The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1920-05-20
Quoting Choate, New York Banker
Cries Out; America Wake Up and
For Gods Sake Hurry Advises of
Danger oftoo Rapid price Deflation
and Urges Banks to Stand by Business

country, or course, must necessarily
involve tendency toward lower
prices, Of course, at the expense of
our general prosperity.
1T is not contenGed that the pros
pectiye over-production in certain lines
is likely to develop in the immediate
future. but it is wise to foresee such
impending conditions and prepare to
meet them.
And we should not forget that.
while we still have large excess of
exports, we are selling in great part
in European markets which will
benceforth become less independent
upon our goods Unless substitute
markets can be found for much of
the output Of our plants now going
abroad, production in many lines
must necessarily be lessened.
There Should Not Be Violent Read
iustment
"As yet there is no immediate pros.
pect of a violent readjustment of pro.
duction and drastic drop in prices
But there is opportunity for gradual
adjustments. The credit structure is
sufficiently elastic to make possible
an orderly reduction in prices if the
means at our disposal are rightly
used. Moreover, we should not over
| look important factors, which will
/ tend to hold up prices. Among these
are world shortage of necessaries
| government expenditures. which still
/ continue on an eXtravagant scale;
| excessive taxation: the very serious
/ lack of railroad equipment which is
interfering and will continue TO in
terfere with the transportation OF
crops. raw materials, and manufac
| tured goods; shortage of labor, es
/ pecially on the farms and unfavor
able crop prospects, short cror
will not tend to reduce the price Of
| food, although it will curtail the buy
ing power Of the farmers and there
by exert an influence on commod
| ity prices generally.
LabOrs' Share in Causing High
Prices
"A few days ago a spokesman fol-
the railway brotherhoods and unions
D
eravated factor in the situation from
/ the labor standpoint is that the same
/ powerful interests which are so mani
| festly exploiting the needs of the
public and the toll of the workers
have embarked upon a deliberate
campaign Of propaganda and misrep
resentation to fasten upon labor the
responsibility for high prices in 9th
er words, to play off the two sets oi
victims, the public and the workers
! against each other"
Il hold no brief for the profiteer
and it would be absurd to deny that
there has been considerable profiteer
ing in raw materials and commodi
! ties. But I contend that strikes
which have been epidemic since the
| armistice and have not only materially
retarded and lessened production, but
have seriously interrupted transports
ton, have done more to increase com
modify prices than all the profiteers
We have just passed through the
throes Of an abortive railroad strike
which has unquestionably added &c
the cost Of living. That strike cost
the railroads three million dollars a
day. which, incidentally, is not sc
much the concern of the railroads, as
It is that of the taXpayers-for the
public must make up this loss to the
roads in taxes. in order to insure
the railroads the return guaranteed
by the recently enacted Transporta
ton Law. Furthermore, the losses
which the roads incurred as a conse
uuence Of this strike. were added t
those sustained during November anC
December as a result Of the bitumin
Gus coal strike. The baneful effect!
the slowing down of industry, th'
curtailing Of the movement of al
farm products an the consequent re
duction Of available supplies Of food
fuel, and raw materias-will be fel
for many months.
Eve have heard much about ren
profiteers, and I dare say there hav'
been many of them. But organize'
, labor either does not realize or close
its eyes to the fact that every tim
men employed in the building trade
60 On a strike or shirk at their task
they penalize society.-which include
themselves, by increasing the cost o
building thus increasing rent, an
as a result make prices for goods an
services higher.
IAN incomplete list Of direct losse
due to strikes in 1919 places tn
cost to labor in wages at nearly ~
dollars, and to industry at more tina
one and quarter billion dollars. Ye
we wonder why prices remain high
The policy Of less work and poore
work with more wages. visits it
u penalties upon capital and labor alikt
!. Danger Of Forcing Too Rapid
o Deflation
a "The chief danger in the preser
a situation is that the desirability fC
a.. low prices as an end in itself ma
/. be So exaggerated as to lead to tn
o. attempt to force prices down throug
r. harmful measures for the control (
=. credit The notion seems TO preva
n that the wartime and postwar ri:
n in prices was on the whole disadvaI
n tageous to the country. Prices move
(. up irregularly with consequent mala
|, justment, some individuals sainir
,o while others were injured by u
y. changes. Even when it is granite
h, that resort in some degrees to mea
10 ures tending to raise prices was ne
N essary during the war. It is thougl
10 by some that the evils incurred
NJ the rising prices may and shou
-. now be machcd by the supposed ben
NJ fits Of falling prices. Those who lot
p. merely at the mechanical aspects
~ the exchange Of goods find 50 mu,
- money and credit on the one han
= measured against so much of goo
- on the other-with prices eXpressii
- the ratio between the two. Accordin
~ ~, the desired lower prices may ,ec
"a a. lily be Obtained, it is thought, by {
bitrarily reducing the volume Of me
o,r ~. credit acDaciallV the lattl