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

tffom the Bachc Review, New York;
The decline Of speculation In the
stock market. although II may not
last, has called the attention Of the
country to the action taken by the
Federal Reserve bank to curtnil credit
expansion and the reasons FOR this Gc-
uon-namely, the approach toward
the danger line OF credit supply. IN
this way the public has become ready
to be instructed on tho whole subject,
Including that OF dcfiuuon und it,
consequent effects.
Il Is OF the greatest Importance that
the people, especially the Dizziness
public, should understand the causes
OF imitation. be able 60 recognize It's
presence, aud 10 steer Incir various
Enterprises to avoid disaster when de-
itsuon actually begins. on "a rising
price market. business becomes more
and more active, but when prices
reach the high point and begin to de-
cline, the contrary is true. business
falls on aud becomes no longer profit
able. Undoubtedly. as Professor Jos.
81 b French johnson said lu q recent
Address. the great influx OF geld into
this country during the war % the
use OF 70 20 produce multiplied credit
has stimulated the demand. increased
the number OF buyers who were able
TO obtain credit. and advanced prices
accordingly. We doubt u imitation %
this country has yet reached IL peak,
but q Is none too soon TO begin to
prepare for the Guwnhill expedition
which must inNoluntnrily ana iucNl-
tably take place. 10 BE- true that the
abnormal gold reserves helped a. IT,
nance the wal. but IL appears thnt
immediately upon cessation OF hoStil-
tiles. commanding effort should have
been i-nhuguruttu to Curtall credit
gradually. instead Of that, Imitation
since the armistict has heen CROWNS
upuce instead OF decreasing
II does not appear that thr present
high level Of prices viii soon begin
20 fail, because the shortage of lll
kinds Of goods tends to support high
prices ANA 10 Increase them There
is stili "A shortage OF steel iron MA
chineTy, teNtilcs. and mann Other
things. especially labor. Tho Wall
street Journal says; The steel indus
Try b. stamped with orders a short
age Of 100000 automobiles is claim.
ed. Certain automobile Compduipa
CannOt promise delivery OF ears WITH
in three 90 SIX months Machinery
ana petroleum prices are soaring Hud
prices for certain textiles are brrum-
Ing almost prchihttiys Paper b. ts
scarce 49, 10 WIS during the var Every
consumer is aware OF the scarcely OF
food products especially sugar
Falling Prices win Cut Proht- aud
Reduce Ilnipio, nicu
Much effort ls being made Jppar-
emily ~ get the cost of LIVING down.
Yet perhaps httlr heed is given to the
fact hat hy the time prices have
fallen 10 prr-war levels, it they ever
DO. the world viii ave gone through.
very probably. a considerable amount
Of distress. because. Tor % reason,
on falling prices % is extremely diil-
cult 10 make money and the tendency
mon the wise b. 10 rurulil opera.
ions in even direction. This, 100 IT,
self produces a slowing up OF bush
ness, nurrOws the need Tor employing
labor. and brings ON depression. Mr.
Elliott 4. MtDougal president Of the
Bank Of HunaiO sent "a this month
"a NcW Years message Go tho huslugF
house, % wage Farmers OF EuuaiD.
which To- 20 most interesting ana sUusI.
hlc document ana discusses the sub
lrrt OF falling prices, When prices
reach their maximum, says Mr. Nc,
bougnl and begin 10 fall business
alackcus and profits vanish. No one
q know FOR how long or how Tar Oh,
decline Ion prices viii continue con.
stnutly rising prices. with low prOduc.
ton, cannot continue. Collapse '
sure % come ana caunOt be lar on
sound Advice to Retailers,
Contemplating this collapse. Mr.
Mrnougai gives % every butcher
grocer tailor dress maker mil.
liner or retail 0oHlcr of HuN kind. Tho
Z following advice. "Egil on credit IUs'
as little as possible Don't iot Noui
customers get behind with their bills
! A. the outlook is today you would b,
better on without their trade tha4
with their trade aud constantly iu.
CrcnsiuE book accounts. with aIl Noui
are IL viii De hard ion you 90 kcci
II is not possible for man or wol