The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-12-04
Penrose Sees No Chance
of U.S.. Taxation Reform
Will Not Stop the
Drop In Prices, Say
Federal Bank Men
ny DAVID LAWRENCE
Copyright by The Intelligencer)

Washington, Dec 3-Practically every
class OF business or agricultural enter
prise which has been hit by the drop IN
prices has appealed to the government at
Washington for AID in some form or
other. And while proposals for reilet
are being urged upon Congress through
the political influence Of the various
business groups affected. the executive
branch OF the government mas taken
determined position, namely that inter-
yention by the government To stop the
fall in prices means L maintenance OF
the high cost OF living.
The government view is that business
Of all kinds has been warned repeatedly
SINCE the armiStlce that Il crash In high
prices was coming. sooner or later ana
that caution should be exercised: Those
who refused to heed the admonitton anu
have been holding their goods Tor hlRh
prices, ignoring the downward march OF
prices are suffering the cSnsequences.
Opinion in government circles lncilnes
TO the view that III most commodities
the bottom has been reached In the price
curve but that thu 9, nSumcr has not telt
the drop in prices materially because 50
many retailers lave naturally enough
sought TO get I'd Of their goods at
prices somcwn"r" near their original
cost.
Nobody Ia III, government blameS the
retailer for his human desire to get back
but at the same time officials point to
the strike that the consumer himself
Initiated against high prices. For
mcnthS people have been refusing to buy
until prices come down to reasonable
levels. Government officials think the
Christmas shopping will naturally help
out the retailer clearing his shelves FOR
new purchases after the first OF the
year.
In order to do business next year
buying is expected TO be resumed after
New Years with intensity yet with con-
SerYatism. Manufacturers who have or
ders cancelled because retailers were
holding their goods In vain effort to
compel the consumer 10 buy arc expect
ed TO adjust their prices To nj the new
conditions and the prediction here IS
that the cost of living VIII come down
oven more in the first months OF 1921
than ever before.
While there is sympathy for the far
NOR, there IS no disposition 20 to help
him maintain the price, OF wheat any
more than there is TO assist the retailer
in keeping up the prices or his wares.
Suggestions Of farmers strike were
frowned upon by the government when
they were first made and there is feel
ing among responsible officials that
those who started the movement FOR
are partly TO blame for the larger losses
that are being taken now.
The Consumer.
II the advice Of the government could
be spitomized, Il ~ that artificial meas
ures should not be resorted to In any
business In an effort To, keep prices
high because tho ultimate consumer Is
the largest factor in tn" whole thing
and he Will not resume buying until ne
considers that prices have reached fair
level, Members of the cabinet for in
stance relate in private conversation
their own experiences In the stores IN
buying wearing apparel 1t Is true that
the storckeepcrs have bought at high
m hack their COST
hut those who know what the ipcome
tax burenu collected say thu wise re-
taller will get rid Of his goods at
slight loss now or bigger loss later
on but that nc must look to last year
profits for consolation.
As a matter Of fact most businesses
have distributed last years earnings and
there is no provision in the income tax
laws BY which losses OF one year can
be charged against that or previous
year.
Nobody likes to take losses and gov
eminent ofriciSs have steadtastly re-
sisted appeals for intervention that
might pnder other political conditions
have swayed them. There Is no reason
now 10 fear the farmer H-Ste or any
other kind Of vote. The Democrats who
are going out of power see no sound
reason for further weakening the value
Of Liberty bonds or other government
obligations BY straining the govern
ment's credit. And the prediction is
made by the Democrats that when the
Republicans get into power and have
the full responsibility for action they
will examine the facts carefully before
they will help the farmer as against the
ultimate consumer or the retailer as
against the Wholesaler and manufac-
turer or any other class. The feeling Of
this administration is that the economic
situation Is too complex to be assisted
by government paternaliSm and that II
there had been more action taken IN the
last year toward cooperation with
Europe, perhaps the European countries
would have been better able to buy
American goods. In the absence Of
neSce with Germany trade with Central
Europe has 10 suffer. Cotton. for In
stance, was sold in large quantities to
Germany and Austria before the war.
but owing 20 the delay in making peace.
trade relations with countries with
which America is technically at war.
have been in state Of suspense.
Furthermore the allied powers have not
Net tixeI the, exact amount OF the Ger
man indemnity and until they do that.
officials believe il Is folly TO take Ger
man or Austrian securities as a basis
Of credit for American exports. Rightly
or wrongly, the incumbent adminiStra-
tlon holds the view that the present
plight Of the farmer is due to the fall
ure of Europe 10 become stabilized and
that the latter fact Is due to Americas
withdrawal Of her financial. moral and
physical power from the concert Of