New-York tribune., 1921-01-23
This letter was released to the
publicity columns of the press
Wednesday,, January 19, 1921.

consumer IN order to stimulate his
purchasing activity.
To our way of thinking the only
real test of fair value is the price
of any commodity when it reaches
the point at which it becomes attrac-
tive enough for the public to purchase
it. The ability and willingness of the
public to buy, and the tendency of
business men to enter and compete
in new fields which promise large
profits, is a sufficient gauge, and a,
the same time safety valve, for de-
termining fair prices at any particu-
lar time.
1t is because of this Interpretation
as to what constitutes a fair price of
commodities that we cannot agree
with your appraisal of the impor-
tance which forced safes play in the
present demor alization of prices.
Admittedly, the thrift campaign is
calculated to prevent such forced
sales. How ready are these financial
institutions to prevent such forced
sales into which financially embar-
rassed clients are driven? Who will
answer this question on behalf of the
banks3 Assuming that the banks or
other financial institutions would be
rash enough to loan money to clients
in such a predicament, how is this
client--a manufacturer or dealer or
jobber-in a better position to ac-
celerate movement of his merchandise
To US the danger of demoraliz alton
in prices is merely one of the effects
of the greater cause which lies in
the buyers refusal to buy, and, con-
currently, in the weakening power of
the consumer to buy.
The buying power of the American
people was at its very highest some
months ago, not only because all
American industry was then engaged
and received the highest remunera-
tion for its labor, but because labor.
in spite of its spending orgy, had
managed to accumulate money. The
buying power of the American peo-
pie has remained substantially unim-
paired, except in spots where unem-
ployment and reduction in wages exist,
both Of which were directly the result
of the public's buying strike. Logical
ly, business conditions will become
more aggravated by any increase of
unemployment or further reduced
wages; they will improve as industry
resumes its normal functions, which
depend upon the free circulation OF
the dollar.
These propositions are basic and
cannot be waved aside by the op-
timistic prophesies that all that the
public requires is assurance that the
business men are .cognizant OF the
situation"; that they are not fearful
about it and will not themselves
hunt cover Granted that the busi-
ness men realize the situation, and
granted that they are not fearful
about it, how are you going to dis
pensc over night with the menace
of three million unemployed, with the
list growing, and with its power to
participate in the market weakening?
BY what miracle do you believe the
mind of the retail buyer will be
changed over night in the mere be-
lief that conditions will be corrected
by business men "cognizant of the
situation and not fearful about IT.?
We do not believe the panacea
which you propose will reopen mills
and replace three million men back
on to their jobs. That we realize to
be only capable of accomplishment
within a reasonable time by an in
tensive campaign to educate the pub
>lic to the urgency of keeping up the
normal buying of its needs and by
teaching manufacturers, traders and
retailers the necessity for attracting
the public into the martetplace.
Yours very truly,
NATIONAL PROSPERITY BUREAU, Inc,
BY JAMES RosrHAL, Director.