The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-06-08
SLOW But SURE.

The recent squirt in price cutting
! appears to have halted but there are
evidences that it has had a far-reach-
ing effect. Various raw materials are
reported as finding less ready sale
than formerly and this must result
ultimately in still lower prices to the
consumer.
Il is pointed out by the wollman
Review that:
We should not expect too much at
this time in the way of price readjust-
n1ent. The movement may have its
| irregularities and fluctuations. but the
ultimate tendency is unmistakable 1t
is doubtful If food products will make
much of a decline Our agricultural
outlook is far from satisfa Glory. The
planting season has been late over the
entire country. There Is critical
shortage of labor on the farms. The
| high wages paid in industry have
stripped the fields of their workers.
and the use of power machinery in
agriculture has not yet offset this loss
There has been period of declining
prices in grains and meat products.
! but there is nothing at this moment
| to Indicate a bountiful supply from the
new season.
If. however, we are to have perma-
nent relief from high prices. the re-
duction will have to be effelted as a
result of orthodox methods. Buying
power is still strong, and consumers
are still too willing to pay high prices
for what they want. There will have
/ to be more evidence of economy on the
part of the public if there is to be
further cutting of prices with produc-
! ton at its present level. Output must
| be increased and consumption cur
/ tailed before the downward move
ment can be said to have been def
nitely established.
Our declining export trade will re-
suit in making our domestic supply of
goods more plentiful. Credit strin-
Eency. II continuously applied, will act
as a stimulus to sales of accumulated
stocks and a check on buying. With
production speeded up as a result of
increased labor efficiency, We shall be
able to increase our output at lower
costs and thus benefit the whole
community thru a more reasonable
scale of prices.
Economy and efficiency are the only
two methods thru which we may ex-
pect permanent relief. and we are be-
/ ginning to see signs of their adoption.
The return to normal may be slow, but
we have made a start in that direc-
ton.
Notwithstanding some recession in
business, encouragement is to be de-
rived from the growing resistance to
high prices and the manifest tendency
toward economy thruout the country.
according to the market letter pub
Hshed by the National Bank of Com
merce in New " rk. In so far as this
tendency applies to luxuries, to nom
essentials and to excessive consump-
ton of necessities, it constitutes a
needed corrective to the present situa-
ton. the bank declares.
Some recession in business is in
evidence as a consequence of increas-
ing transportation difficulties and of a
reduction In public buying" the letter
states. THE closing down of plants
has caused unemployment and les
sened buying power in many sections
The volume OF retail trade has been
considerably reduced and cancellations
OF orders have been reported by some
textile mills. In the New England
textile industry this situation is COM
plicated by recent wage demands OF
the workers.
while in the retail markets there
IS slackened public demand and a
downward trend in prices. in the pri-
mary markets there are indications OF
under-production tending to sustain
prices. The relative strength of these
two forces is not yet clear