Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-11-23
ERAOF SAFE AND
SANE PROSPERITY
SEEN BY PEDDER

That prices will go still lower this
winter, and then will be followed by
such prosperity and development as
the country has never known" is
the opinion of J. f. c. Pedder. di-
vision superintendent of Bradstreet's,
and one Of the recognized commercial
authorities in the south.
Mr.. Pedder believes it the part OF
wisdom for all lines of business and
industry to meet the new conditions
without lodging or attempting to
postpone the inevitable" The sooner
prices reach a stable level. he be-
lteves, the sooner will come a gen
eral resumption of buying in all
lines Of business.
In general summing up Of con-
+ditions, which he looks upon with
the most hopeful feeling, Mr.. Pedder
on Saturday issued the following:
Undue alarm at economic condi,
tons is absolutely uncal1ed for anG
very, unWise. The memorable law OF
supply and demand regulates prices
which In turn must cause deflatior
of, all unnaturally inflated prices and
the quicker this is realized and act
ed upon the more rapidly will a
stable basis be reached.
THE condition through which we
are now passing is the most crucial
in the country's history, and it is lit
tie short of marvellous how we'll the
critical period is passing and speaks
volumes for the wonderful stability
of our business structure and re-
sources.
1.-THE mad rush to cancel orders
and contracts for materials of vir-
tually all kinds, almost over night,
as soon as it was found that the
buying public had realized the folly
of reckless buying was rude
awakening to our industries, which
might well have been. to some de-
gree minimized had the business
men been far sighted enough to have
realized that price adjustment was
inevitable and had anticipated this
by a gradual recession in prices in
stead of waiting until the condition
was forced upon them.
THE peak of commodity prices
was ASc1SAiOu Ala II Sbl udIy, 4SZU, Slice
which time (ntne months) the price
level has retracted forty-three per
cent or trifle over tWo-fifths of
the distance it rose from August /,
1914 to February /, 1920, and gra-
ically shows how well industry
has done it's part towards attaining
normal conditions, but industry alone
cannot do It all--the process of de-
flation must include every artery of
our economic body-manufactur
jobbers, retailers, producers of raw
material as wei las professional men
must all do their part-there can be
no escape from the memorable law.
the inevitable will not avail-the
medicine. though bitter. must be
taken and the quicker the better.
Retailers should realize that they
must meet the economic adjus tment
and reduce. their prices to meet the
new conditions. Farmers must sell
enough of their crop to pay their
past due bills and in every branch of
business life efficiency must be OBJ
tanned with the minimum Of expense
not necessarily by reduction of
wages but by increasing production
at a lesser cost by revision of our
'boomtime'' practice. ....
This winter will probably see a
still further recession in. prices with
it's consequent resuIt-but with the
increasing demand from foreign
markets for our goods which will
probably very soon be available to
our producers by the arrangement of
the proper credit facilities by the
help of the American Bankers asso-
citation, the enormous food crops
that we have raised, the rehabilita-
ton Of our railroads that are now
on profitable basis. our splendid
banking facilities which have stood
the greatest strain in their history.
and the accumulated savings and
earnings of the war period which
will be let loose when it is realized
that prices are right. must result
in such prosperity and development
on a safe and sane foundation that
this country has never Known"