Watauga Democrat. [volume] (Boone, Watauga County, N.C.) 1888-current, 1920-10-14
VOL. XxxII.
Retailer And Situation.
Chas. T. Brown in Charlotte Obser-
YER.

ditions also prevailing retail prl'
3ces, and the inability Of manufac-
turers to make their capitalizat-
ion in six months, as claimed by
some, the manufacturer for many
months has been glad to accept
orders at actual cost, merely to
keep his plant running. When
the situation changed, he faced
the situation, and in many cases
kept operating, even at a loss.
The principal reason why the
manufacturer has no business
today is because the retailer has
Crawled in his hole, and rather
than follow the example of the
manufacturer, and cutting his
profit and operating on cost ba-
sis during this period of readjust'
ment, he prefers to stay in his
hole, buy no more goods, and in
sist upon getting the old high
profit on goods in stock. Many
retailers refuse to accept the
fact that conditions demand
cheaper prices, and prefer to
hold to old time profits by sacrif-
cling volume of business.
The uncertainty of practically
all markets; the positions taken
by some merchants relative to
the "dear public" reminds me
of a western story. Away back,
when herds of buffalo grazed a.
long the foothills of the western
mountains, two hardy prospec-
tors fell in with a bull bison that
seemed to have been separated
from his kind and run amuck.
One of the prospectors took to
the branches of a tree and the
other dived into a cave. The buf-
falo beloved at the entrance of
the cavern and then turned tow
ard the tree. Out came the man
from the cave and the buffalo took
after him again. The man made
another dive for the hole. After
this had been repeated several
times, the man in the tree called
to his comrade who was tremb.
ling at the mouth of the cavern;
Stay in the cave, you idiot"
You don't know nothing a.
bout this hole," bawled the other
There's a bear in it,"
Evea in his hule, however, the
retailer is finding a bear and 8
many of them are clearing out
high priced stocks at a loss and
stocking up with cheap merchan
disc, hoping to increase trade
volume and thereby profit, ever
on a much smaller profit basis.
Munds, Rogers & Stackpole
whose cotton trade letter is col
sidered one Of the most conser
vative and soundest, say, in a let
ter just out, among other things
However, we look for no bi,
spontaneous demand until retail
ers wake up to the situation an,
reduce prices. Public buyinl
has been held in check by th'
short.sightedness of merchants
who insist that they should b
immune to the reduction of prof
it's resulting from readjustment
AS a consequence people are no
buying. Manufacturers and job
bers offer goods at concession
in vain, for retailers insist tina
they must sell off goods at higI
prices before they can replenisl
their stocks.
We, therefore, believe that tn
most important indication of
turn in conditions will have +
come from extensive retail pric
reductions. This will be BULLS
instead Of bearish as it will mea
the necessity of replenishin
stocks Of goods, which the publ
is willing to absorb on areasona
bic price level, or on a basis wit
the decline in raw materials.
The question is, will the retail
ers recognize nation. wide cor