Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1921-06-04
WAITING FOR PRICES TO DROP

- - NANAAN NlHN ANNNHWANN NfINN NfAff
prevalent dripping In commdliiy
prices Is threatened a. c,us. \ we'll
known financial institution In New York
has had acc'ss tu figures obtained
through recent survey. aud declares
that there " To b. q lrt.up IN the down.
ward tendency.
This is another way Of saying that the
bottom on q number ~ articles has been
reached, and TIM the next change 10 h.
expected viii likely h. upward and not
downward II seem1 relying upon this
statement that the lme for buying
that which IL needed II here. Buyers
have been waiting for drops. and ~.
hap~ with coed Judgment, bu, this NJ.
,itudc has IN the opinion ~ the gfca,
firm In New York. reached the ultimate
measure OF It's dcpcndnhllity.
Merchandise has resumed lts crst
while standards of dcpendahlllty and ap.
peal. and the prices are not ~ remote
from those shown under pre.war condi
tions, The people who have been waiting
To- purchase viii now realize that b~d
rock has been struck and the merchants
have their goods and wares down 10
that point whore they represent true.
and no longer fictitious, values. The au.
ihority quoted says
OF the twenty.slx representatives com.
xIfttH.1 %.
creases In May over tho preceding
month. Will" four stood s,ill. and only
six continued 20 decline.
"Thss. Increases must not he con
s,rucd ~ indicating q new period Of ris'
ing PRICES. Some OF them are seasonal
Z IN character. and others reflect a ten.
dency toward Sterilization on the par,
~ commodities which. In the general de
cline that h@gan In the spring 81 1890.
may have fallen below fair valuation.
Tho increases are Important however,
because they demonstrate that the pro.
ccss ~ liquidation has reached a point
where raw materials are beginning 20
reac, 20 conditions In their own indkld'
ual markets
Normally. the price movement ~
every commodity il determined prima.
r.ly. hy the status % is own market
and tina, ~ commodities Immediately re-.
ia,ed 90 H. Only IN boom periods or dur
Ing violcn, d,nr,sslons are prices affect
"A ,n... "a. a.. .....,.t ,....s.,r.,s a. .,
hy these individual factors. wha, has
happened now il a return toward nor
NAL conditions Henceforth. commod.tie'
may b. expected TO fluctuats IN oh"
dlence 20 the Influences ~ specific sup
ply and demand.
MANY prices have stabilized. rhli
does not mean that ther, will not h
. further declines They may b. cxpcc,e,
In many lines. and commodities whlel
have no; vet been adjusted will receive
no support from oth.rs that have reach
ed a stable footing q fhclr decline the
will not force down. commodities 4
. which defla,lon has s,roady occurred.
. Index numbers DnYe not yet discl,s
/. "a the end Of the rcn,Ial price chang
In the market Cor raw materials due .
, the fact tina, an such numbers In ms
contain quotations for large numhs
& commodities In fairly advanced stage
~ manufacture. and In some casos n
!. consumption. There IL a considerable IA
between declines In raw materials an
= In finished goods. and whsn quotation
> from these two gfoups are combined n
declines IN manufactured gods are ~
!. ficion, 10 obscure the trend OF basic m
/, terial prices.
while the violent general decline
raw materials and related products
q ever this dos no, preclude a slow q
4, Rhine fof r. neriod ~ wears Such q 4
J, Nm. would h. no menace % sound Ia
n mess. n Il perfectly possible In such
o period 70 carry on sound manufacture
. and merchandising operations vii
. profit Gradually falling prices over
/. 81 rid - years would not materially a
q fec, the price movement ~ confnodiii'
q over such periods ~ are usually nece
/, sary for these operations The pfe-e'
/. generation q American business ms
p has been unduly alarmed ~ the dow
!. ward tsndsrelfs - prices. Eising pfio
/. are not necorufy b. prosperity. and
slow. downward movement h di-cours
A lnr only g. reckless speculative aeti'
4 tlcE."