The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-05-21
ECONOMIC GHOSTS.

a ENAT0K WALSH attack upon republican leadership in con
~ gres because q high prices and prefiteesine is : plainly a pol
no good te the country. The answer to Walsh, both from a political
aud mi economic and administrative standpoint is found in the Sat
ierleld cartoons which have appeared recently on this page Sat
terrified tells the whole story IN a few pen strokes. He shows At
lorney General Palmer fighting lilies while permitting the buzzards
10 fcas:. No serious effort has been made by the administration to
check prqfiseering. Nothing has been done but a lot Of bluffing
We have had a packer compromise and a campaign for consumption
Of chuck steak a sugar price agreement and the arrest Of a few
market situation which they did not create. We have had a shoe
inquiry and a strong line Of guif about the people demanding high
priced footwear. We have had everything but the right kind of
The result has been 70 arouse popular uneasiness, to hide condt
and % emphasize conditions tending to increase unrest, We have
had a lot Of surface stirring Of a dangerous puddle Of trouble. We
are going to reap the result
Some radical price cutting is going on in the country Some
@t ,ra o,a are s ss soi = i'S = bs : so1ss sssS fesr s so%o, n pnG IS go"s 10
drop on them. They do not know what 4 IS but they are seeing
shadows that cannot be defined but that arc alarming all the same;
a sort Of economic ghost show. Other merchants have seen in the
price situation a clanee to increase volume and popularity at the
cost Of profits ON particular lines. Also certain commodities have
come down sharply and others will follow.
Some observers see in this situation signs of an impending panic,
Of which radically falling prices might well be taken as a sign But
when these observers are pinned down 70 definite reasons ms TOT T ~
peshng panic business conditions they cannot give ihemI me
reason is that the conditions to produce a panic IN this country DO not
exist. The conditions existing in our nation make for continued
activity, increased manufacture and trade more vigorous business
An this because the demand exists. Our food shortage rs part OF a
Vague fears will not upset H. Nothing has ever upset il. Great
eombinatious Of capitol have undertaken TO overturn the law of
The effort. Very powerful labor organizations have undertaken and
ere even now trying TO oyerturn the Jaw o. supply ana demand LIKE
49,
fail and come 70 grief.
We are all GLAD to see signs ofIower prices. We welcome radical
price reductions in anything, from whatever cause. But we must
remember that reductions. ON essentials can only be temporary. We
should not be too hopeful because Of the surface indications Of market
moi right for reduced prices. There will be no permanent lowering Of
price levels until we go back to work, vigorously and industriousiy
and produce a surplus Of essentials; essential meats, essential grain,
essernial wool and cotton and steel and coal. When we have a sur
plus Of these things prices will come down TO stay down-and not
before.
Another fundamental to permanently lower price levels is a
nedmal change in our taxation system. The great American game
81 passing on the income and the excess profit tax Is played py one
and all. Its fine game for every one sitting m except I'M govern
ment of the United States and the consumers of the SAID nation.
effort to keep up with the expense account the TAX system dnVes
every dollar tina, 'en be driven INTO tax free securities and out OF
industrial investment and the actual tax that Is PAID rs taken our on
the pockets Of the consumers multiplied four 10 SIX ioda as II nrooies
down the line. Money for industrial investment, including railroads.
5 almost as scarce as Irish potatoes IL is almost as costly when II
can be had at all Both must be available in greater volume before the
prices for potatoes or for industrial money can come down: We can
produce more potatoes by going to work ead we can produce more
money Tor industrial development when we qmt CHASING II around a
stump with a stuffed club that is supposed 20 hit the profteer and
that actually beans the consumer.
in the Chicago Board Of Trade or on an Illinois farm, we can wager
the limit that no lowering of price levels Will occur in essentials
until we quit talking and worrying and vague-fearing and 60 to work
and produce a surplus OF essentials. When men ar working bus
mess is good.
become hungry-and then " will go TO work The hunger panic
may come. II Is the only kind OF panic on the horizon Should D
day Dis
Cutting prices m chocolate sundaes, silk underwear and da
monds does not mean much in the present industrial situation exeep
that there is a lul in the luxury market, What counts Is sugar am'
steel, corn and coal bacon and butter Ng,nlng VIII ~ remeoy tm
transportation congestion except equipment. we a. know wwe
railroad equipment is short. III because railroad credit IS snort. w
know how 10 Fix that hut il may take a spell OF hunger to give u
The courage 10 do the Job.
senior De Neari or whoever II was in the Mexican woodpile plot
ting TO kill Senator Albert =. Fall has a LOT OF education coming be
fore he will get anywhere with the job. We recall a highly etncen
lime of home grown eonspiraiore who have hatehed plots directed
against the senator. These could tell Friend DE Negi a lot abou
what be is going mp against
M VAS A FRESH oUYi gso and '''pD9' at the yo''