The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-01-28
WHEN PRICES FALL


Much effort is being made appar-
emily to reduce the cost of living, but
it does not appear that the present
high level of prices will soon begin to
fall. because the shortage of all kinds
of goods tends to support high prices
and to increase them. There is still a
shortage of steel. iron. machinery. tex
tiles, and many other things, especial
ly labor.
The Wall Street Journal says: 1.-THE
steel industry is swamped with orders.
A shortage Of 10000 900 automobiles is
claimed. Certain automobile COM
panies cannot promise delivery of cars
within three to six months. Machin-
cry and petroleum prices are soaring.
and prices for certain textiles are be-
coming almost prohibitive. Paper is
as scarce as it was during the war.
Every consumer is aware of the scare
ity OF food products, especially sugar"
Yet perhaps little heed is given to
fallen to pre-war levels, If they ever
do. says the Bache Review. the world
will have gone thru, very probably, a
considerable amount of distress, be-
cause, for one reason. on falling prices
It is extremely difficult to make
money and the tendency among the
wise is to curtail operations in every
direction. This, in itself, produces a
slowing up of business, narrows the
need for employing labor, and brings
on depression.
q
the Bank of Buffalo, sent out a New
Years message to the business houses
and wage earners of Buffalo, which
discusses the subject of falling prices.
When prices reach their maximum,
says Mr.. McDougal, and begin to fall.
business slackens and profits vanish.
No one can know for how long or how
far the decline in prices will continue.
Constantly rising prices, with low
production, cannot continue. Col
lapse is sure to come and cannot be
far off"
Contemplating this collapse, Mr..
McDougal gives to every butcher,
grocer. tailor. dressmaker, milliner or
retail dealer of any kind the follow
ing advice: Sell on credit just as
little as possible. Don't let your Gus
toners get behind with their bills. As
tho outlook is today, you would be
better eff without their trade than
with their trade and constantly in
creasing book accounts. With all your
care it will be hard for you to keep
down your book accounts after the
tide has turned. The time to act is
now, when people are able to pay
Because we do not know just when
trouble is coming we are unable to
say: Begin to cut down your credits
next year. or the year after We
do say, Begin now
'If man cannot keep his bills paid
up row he never can. Many of your
customers today are spending money
for things that are not necessary, and
letting their bills run. By cutting off
unnecessary purchases they can keep
bills paid up to date, but If they keep
up their present extravagant habits
and continue to let their bills run,
both you and they will suffer
Whether you shut off their undue
credit today, in anticipation of trouble
the really lOE Their own
good, or whether you shut if off only
when compelled to do so by necessity.
they will not thank you: but in the
first case you will have the satisfac-
ton of knowing that you have saved
yourself serious losses, and also have
benefited your customers, even if they
do not appreciate it. In the second
case you will regret that you have not
only encouraged them in shiftless
practice, but that you have done it at
loss to yourself.
DO not delude yourselves, let no
one delude you, into the belief that
the present era OF high wages, with
easy jobs; of high prices. with large
and easy profits, can continue. Every
wage Garner should at once commence
to save part OF his earnings for the in
evitable rainy day. Every business
man should leave a good percentage
OF each years profits in his business
for the inevitable lean years not far
away"