidation now has been accom-
plshcd The public should feel, a
once, the effect on retail prices o.
sweeping reduction that have beer
made during the last month in mos
basic commodity prices. The averag,
retail merchant is one who has
preached and practiscd the princlpl,
Of sale at replacement costs. Thre,
years ago IN the face of rising mar
ktt Ae began marking up his stool
on that basis. Today in the faSe o.
a falling market, { ohe consistent an,
TO be fair, he should base and Valu'
his stock on replacement costs.
Industrial Establishments made madl
concrete prowess during the mont
Just passed than they had made dur
ling any similar period since The en-
lof the war. Many Of the largest in
es-manufacturcrs Of essentia
commodities, eVcn-became recOncilel
10 the obvious fact that war price
should not be maintained longer 4
peace time And as a result, many o
them took tremendous inventor
losses and some Of them reflected IN