The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1921-01-07

order to minimize the proceeds OBJ
tanned by growers from the sale Of
their crops.
The fact il. Of course, that the
present decline in the market value
of practically all commodities Is
worldwide phenomenon. 1t is not
confined to the United States. The
same reports of decreased demand,
consequent declines in the selling
prices Of goods, general slowing
down of business activities, come
from the Orient, from South America
and from Europe. The universal
fall of prices has proceeded far
enough to demonstrate that it is no
mere temporary fuctuation. but that
it marks material progress in the in
evitable process Of deflation from the
levels attained during and immedi- |
ately after the war.
In certain industries this move
! ment has been more precipitate and
extreme than In others. The prices
of sugar and coffee, for example,
have declined faster and further
than those Of most other food COM
modities. Possibly they have gone
to point lower than is actually JUS
tilted. II is evident, however, that
all prices must be readjusted to lev
els permanently lower than those
lines in which the readjustment is
first completed will be in the best
position TO benefit by an improve
ment in general conditions ard to re-
sumo their activities on normal
basis.
! The process Of price reduction to
lower levels inevitably involves much
hardship, because its burdens are UNI
evenly distributed. In many cases
foods produced from high priced raw
materials and by labor receiving
high wages must he sold below the
cost of production and this loss falls
utors. In other instances the pro-
ducers Of raw materials have been
/, caught by the decline and are un-
, able to dispose Of their products for
an amount that will represent fair
return on the lator and capital in
vested It is obvious however, that
; if business is to continue, the cost
of producing commodities must be
, brought down to point that will
make possible their profitable dis.
, tribution at the reduced price levels
: This involves concessions on the part
of all those ascd in the work OF
q production.
Restriction of output by concerted
agreements to limit production, such
. as is being urged upon many groups
, of producers at the present time, /:
: no real remedy. II this course were
adopted universally it would NEAR
i, high prices for all products, blu
~ steadily ,lessening consuming power
f increasing unemployment and an III
&, innate condition of almost complet,
@ Industrial stagnation. Particularly il
\ the case Of commodities of worlt
wide production and use, such as SUI
!, gar. is true that the limitation o
;, production or withholding Of prod
o ucts from market simply improve
\, the opportunities and the term
/ which producers in other parts Of tn
!. we.'d can command. This truth ha
:. been strikinsly illustrated recent
in the case Of holders of Cuban su
l. gar. Their perfectly natural unwill
'. insness TO sell at the prices whicl
I. the markets of the United State
would pay did not result in improy
: ing prices, but only in giving posses
6. sion of these markets to sells Of GU,
side sugars.
1t we'll for all til ase concerned i
f. the sugar industry to look facts |
the face and to realize that it is n
longer practicable to produce suga
a at cost of eight to ten cents
n pound. The prices Of cane and beet
IT and OF the labor employed In thei
e. production must he brought dow
e. and expectation Of abnormal profit
s. must be abandoned. 1t is true tbs
IN members Ct the industry have bee
es nowise responsible for the high price
III that have prevailed, but neither ca
We they expect the general communi,
to to sympathize with Or even to to
ne crate efforts to advance the price ,
no their commodity at a time when q
of other prices are declining. Fac
to About Sugar.