The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-01-31

stopped buying o. account OF the nth-
ulous prices asked. In the hearings
before the spcciai committee appoint
cd by Governor Smith. 10 bring about
q settlement on the wage demand. ono
dealer said that before thu armiaticr
he made "a custom-madc suit for $50
Today the cheapest suit he make
with the same materials costs Slp5
of this, 500 had 10 De paid Tor labor
Customers who used 60 buy three or
four suits no "a time hesitate on one
nov. on accouut of the higher prcc
The consumer refuses to be mad,
the gOut ms longer, ana has stopped
buying. Since November. 1919 tho
volume of business boz tho trade. 10 Is
claimed. has fallen OF go pen o.u,
and the retailer has been forced 10
cut of his profits To- get rid of his
goods
ono dealer asserts that there BIZ
very little buying ruiuE ON. because
OF the torbidding prices asked hy the
grades. and predicts failures all over.
the country 10 prices do not take q
Aharp full, and That 30 per cent ut the.
men Do the Industry will 20 out OF
business.
In this business u would uuprar
that Inc public is making 20 stand
against hirh prices b, stopping pur-
ghdsgz. This BIS one ,UfD ION hIlu
prices % u sure one. however dIs
trcs-iug 20 the industry
Liberty Bonds QUO source Of Ia
trayuganrr.
a great part OF the extravaganza
OF the COUNTRY is due Co the Liberty
bonds. Twenty million pcupi, invest
ed iu these, and now nud themselves
with e deprecated security on hand
The tendency BE- 10 get riI OF nrr
thc} are doing 10. l"ufurtuuHtrlN. Iu-
stead of learning tu invest and br
thrifty, they are hoiuE led 90 o|Nfrr,f-
guutr This Dos mother uraumyuT Tpr
funding the bonds hy exchange uIu
Il Ions term security. Offering au lt-
t%rartiNc rate OF interest fur e time
The bonds would then become mon,
valuable and would Increase 900 price
the tender fN 10 pay them OUT u-
currency. would be checked a4 the
new bonds would prove 20 really ut
iriyiiNe Investment. aud the disucsi.
ton would be- TO hold them.
Tn-laN'~ Problems.
Credit expansion has reached iu,
limits Ui safety. Control cot his ca.
pansiou h 900 The power OF tn, Federal
Reserve bank u credit ls curttiIpi
bN higher % higher interest rates.
there VIII Dee more or less ructiou. but
VIII hr 10 process of putting ON th,
hfakcs gradually instead ni letting tht
speed continue and landing the tram
ln the ditch The nhlcst Kind OF utopI
huhktnE ability De- needed ut this
Juncture.
Congress has before 1t two of IN,
most important tasks OF th, century
D rehabilitation uf railroad credit
and the reform OF the ;uA law. Ca.
less ihr railroads ufc put under lolis
lHtion which VIII allow great profile
ana the. building OF large HUTuIuHta
their credit cannot boz restored To- Ifr.
u " load now. The VNDcss profits
tax IN % destroyer ct enterprise. thrifi
aud investment and 10 broods oNtr1y-
Hgancc Nothing be- htluE done
about 10,
Reminding of tho wlr bonds uf 90,
government is an urgent Requirement
.ut the Bscsunt time us t matter ul
Justice tu the patriotic investors ui
the country Whu have seen tho bond.
materially decline ON their hands uu.
ure Induced. unreasonable. tu u,I r.
of them dnH spend tho proceeds tHls
adding 60 the tidal cNtrntaguuuo.
tuiuuuiuE Dos also advisable Iu or
der tp relieve tho banks ut 10 mass col.
frozen credits which have mo- place Dol
huge volume 900 bank loans.
Rising Discount Rates uEd the Ninrkr,
Inc important step towards delta.
Ilou involved m raising the fedora.
reserve discount rate un commercial
paper 10 q per cent, should hulo ar
eject In materially reducing MGR
Chuudlsu speculation ana Iriurfut
~ ITO NV AN 800 If"N
volume Go affect prices This. how.
ever, may h' moro gradual than ga
pDrtrd n VIII hrlp bankers tu WORK
seriously in rurtailinr u-nueressHr
loans. and It lower prices boz cnmmu
iiNcs follow, wholesale merchants uut
retailers Will ho more inclined TO up
prcCintc the situation n they are bor
roWCrs against speculative goods.
Tho desire of the government. G,
make 20 war loans cost the loves
rate of Interest, enlisted the cuupsrI
ton OF the federal reserve systcm
and % situation OF ease iu the moup'
market was produced The cuuruou
supply OF credit Boa the federal rp
serve ~ stem thus was placed Ht an.
convenience. not only of the govern
mont but Of merchants and mHuufuc
tuners Hs well and inclination Io spec
ulu f, lu commodities grew npulc Thu
all. mo- doubt helped toward 1 sue
rcssful financing OF the war. bur D
also launched the country into an cri
Of initiation which exists now Prob
ably n, immediately after tho urnis
ttco5 The clamps has hcen put ON a
II nov being done, imitation Woull