The New York herald., 1921-01-18

vi th.l)lOyutilC Is UOC dDL W have IIiC
money or credit with which to buy and the
man who is still employed sees widespread
unemployment and wonders how secure
his employment is; second, because large
portion of the public think we are going
to have still lower prices.
Now, some Of the retail merchants do
not buy, first, because they fear that the
business depression has become so wide
spread that the future purchasing power
of the American people has been seriously
crippled; second, because they fear still
lower prices; and, third, because they are
having difficulty in raising the money
necessary to pay their obligations when
they come due.
There is nothing in the National Thrift
movement which opposes Judlclous or
conservative buying. There is no reason
why the merchant should not strive to
stimulate buying, ard there is no reason
why he should not tell his customer that
it is his belief that prices have reached
the bottom, if he really believes 1t himself.
But. Mr. Merch ant, let's be fair again
We know prices have been abnormally
high. We all hoped they would come
back to normal in gradual and orderly
narrer-tfat they would evolute, not
revolute: hut when we reached the limit
of our barking credit, ard the bankers
had to call o halt, then, in many cases,
factories, jobbers and retailers had to
sell some of their goods for whatever
they would bring-and here and there
sone commodities had to be sold at
less than the prewar cost OF production.
Now. what do you think is the greatest
threat of further generalization OF prices!
I think the greatest threat is to have
further forced sales. Don't forget that
rarv and in fact most of these forced
sales were not due to lack of capital but
due to lack of cash. Don't forget, either,
that there are still many factories, jobbers
and retailers who are still under great
strain. and although they have an abun-
darce of capital yet they are finding 1t
difficult to find the cash to meet their
obligations.
Those of us who are supporting this
National Thrift movement believe that
ronev applied to these strained situa-
tions will do more to help the mercantile
situation than a like amount of money
applied to inGiscriminate buying. Illus
tratirg perhaps by exaggeration, we feel
that if the man who has an appetite to
smoke a one dollar imported cigar would
content himself with ten cent domestic
cigar, and would say to the sound mer-
chant who is under a s,rain: Here Is
ninety cents that | will loan you to help
prevent you from being compelled to
make a forced sale Of your gooCs,' we
think that this would aid the entire
business and mercantile situation more
than ii he had bought and smoked the
one dollar cigar. Now, we know that
ninety cents would not help very much,
and we know that this man, and the
man like him, cannot deal direct with the
merchant: but all of these people can
deposit in some bank, which, in turn,
will use it to help out these particularly
strained business situations and prevent
forced selling.
know a great many of the men who
are working whole heartedly behind this
National Thrift movement Many of
them are merchants themselves. None of
them want to interfere with the business
of our merchants but to be helpful to
them. If we are wrong, you can tell the
people why in the papers tomorrow.
The foregoing letter is but little Of what
can be said in favor of support OF the
National Thrift movement, but if what
has already been said sounds reasonable
then take a chance and get behind the
National Thrift Drive with your whole
heart in it. Give the public the assurance
that the business men of the country are
fully cognizant of the situation, that they
are not fearful about it and will not
themselves "hunt cover and that they
mean to correct the situation as rapidly
as circumstances will permit, and you will
change the mind of the retail buyer over
night.
Conservative buying will again start up
and the buyer will pay what price he must
whether he thinks it is the bottom price
or not. and more will be. accomplished
than by any attempt to break up the so
called buyers strike.
Thursday, If ] am not called upon to
make further reply along this line, | will
tell YOU some Of the reasons why ! am
decided optimist on the business outlook
provided the employers will get behind .
Thrift and Investment Movement and
try to show why wise investing is in truth
wise spending and will help more than the
expenditure which buys something which