The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1920-10-27

that altho the consumer generally
has felt very little relief from the big
cuts that have been made in prices
during the recent weeks, the wave
of reduction is a healthy sign and
must, in time, have decided effect
on the cost of living.
The fact that the weekly house.
hold expenses of the consumer have
not been materially lessened is attri-
buted to the desire of the retailer to
protect himself and to sell his pres
ent stocks, bought for the most part
at higher prices than now prevail, at
figures which will not show him q
material loss. When these stocks
have been disposed of, then the re-
taller will be abe to purchase at
lower prices and consequently the
decline will, or at least should be
passed along to the consumer.
Bankers characterized as absurd
the talk which is being heard in the
south and west to the effect that pro-
ducers of cotton and wheat, particu-
larly wheat, are planning to hold
their products for higher prices.
They declare that wheat, which has
not declined in proportion to other
food products, must go lower, even
tho the downward movement does
not take place Immediately.
Will Make Living Easier
J. S. Bache, head of the banking
firm of J. s. Bache & Co., declared
recently that in his opinion the cost
of living is bound to be affected
sooner or later by the declines in
prices which have characterized the
commodities markets for the last few
weeks.
"While the decline in all commid-
tiles which commenced some months
ago." he said, and in some in
stances has reached point which
for the time being at least, is ex-
aggerated, it will ultimately have it's
effect on the cost of living. Every
effort will be made by the retailer to
sell his present stock, bought at
higher prices, without loss; but the
world is under notice that deflation
is in full effect and is bound to con-
tinue.
Wheat is almost the one excep-
ton, in that its decline has been no.
where in proportion to other food
products or basic commodities, and it
cannot remain that exception long,
even though it be true that this is
the one product that Europe must
have. Any effort by the farmer to
hold will only ultimately accentuate
the decline, since it is an attempt to
repeal the law of supply and demand.
knowing nothing of the technical
speculative in the wheat market con-
ditions l could not venture predic-
ton as to my immediate movement
in it, but / am convinced that it will
gradually get nearer pre-war prices
whether the crops be large or small.
"The tendency of all buyers is to
hold off in a declining market, usu-
ally missing their opportunity, and
thus we have the almost total cessa-
ton of buying by department stores,
iobbers and retailers. This will go
far in the end, but in the meanwhile
it can have but one result, and that
is the gradual decline of such articles
as may be compelled to find a
market"
Decline Must Continue
A. Barton Hepburn, chairman OF
the advisory committee Of the Chase
National Bank, also expressed the
opinion that the decline in prices has
not run it's full course, altho he does
not expect to see pre-War levels
reached in the downward swing. He
characterized the price cutting move
ment as healthy reaction from the
most unhealthy imitation" and de-
clared that until safe and sane
level has been reached business will
not be warranted in branching out.
II regard the price cutting wave
that is beginning to sweep over the
country" Mr.. Hepburn said, as
healthy reaction from the most un-
healthy imitation Of business which
the world war brought about. Every
one was profiteering. There was no
competition in selling goods. That
is to say, there was no attempt on
the part of vendors to make their
goods attractive to buyers by fixing
a reasonable price upon the same.
They simply charged all they
thought they could get and the pub
lie paid the price willingly without
protest, each one in turn seeking to
square himself by advancing the
price Of whatever he had to sell, be
the same labor, raw materials or
manufactured products.
Business experience already saw
that this condition could not last.
Even the man without experience
was able to realize that production,
distribution and prices were all abb
normal. A decided recession was
not only in order but inevitable to
place business upon a sound and
healthy basis.
ut is probable that prices will not
reach a pre-war level because of the |