The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-12-04

Politics L. Therefore They Are Not
: Championing Poor Farmers
T. ..t,sBy. DAVID LAWRENCE.
fSpecial Despatch to The Reformer.) |
.es Copyright 1920.
- WASHINGTON, Dec. 4.-PracticaIly
every class of business or agricultural en-
terprise 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 relief are being
urged upon congress through the political
influence of the various business groups
affected the executive branch of the gov
eminent has taken a determined position
namely. that Intervention by the govern
ment to stop the fall in prices means
maintenance of the high cost OF living.
The government view is that business OF
all kinds has been warned repeatedly since
the armistice that a crash in high prices
was coming sooner or later and that eau
tion should be exercised. Those who re-
fused to head the admonition and nave
been holding their goods for high prices
ignoring the downward march of prices
are suffering the consequences. OPINION
in government circles inclineS to the view
that in most commodities the bottom mas
been reached in the price curve, but that
the consumer has not felt the drop IN
prices materially because so many retail
ers have. naturally enough sought to get
rid of their goods at prices somewhere
near their original cost.
Nobody in the government blames the
retailer for his human desire to get back
what he paid for goods on his shelves, but
Mt the same time officials point to the
strike that the consumer himself initiated
against high prices. For months people
have been refusing to buy until prices
come down to reasonable levels Govern
ment officials think the Christmas shop
ping 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 in
tenSity vet with conservatism. Manufac-
turers who have had orders cancelled be-
cause retailers were holding their goods
in q vain effort to compel the consumer to
buy are expected to adjust their prices to
fit the new conditions and the prediction
here is that the cost of living will come
down even more in the first months of
1921 than ever before.
While there is sympathy for the farmer,
there is no disposition to help him main
tain the price of wheat any more than
there is to assist the retailer in keeping
mp the prices of his wares. Suggestions OF
farmers strike. were frOwned upon by
the government when they were first
made and there is feeling among re
sponsible officials that those who started
the movement for boarding or holding out
for better prices are partly to blame for
the large losses that are being taken.
If the voice of the government could be
epitomized it is that artificial measures
should not be resorted to in any business
i'm an effort to keep prices high because
the ultimate consumer is the largest fac
tor in the whole thing and he will not re-
sumo buying until ne considers that prices
have reached a fair level. Members of
the cabinet for instance relate in private
conversation their own experiences in the
stores in buying wearing apparel.
1t is true that the stOrekeepers have
bought at high figures and want to get
back their cost, but those who know what
the income tax bureau collected say the
wise retailer will get rid of his goods at a
slight loss now or a larger loss later on
but that he must look to last years 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 of a pre-
ViOus year. ----~----.
Nobody likes to take losses and govern
ment officials have steadfastly resisted
appeals for relief that might under poIiti
cal conditions have swayed them. There
is no reason now to fear the farmers vote
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 obi
cations by straining the government
credit. And the prediction is made BY
the Democrats that when the Republicans
get into power and have the full respOn
SibiIity for action they will examine the
facts carefully before they adopt the
farmer as against the ultimate consumer
or the retailer as against the wholesaler
and manufacturer or any other class.
The feeling of this administration is
that the economic situation is too com
pick to be assisted by government pater
nalisin and that if there had been more
action taken in the last year toward Co
operation with Europe, perhaps the Euro
pean countries would have been better
able to buy American goods. In the alb
sence of peace with Germany trade will
Central Europe has suffered. Cotton, fol-
instance was sold in large quantities t
Germany and Austria before the war
But owing to the delay in making peace
trade. relations with countries with which
America is technically at war have beer
in a state of suspense. Furthermore, thu
allied powers have not vet fixed the exac
amaltnt of the German indemnity ant
until they do that officials believe it i
folly to take Germany or Austrian secnri
ties-as a basis of credit for American ex
ports, s.
Rightly or wrongly, the incumbent adj
ministration holds the view that the pres
ent plight of the farmer is due to tn
failure of Europe to become stabilized ant
that the latter fact is due~to America
withdrawal of her financial. moral AM