Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-02
WILLIAM A. LAW
On Price Trends

AN IRRESISTIBLE trend of commodity
n prices downward toward normal is seen
by William A. Law, president OF the FIRST
National Bank. Mr.. Law says that this
was inevitable, but that it is being accom-
plished in more orderly fashion than has
characterized similar declines in the past.
''There is no doubt" said Mr.. Law, that
commodity prices are coming down. Con-
traction in business is inevitable. The evi-
dence of this is plainly visible on every hand
and in almost all commercial lines The
basic staples are to be had at lower prices.
On all sides we are witnessing buyers
market.
1.-The great fundamental staples, such as
wheat, meat products, sugar, leather, WOOL
cotton, rubber. steel and copper, have been
tending toward lower prices. We have had
bumper crops Of wheat and corn. No mat
ter what is done, this can mean only one
thing lower prices in foodstuffs.
Not only are there a great variety OF
foodstuffs that are made from these grains,
but they 20 into the feeding of cattle, hogs
and other meat producing animals. 'Ihcre
are many manufactured products coming
from these animals that affect our tood
prices. The hides go into leather ana other
forms of skins that are important IN our
industrial and domestic lives. A plentiful
supply of these materials Cannot help but
affect prices.
1.-The markets and storehouses arc full q
| wools and cottons. There has been
| dead market for many Of the products that
|. may be made from these raw materials, ana
| the result is that there has already been n
noticeable drop In the prices of clothing both
| for mon and women But the near future
| will see these conditions translated into still
lower prices that will be decidedly below
those already in force.
Coal Situation Complicated
"Sugar. as is Already we'll known, has
| declined greatly. And so more or less we
might run the gamut of other materials that
| directly affect the cost of living.
| '"The coal situation il complicated. Some
operators report that they find their do
| nestle markets in some parts OF the country
supplied by other companies The foreign
| demand for American coal still continues as
strong as ever and the prices offered are SO
| aIlnring that no good business man is likely
to feel that he can afford to turn these
| orders down.
| "Therc does not seem to be much improve
ment in sight in the housing situation. One
| of the biggest factors in this is the rest
| lessness of labor. Until labor conditions are
| bettered and we get more satisfactory re-
suits as to efficiency and continuity of effort
we are not likely to see any material better
] ment in construction.
|
cost of living, if you analyze it, has been
the automobile The motor industry is dis
tipctively American, as this country owns
S5 per cent of the worlds automobiles.
'Thc extent to which automobiles have
been used in recent years may be gathered
from the fact that recent production ap-
proximated 10 900 900 cars per annum. The
population Of the country, as YOU know, is
probably not much more than 100, 900.
'The automobile consumes so many of the
materials used in our everyday life that a
falling motor market affects macy other in
dustries.
Cooper, rubber, cotton and leather, all
necessities in industry as well as for house
hold and personal use, are consumed by the
automobile in great quantities. 1t might be
interesting to note why, with bumper crops,
women have had to pay high prices for the
cotton materials they wore. The higher
grades of cotton are in enormous demand in
making tires, and as a result the amount
available for the ordinary user is greatly
reduced.
Transportation Is Better
"Many of the leaders in the automobile
industry are laying the blame for conditions
they are facing entirely on the lack of bank
ing support to the retail dealer, There il
no doubt that banking credits have affected
many industries one way or another, but
whatever is done in this matter by the banks
is done with a view to benefiting the whole
community as well as keeping the particular
industry In n healthy condition.
"A hopeful sign is to be found in the i'm
provement of the transportation situation
Where few months ago transportation was
down to its lowest level, now conditions ar,
steadily continuing to get better. A bette,