Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-03-06
FEW ARTICLES
DROPPING, SAY
BUSINESS MEN
Declines Apply Chiefly to Ex-
portabIes Affected by
Money Prices.
AMERICAN DOLLAR TOP

'FAS-~H~e~~~N ~--~
business men expressed today, may drop
fractionally lower. according to the in
dividua1 distribution and demand for the
commodity. Generally, they say there
has been no lowering in prices of es-
sentfaIs and no decided drop is looked
for until normal production is again
established. ~
The sudden slump in the value OF
foreign exchange was hailed by many
as heralding an era of lever prices.
Business men do not agree on this. They
say that a drop in exchange will tend
to curb speculation and may temporarily
throw certain articles sensitive to ex-
port demand on the market for domestic
consumption, but with an abnormal de-
mand now for nearly every commodity
this surplus would be soon absorbed in
the ordinary channels of home copsump-
ton.
The supremacy of the American dollar
is most clearly shown by comparison
of the present value of the moneys of the
principal countries of the world with
their pre-par values at par.
ALL FOREIGN
EXCHANGE VERY LOW.
An italian Ira is worth normally at
par 1913 cents. Today it is worth OF
II per cent. The French franc is worth
1913 cents at par, the same as the Ira of
Italy. Now it is selling at 7.06 cents or
a loss of 1924 cents. This represented a
decline of So per cent. The German mark
was worth 23.S cents at its par value.
Now marks are quoted at LOS cents, a
loss Of 22.75 cents or decline Of S5 per
cent. The English pound has not had
such a radical decline, but its loss has
been severely felt in American markets,
by reason of the huge volume of trade
the United States enjoys with the Brit
ish Isles. The pound at par IS worth
S4s66. Now 1t is worth 1896. This shows
8 loss Of $121 or 25 per cent.
with this sensatiAlal drop in the value
OF European moneys in the United States,
business men say it is easy to realize
that foreign markets are going TO restrict
their purchases in this country 10 bare
necessities Europe is vitality in need,
however of so many things which only
America can furnish that conservative
opinion looks for no contraction of Amer
lean industry and rational gradual re-
adjustment of the exchange situation on
basis of international profit and good
VIII.
sPECULAToR WORST
HIT By EACHANGE-
''The Spectator who buys large lots
on borrowed capital is the party to feel
worst the sudden drop in exchange, but
this viii have no effecs on the general
staples grocers carry" declared a promi-
nent wholesale grocer who requested that
his name be withheld.
"In all lines of merchandise" he ex
planned, there has been some unnatural
price levels due to speculation on antici-
patton of export demands. Those items
viii seek a lower level, but only to the
extent they will soon disappear in con-
sumption, because Of the slackness Of
production of practically all essentials.
With the resumption of production to
normal level the irrefutable law OF
supply and demand viii automatically
regulate prices"
This country is not on self susta. n
ing basis now" he declared. Talk OF
lower prices is pure folly. Manufactur-
ers are swamped with orders. Labor is
getting the highest wages it has ever
enjoyed. How can a bear story stand
up under these facts?"
He concluded by saying that every
logical indication points toward a bigger
and better business for everybody and
that the sensible thing for everybody,
manufacturer. wholesaler, retailer and
customer is to keep both feet on the
ground, stop INDUCING in day dreams
ard live a conservative life.
Dick Miller, president OF the City
Trust Company, says that an era of
speculation and inhatisn has been re
sponslble for much of the high prices
ara looks for the natural reaction fol-
lowing such a period TO gradually get
ka 70 al low
I'VE have got to stop this undue and
foolish practice of speculation Mr.. Mil
Ter said. THE hostile attitude of the
federal reserve board toward specula-
lion IS primarily taken with the hops
Of discouraging long lines of speculative
credit To this end it has recently
raised its rediscount rate and in its
latest recommendation TO cor gress de
clared that credit. must be put under
effective control and expansion checked"
This is a wise piece of constructive
work, Mr.. Miller thinks. ut will do 4
lot" he declared, toward cu-bing the
activities of spectators who ere In no
way producers and are dead weight 10
our national economic life. The mer-
chant who keeps in the middle of the
road and sits steady has nothing to
fear The fool who loses his head as
every petty condition arises that sways
markets up or down is the fellow who is
steering himself into mess of trouble"
Walter Httz, member Of the firm of
George IIitz & Co, commission mer-
chants thinks congested traffic condi-
tions and higher labor costs are respon-
sible for large part of the present cost
Of things Il welcome the return of
the railroads to their owners" Mr.. Hitz
said. 1.-THE government did all it could.
no doubt but 1t takes railroad men to
run railroads. Everywhere there has
been congestion. Congestion In han
ding perishable foodstuffs means only
one thing-that is loss.
TRANSPORTATION PROVES
FORMIDABLE ITEM.
When you stop to consider that Cali
fornia and southern shipments are the
bulk of the commission mans stock this
matter of efficient transportation re
solves itself into a big item" Mr.. Hitz
explained
Higher labor costs all along the line
for everybody that touches a crate of
produce or fruit is another item that
must be eventually tackled on to the
consumers bill, according to Mr.. Hitz.
He thinks that this matter will eventually
be settled and that radical demands of
labor will be stopped in the ranks of
labor itself before it has gotten head
way.
There is another Item" Mr.. Hitz
added, "that we must take into consid-
Grafton and that is the people them
selves. They have been willing to buy
anything their fancy dictated at any
price. In fact price has been no con-
sideration This creates a demand for
the Injuries while the staples are neg
lected. It isn't right and it isn't a
healthy condition for a commission man