The New York herald., 1921-10-02
RENEWAL OF PRICE
CUTTING is URGED
Employment Conference
Hopes Thus to Bring Back
Pre-War Dollar.
NOW WORTH Ga CENTS
Purchasing Power Only so
Cents When Prices Last
Decreased.
PUBLIC QUICK TO BUY
Reduction Of Idle Also Is Seen
as Result Of Lower Re-
tail Costs.
PUBLIC QUICK TO BUY
Special Despatch to THE New YoaK HERALD.
New York Herald Bureau,
Washington, ID. c., Oct. l.

Special Despatch to THE New YoaK HERALD.
New York Herald Bureau.
Washington, ID. c., Oct. I.
resumption Of price cutting
throughout the country In response to
the appeal of the conference on unem-
ployment might bring the value of the
dollar back to its pre-war purchasing
power or near it, in the opinion of
Government officials.
The dollar now is worth considerably
more than GA cents in comparison with
it's pre-war purchasing power, official
representatives OF the Department of
Labor show.
Falling prices increase the value or
purchasing power Of the dollar and
rising prices decrease it. During the
last two months prices have been ris-
ing. The long pull downward on prices
which began a year ago coincidentally
with the national buyers strike
reached the low mark in June and
July. During these months prices
averaged only so per cent. above pre-
war levels. At this time the value of
the dollar was just so cents In COM
parison with 1913.
Wholesale and retail dealers year
ago began to put into effect policy al
most identical with that now recon-
mended by the conference on employ
ment and intended to encourage buying.
Many business men began to act inde-
pendently on that principle In June,
1920, by fixing prices. They slashed
right and left. In July they slashed
again. The cutting went right on all
through autumn, winter and spring.
Sales Picked Up.
In June and July of this year the deal
ers believed they had encouraged the
public to resume buying again. Sales
picked up In every section Of the coun-
try. Reports from big department
stores to the Federal Reserve Board
showed an increase OF business. This
| was in the winter. The growth of sales
continued throughout the spring and
summer.
Whether the price cutting wave ac-
tually did reduce the number of idle,
| officials are unwilling TO say. Reports
| of the Department of Labor showed
| 5000, 900 jobless In January, so far as
| industrial workers were concerned Six
months later the total of idle had grown
to nearly 100000. according to esti.
mates on a similar basis made by the
Labor Department.
Had the price cutting movement not
been initiated the number of unem.
ployed might have been greater thar
| 5000. 900, say members of the Unem.
ployment Conference. In proof that theiI
principle Is working out correctly they
call attention to reports received by ths
conference which Indicate that probably
only slightly more than 100000 now
are unemployed. compared with nearl,
double that number in the middle Of tbs
summer. Secretary Davis does not agre,
that the number OF unemployed has beer
reduced in that proportion. but mills ant
factories are resuning full time opera
tion In many sections.
That the business man has made G
real effort to test out the principle now
advanced I'm It's appeal by the Employ
ment Conference Is shown beyond Ques
ton by reports Of the Labor Depart
ment.
! AS a result of reductions In wholesale
prices during the past fifteen month.
the purchasing power OF the dollar hal
been boosted Just SO per cent. In May
1920, the wholesale dollar was wortl
! only SO cents, or 80 cents less thar
now. These values are based on al
average OF wholesale prices for a lis
of more than twenty standard articles
The data was collected by the Labor
Department.
No data for retail prices Is collected
by the department except that for food
II the retail food dealer IL indicative o
the value OF all retail dollars, th'
average householder now Is making III
purchases with n retail dollar worth g.
cents, as compared with the pre-wal
dollar. In May, 1920, the retail foot
dollar was worth but 46 cents. Durin,
the fifteen months period its purchasing
power has been increased 80 per cent.
or less than half OF the increase In thu
purchasing power of the wholesale dol
lar.
Wholesale dealers thus are shown t,
have applied with more drastic hand tn,
policy now advocated by the Employ
ment Conference.
Taking Wholesale prices as a gage thu
average American now Is able to bu.
necessities and iuxuries at lower price
than the resident of any other country
on the globe. 1t is pointed out In thi
connection that unemployment Is les
widespread in the United States In pro
portion to population than in any othe
country.