The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-17

, PrChabi, the real reason that buyers
+ are rot fully convinced about the price
/ question is because 81 the lack OF au-
thoutRtiye information regarding the
present economic situation. The mind
OF the buying public Is being aEitsted
/ also by the wide discussion Of the price
matter. However. before any final con-
clusion is reached II will paw those who
are deliberately postponing their pur-
chases in anticipation Of reductions. to
a~nalyze the fundamentals underlying
the cause for the present price level.
In comparing today's prices, pre-
war prices are naturally brought TO the
mind and IL is here where the compari-
son is not Justified because economic
conditions are entirely different. Be
fore the world conflict there was every
reason for the then satisfactory prices.
but the war has brought about a def
mite change In prices as 1t has in 50
many other vital things.
To-day the dollar has a new form: a
new meaning TO the user. Undoubtedly
the most significant change In the dol
lar is its reduced value in that 1t will
not buy as much as Il did prior 10 the
war. And the reason Is easily and sim
ply explained when the increased bank
clearings and the other evidences
are considered. The mental picture is
complete when we fully realize the tact
that a greater number Of dollars are in
circulation. Today the circulation of
money per capita is far greater than
ever before, with the result that prices
assume a new form When there IS. a
decided plenty OF anything, then It's
worth becomes lessened. SO rules the
law of supply and demand. II is in
herently natural to want what Is scarce
and to pay a higher price for it,. Dia-
monds hold their value because OF their
scarcity. combined. Of course, with their
desirable qualities. And so II Is with
money-with the dollar. The dollar has
and always will have it's desirable
qualities. but unlike the diamond, Its
circulation has increased undated.
This has lcssened its purchasing power
With n dollars to trade with. every
body in the business world. virtually
speaking. has been more or less directly
responsible for the present trend of
prices.
heretofore. It, therefore. follows that
the goods labor manufactures must cost
more to produce and sell, Food and
clothing prices are also higher because
labor costs more, and 80 1t goes, one
contingent upon the other, until the
cycle OF the present price level is COM
plete.
But with the present so-called high
prices, there Is also an unparalleled
era OF prosperity In our midst. At no.
other time in the history of America
have conditions been so favorable and
have We had so many opportunities at
our command. Therefore. why should
we procrastinate in our buying when all
other matters are in our favor?
Prices will not come down for so
long a time that It is almost beyond any
one to say Just when" concludes MIR.
How. Buy now whatever is essential
to your welfare, for the value Of an
article Is dependent always on its ac-
tual worth to you when you need 1t
most, And II your procrastination is
due to the belief that prices will soon
descend. It Is well to consider the COM
blned opinions of the many who have
diligently analysed the situation and
who agree that prices have reached q
new business level where they are
hound to remain for an indefinite pc
Rod"