The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1920-05-28
A BANKER s VIEW OF FALL
ING PRICES.

In discussing high prices III re
lation to the producer and consu
mcr. at a meeting Of the Eco
nomie Club of New York, Fran
els H. Sisson, vice president o.
the Guaranty Trust Company Of
New York, said in part:
"A wave Of price-cutting is
sweeping over the country. 1t is
the most interesting economic
phenomenon Of the day-an event
long hcralded and waited for by
the public. And yet, curiously
enough, the public is only tardily
awakening to realization of the
fact that it is not only the bene-
ficiary but also the creator of the
movement Merchants generally
frankly explain that they are re-
ducing the prices of certain com
modities because the public is re-
fusing to buy at high prices. In
brief, the movement is largely
physiological, rather than eco
nonlic, in character
" "And it will be well to bear
that distinction in mind in en-
deavoring to analyzc and forsee
the trend Of commodity prices.
The reductions in prices that are
being made today are not due to
over-production; for there is, i'll
fact, undcr-production in many
essential lines which is likely to
continue for some time. Conse-
qucntIy, il would seem advisable
to avoid hasty conclusion that
the present movement forecasts Il |
universal and drastic drop in
commodity prices. 1t may be.
and very probably is, merely an
oscillation Of the economic pen
dulum as it begins to swing from !
the height it reached during and
as a result of the war, although iii
seems certain that we have def
nitely passed the peak Of high |
prices
"Our problem is not to force a
price recession as rapidly and as
precipitately as possible. but
rather to bring about a gradual
read djustment with view to sta
bilizaton. There is quite as much
danger from too accelerated and
extreme price reduction as there I
is from too high prices and all
their attendant evils. Above all.
we should remember that perl
mancnt price~lcvel can be obtain
ed only as the resultant of many !
forces, some Of which seemingly
are unrelated but all. ncverthe
less, working directly or indi-
rectly toward common objec-
tive. namely, a general economic
rc-aNJ Justmcnt.
"Thc present recession in
prices is concentrating the atten-
tion of both producers and con
sumcrs upon the probable effects
upon themselves Of such a de-
cline The nature Of the effects
which may be felt will depend
upon the distribution of the de-
clines throughout the whole
range of commodities as well as
upon the extent and the rapidity
with which the declines are
brought about.
'.eOur price level has attained
its unprecedented height as a
of worldwide scare
ity Of goods and Of extraordinary
extravaganza ON the part of the1
buying public.
Production under conditions
Of general shortage moves up I'M ]
evenly and overtakes the de-
mand, now in this line. now in
hat. 1t is natural that high
priced goods. luxuries in particu- =
ar. Should soonest show a dcfi-
lite downward turn of prices.
This is what we are apparently !
witnessing at present. Furs and +,
ilk. for example have recently {
lecIined to considerably lower
evels. The slump in raw silk |
,riccs in New York, chiefly inl a
Of the big drop in [
apanese prices. was preceded by t
ONE months of gradual weaken S
ag. Clothing and shoes are l
ther examples of goods for
-hich there is a weakening de {