The circle banner. [volume] (Circle, Mont.) 1914-1939, 1920-04-16
PLAN WILL HELP
LOCAL MERCHANTS
TO BRING ABOUT A MERCHAN-
Disc BALANCE AND RE-
LIEVE DEALERS
Houses That Are Overstocked May
Dispose of Surplus Stocks Through
the Montana Development Associa-
ton; VIII Have Its Effect in Low
ering Prices.

To relieve a condition brought
about by constantly increasing
prices, a condition which in itself
served to make prices still higher,
the Montana Development Associa-
ton has inaugurated a plan whereby
surplus stocks of merchandise in all
parts OF the state may be better dis
tr1buted and these goods brought 20
the merchant who is in need of them
and has been unable to secure them
from his jobber or the manufacturer.
An unusual situation in the state
as we'll as throughout the entire
country, has arisen on account of
production shortage and rising
prices For the past two or three
years every merchant has been con-
fronted with the constant temptation
to buy little more than he needed
because he was certain that prices
were bound to advance. Every ira
yelling salesman talked shortage"
and urged the merchant to order
more than he really needed as only
a part of the order would be shipped
owing to the general condition of
under-production.
These conditions also led to the
quite general practice of ordering
goods from two or three factories to
insure delivery. Sometimes all of
these factories were able to make
shipment, much to the chagrin of the
retailer, who then found himself with
an over-supply.
High prices, then, were kept high
and forced still higher by this prac-
ice of duplicating and duplicating
orders. Manufacturers were swamp
I'd with demands for goods whereas
he orders in the hands of these
manufacturers as matter of fact re-
presented much more goods than
vas actually needed. This constant
pur to tagging production served to
aise wages repeatedly.
1t was not only in the result, the
many surplus stocks, in which the |
Development Association was inter
sted; it was apparent that if it
ould be found possible to bring
bout more equal division of these
tOcks-to effect a merchandise ball
nce-it would take some of the load
rom the shoulders of the manufac-
urer by checking the demand and
clip to check rising prices.
Another factor which made the eff
ort very much worth while was the
act that the goods of which many
lerchants had a surplus were pur-
based at much lower price than
urrent quotations. Other retailers,
h0 L.
wv the present market quotations
nd still make profit, thus hitting ;
| a very effective way at the high :
,st of living.
The association, through the col +
mns of it's Weekly Bulletin, an !
)unced to it's four thousand merch- :
1T members that an effort would be /
ade to bring about merchandise l.
lance within the state and asked 4
cir cooperation. 1t was proposed y
at firms in all parts of the state n
nd in to the general offices at Bill f
gs lists of goods on which they &
IRE oyer-stocked, the association in :
IN to bring this information to all 2
her members. +,
The response was immediate and /,
Although the first list Il
1T out was an imposing one, the
,ond was even larger. Any doubt n
1T there would be buyers for these II
DDS was dispelled by the avalanche d
letters of inquiry which came to
, general offices in response to n,
n lists. n
Through this plan, hundreds of a,
ms have secured goods at prices m
oh lower than present quotations, m
| in some cases they have secured
IDS which they are unable to get ey
m their jobbers or manufacturer. n
of dollars worth of mer- n
ndise has changed hands and on ar
h thousand there is certain per
t of price reduction to the con- fl,
ler. 10
The Montana Development asso- Fl,
ion was the only organization wi
oh could undertake such an inn In,