Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-07-03
George I. Roberts Discusses
The Future of Prices

The prevailing opinion about
prices Is that an effective stop has
been put to the upward movement,
and there Is a unanimous sentiment
OF relief over the fact The endless
round OF rising wages and prices
could not go on indefinitely. The
sooner the rise was stopped The
sooner might stable conditions be
reached. The present state of sus-
pension and uncertainty in the tex
tiles and shoes Will last until these
trades get their bearings and deter
mine their relation to the general
situation. The curtailment Of pro
duction is unfortunate. for the full
product Of these industries probably
will be wanted. The cancellations,
presumably, signify an effort to ret
the same goods at lower price
rather than that the goods will not
be wanted at all. In other words
the cancellations are incidental to an
expected reimbursement OF prices. up
on a lower level. AS yet the chief
characteristic Of the disturbed mar
kets Is q paralysis Of activity rather
than a general fall Of prices, altho
prices undoubtedly have been
broken.
Possibly the great distribution of
clothing which took place last year,
and which was incidental to the
rehabilitation of the military forces,
has put the country in position to do
with smaller purchases Of clothing
this year At any rate there sre
strong indications that consumers
will buy less of clothing and shoes
at the high prices that have been
prevailing than at lower prices. and
that these trades will not ahve fun
employment unless costs are re-
duced. They may rest awhile and
ponder over this fact.
stabilixing influences.
However, the manufacturers OF
wooden and cotton goods will rot
operate their machinery at loss.
and 1t is not to be expected that a
very radical reduction Of prices can
be had in these industries without
corresponding reductions in other
lines, which win affect a general
lowering Of living and manufactur-
ing costs. AS yet, there is no general
decline in foodstuffs. coal is estatb-
lished on a higher basis than here
tofore. freight charges are about to
be advanced. taxes are moving up
wards as the salaries OF public en-
ployes are brought into line with
current wages, interest rates TIRE
rising. building materials. snachinary
and factory equipment are higher
than a year ago, and as yet wsge
controversies are. generally, over
demands for increases rather than
over demands for reductions.
Even in the midst OF, the disturb
ance in the textile industry an ad-
vance Of 15 per cent in mill wages
went into effect June / which is
equivalent to SO per cent on pre-
war wages.
The general world situation is not
favorable either to q rapid decline OF
prices or to prolonged industrial re-
preston. There Is too much work
needing to be done. Tho argument
from former reactions from high
prices and succeeding periods OF
Industrial depression is not good,
for the reason that such reactions
In the past have followed periods of
construction and enlargement OF in
dustrial capacity which had run
their course. Present high prices
are not the result Of period of con-
struction and investment. The $685.
600. 100000 Of new government in
debtedness which ID Cutting the
banks and investment markets repre-
sents in only very small part new
industrial facilities. On the contrary
this indebtedness represents capitA
which should have gone into cur
railroads. house-building and other
construction and development work.
Moderate Price Reductions Indicated
The rising prices Of the last year
have indicated scarcity of goods and
services OF all kinds. A check upon
higher prices is wholesome and de-
sirable, but does not signify that the
country has run q full normal course
Of industrial expansion. On the con-
trary 1t is apparent the country has
scarcely begun to make good the
deficit in capital improvements
which would have been made but for
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