Pueblo chieftain., 1921-08-18
con.umer.' Attitude on Price.


The attitude Of the consumer since
he rebclied agains. Ugh prices. stopped
buying, and brought prices down more
or less all along the line, has not
changed materially. He is still eau
tious buyer and figrres on purchasing
| only What he needs fer the time being.
| He still believes that prices have not
| reached their lowest point, except In
| a. few lines. Theff.ct that there is no
uniformity, that some dealers charge
| less than others, Ccnus to confirm this
belief. You will fire the consumer
complaining that some retailers are
charging as much as ever. The con-
things he can get along without. AT
the least rise in rrices, he adds to
these things. This is all to the good
in the thrift mo?clncnt, but bad for
the merchant. Sales at cut prices, 1t
is said, do not bring much response, as
they did at first.
Public buying in some classes OF
| goods is said to be active, but this, 1t
Will generally be found, Is due to sup
plies having run cut. The merchant
should not take advantage of demand
of this kind by raising prices. The
public can only he educated back to
buying by low margins of profits, and
liz education vii. take long time.
| The consumer cannot be diverted
from mis- quest fof lower prices, and
| those who cater to this sentiment are
reaping the benefit The concerns
which pared profits down to the bone
| at the beginning If tie year are doing
| a satisfactory puSinsss in contrast to
their neghbors, wnC have not adopted
this policy. This appiies to mainufac-
turers as well as ietail dealers. The
| chain stores are an evidence in point.
| Babson reports the average retail sales
in the United States as running per
cent to 10 per cent below last year,
while reports of ,he larger chain
store systems, in most instances show
substantial gain oyer n year ago.
| Scarcity of Cnpital
E. C. McDouga', buffalo banker, in
an address 10 State bankers the other
day, impressed n number of truths
which the bankers are aware of. but
which 1t is we'll l' emphasize. For a
business revival, he said. we must
| have more capit,l. This comes
mainly from three cources-the saw
| ings OF labor. of business, and of in
vestors-and as far as the savings of
labor are concerned. only small part
| is contributed, ooeerse we are a ma
tion of spenders. The reliance must
be upon business and investors ac-
| Ictynulatlcns: and taxes for the past
three years have curfiscated or driven
| out of sight these aCcumulations. with
out which we mus. face bankruptcy.
| He SAYS:
"Hign taxes drive out of business,
men who have accumulated capital,
make ;hem idle ron-producers and
non employers of Iuhor. drive Their
| capital into taX-fiee bonds. and dis
| courage fresh capital. without the
hope o. substantial gam. men will not
risk their capital. The present heavy
taxation gives no su,h hope" -
He tells congress that nothing Will
save the situation but the realization
by that body, that the chief cause pro-
| longing the present depression. is its
| own inaction regarding taxation and
| reduction OF Government expenditures,
| that no other legislation even ap-
proachss In importance such legisla-
| ton or will save this country from a
real calamity this winter. and that
soon It may be too late.
In line with the test banking and
business thought Of the country, Mr..
| McDouSnl is In favor OF Sales Tax.
/ He says that the burden would be
freely and equally distributed under
| that system and ~ouid not favor any
one industry at the expense of others.
Another henuty Of the Sales Tax is
| that .hc farmer. .etNrnr, mechanic or
business man who is frugal and accu-
mulates the capital which builds fac
tories and furnishes employment for
la hor. would be encouraged in his fru-
rality. He would not be obliged TO
| pay that tax upon what he saves. The
extravagant man. the luxury lover,
and spendthrift. woul6 pay. Without
systematic economy and frugality this
nation cannot nave sound. permanent
prosperity"
Mr.. McDougal shinks that every
community should serve notice on Its
representatives at Washington that II
is with the Presidan. heart and soul.
that 1t expects OF ~ representatives
not merely cessation of active and