The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-09-22
beneficial Reduction Must Be
Gradual and Uniform.

Gradual and Uniform,
An item OF news in the papers yes
terday calculated to attract considera-
HE attention was an announcement by
Henry Ford Of reduction In the price
~ his products Of from II to 81 per
cent
There is no doubt that the prices are
No longer on the upward trend. IN
so.ne cases there have been voluntary
rcductions, as in the case Of Mr. FordS
celebrated output.
But the country must not got the
,nnressIon that there is TO be crash'
or that the economic system Is gong
to pieces. on the surface one might
gather that Mr., Ford's announcement
is a contrary conclusion, but an In
yes,igation will prove that it Is not
The revolution Of industry since the
advent Of the motor propelled vehicle
has made the truck an indispensable
factor in business enterprise The
pasaenger-carryinE car is great con-
yenience. hut except as people have
adapted their place Of residence and
business connections to a reliance upon
its pernanency, II Is not CONNER
dial necessity. The reduction OF the
messenger cars announced by Mr.. Ford
q Al .per cent, while the reduction In
the price Of the truck Is only II per
o.nt In other words. the reduction OF
necessities is gradual and slow while
the reduction in the prico OF tho dis
pensable articles is more precipitate'
The reimbursement is going on In all
lines hut there is no indication OF
crash. panic or hard times, A precipi-
tate drop in prices would be as unfor-
t,nate with the prevailing high wages
AZ would preclpitate drop in wages
with the prevailing high prices.
Conservative business men, workmen
ana farmers realize that an adjustment
must be uniformi that all ranks and
classes and all products must expert
ence the Same sensation at the same
time in order that the effect OF the
change may not injure anyone.
The public has not felt the effect
OF the readjustment that is ON its way
There are exceptional cases. OF course
where prices have been shot to pieces
but these cases relate TO speculative
enterprises where gamblers chances
have been taken with the inevitable
fate of the gambler.
In the case Of staples there may be
some change, and probably viii be q
Imposition downward in price, but II
must be remembered that the stocks
Ihe merchant is showing were not pur-
chased yesterday nor last week nor last
month. The seasonable articles were
purchased last spring or earlier at high
prices and there Is no immediate pros
pect of an appreciabie change.
Wool, silk and other raw materials
used In the manufacture Of wearing APP
parel are lower than they were a few
months ago, but the manufacturing
cost Is higher. II a man builds house
he NAV get the benefit Of reduc-
ton in the price of lumber, but the
-,final cost Of the finished product Is
affected only to limited extent, fol
the reason that in a frame house only
about 10 per cent of the cost in In
cluded in the humber. The cost of labor
is stIll high and indications are that n
viii remain high, and after all labor
Is the pivot upon which prices turn
upward or downward.
In many cases the retailer has moi
taken advantage of q rising market. II
most lines retail competition is keer
and the volume of sales Is essential
The predominant idea with the re-
taller Is not TO panhandle the public
because he n fixture and perma
nent enterprise. ffe does not count OF
the sales OF one day. He looks 70 in
crease in the annual volume OF busl
mesa and satisfied customers, The sue
cessful merchant is devoted to the idei
Of An increasing volume OF trade at {
small profit
The gradual and normal downward
course Of prices, felt first In 'uxurie
and finally in all avenues OF trade. in
dicates the responsiveness OF the mor
chant to the trend OF business con
ditions. He IL responsive 20 the chang
10 new levels. He has learned, II h.
ever had the delusion, that Fictitious
prices can not be maintained or stimu
lated by artificial methods
All merchants operate on the sam
General principle. They must OF ne
csssity buy In advance and changes II
economic conditions may produce an ef
feet on the future market, but rarel
has an immediate application TO tn
goods on the shelves.
II js natural that everyone shout
wish to secure as much for his none
as he can get. He looke for the hes
bargain. Each merchant Is eager I
make the best offer. But the publ
knows that as the increased purchasin
power of the dollar rises tho value {
the dollar rises and the earning pcwe
dlminishes,
II one goes down they so down to
gether, Just as they rose at the sam
time and for the same reason. In tn
final analysis labor and business ar
governed by economic conditions an
both are affected alike. Good bushes
means plenty OF work and good pay.
Fortunately there is no indication
the contrary. The product Of the sout
Is an indispensable article. The wori
"a lis market. The demand VIII pre-
vent the accumulation Of surplus 70
many years when European bushes
Rsts hack on its feet The price Of III
s..s. a. ,-,A,,.. 80 ka 0ood and bus