The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-12-18
False Economy a Menace;
Normal Buying and Selling Needed


Public refusal TO buy has been
carried TO the point OF false economy
gnd normal buying must be resumed
so prevent n possible combination OF
high prices with low wages ana un'
employment, Il was declared by
the National Bank OF Commerce IN
New York, In an address delivered
Tuesday. December IA, at the eighth
annual meeting OF tho Convcrters' AS
socintion at the Biitmore hotel. Now
York city, Business needs 10 regain
public confidence by oNacting smaller
profits and oven by accepting losses
IN some cuses, he said.
To my min thcre ~ no greater
service that can be rendered today
TO business n to the public than 10
ro-establish a normal volume Of buy.
ing," Mr.. Williams asserted. And
to do this u seems to me business
and the public must come to an un-
~dcrstanding. II is through the pro
ccsscs Of business. either directly or
Indirectly, that most OF the so-callcd
good things OF life are accumulated
which We all share, or try TO. Unless
business IS being done, unless there
81 a air distribution OF activity, thoro
can be no prosperity to divide. either
between employer or cmploye, bust
ness man or consumer.
II Is no time to preach thriftlcss-
ness now, but Il L. a time 70 place em-
phasis on the need for sanity In buy.
ing. II Is not thrifty TO stop buying
altogether any more han u rs thrifty
10 consume al! Of our current produce
ton without consideration OF the fu-
turc. That IN a wnsteful way of do
ing business. II means o-Xtravagant
production costs and waste OF mnto-
fials In the boom period, ana In the
period OF depression Il means deteriO-
ration OF goods not consumed. In
both periods, therefore, II means
great waste OF human endcavor-and
in the last analysis, the public pays
= bill.
There are n number Of more di-
rect and obvious ways In which this
restraint Of buying Is inflicting in
jury. with goods flooding zach on
their hands, producers and distribu-
tors have had to make abrupt cur
tnilments OF their activities, resulting
in unemployment and IN many direc-
lions In drastic wage cuts, Not n
are manufacturers n distributors
Injured, but misfortune visits tho
working class with It's resultant dis
content n unsettlement, But the
~ effects Of the movement do not
stop even here. A recession In buy
ing carried too far, and producing too
great a s%tagnation In production and
distribution, nay result In a G
dairy era OF shortages and n rebord
In prices without an Increase In real
wages to meet Il. The result would
be that the pressure Of the high cost
OF living on family economy, Instead
OF following the course OF ameliora-
tlon that has set In, would again be
come oncrous.
rs there not a great threat In the
present situation Of UGH unfortunate
results as those Is not the recession
in public buying forcing industry into
too great n curtailment Of produce
tion2 win not. In other words, tho
public pay "A greater price for its false
economy han n Il maintained a more
temperate attitude, both as to buying
In flush times and as to abstenation
from buying In n time such AS the
present? IL II not true that any eco
monte force which develops sufficient
int. .sity to injure n considerable part
OF the public works injury In ulti-
mate effect TO the body polite as n
whole? All must pay a part Of the
cost.
$50 much for the responsibility OF
the public In the present situation.
We are all n part OF the public and
must assume our part OF such respon-
must not be blind TO the fact that the
real initial remedy lies with business
itself. Lies. In other words. with the
chief sufferer In the present misfor'
tune. What will help to restore this
normal scale Of buying which we all
recognize as necessary TO keep the
stream Of trade flowing? Well, for
one thing. dispelling tho feeling Of
disfrust prevalent In the minds Of
purchasers tnat some business men
are still demanding too much for
their wares. This distrust In some
cases. amounts almost 10 resentment
That business ia not keeping good
faith with tstpubllc.
a good deal OF an argument can be
put up for passing on the losses OF a
declining market to the ultimate con-
sumer so long as b. Keeps buying,
since this epreads the loss most thiniy
and widely. But when the ultimate
consumer lsevolta and stops buying,
the wise merchant IN such case Will
meet thc mnrlcef ana lower his price
levels. This Is not only sound bust
ness but good sporting spirit, which
the American public likes to honor.
The public knows that NAM busi-
ness men made excessive profits In
tho era 81 e-xtraYagant public buying
by being able toplnload accumulated
stool bought at low prices. Is IL too
much TO say that II was tho duty OF
such business men TO exercise fore
sight and a~ccuInulate SURPRISES 10
absorb losses Incident to a period OF
dropping prices2r II the full toll OF
high prices was enacted on goods
luckily bought. or cheapiy produced.
s. not not fair play that out OF those
unearned profits should be assumed
some Of the loss from low prices on
goods bought at higher levels2 When
the public becomes convinced that
business H. gking Il the advantage Of
falling prices just as readily as It took
advantage Of rising prices, public
confidence viii be treasured and buy
Ing stimulated.
Again II Is a part of the education
which business owes 10 the public to
demonstrate that goods are being
produced at the least possible cost
compatible with the prices Of mate
nIuL. and luInn Iunlnnna NUM- Ii Ii