The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1921-05-18
PRICE DECLINES
FAIRLY GENERAL
FARM IMPLEMENTS AND HARD
WARE ARE EXCEPTIONS
STILL AT 1920 LEVEL
COST OF LIVING PECLINES
Development Association Survey Shows
Material Decline on Important
commoditles.-Retail
Follows Market

Billings. - Many interesting facts
concerning the recession i'll living
costs during the past year are con-
tanned in bulletin issued by the Mon
tana Development association as a re-
suit Of survey Of retail prices and
costs throughout the state. Increased
cost Of doing business, increased
freight rates, and reluctance on the
part of many manufacturers to lower
prices are given as the principle reas-
Ons that prices on many commodities
are still dispOrpOrtiOnately high.
Farming machinery according to the
| bulletin, is higher than last year. Al
/ though a reduction of from 10 to Is
/ per cent was announced by the manu-
| facturers, this reduction was applied
to the 1921 list which had been ad-
vanced materially. Thus, when the
farmer comes to buy a binder, he |
blames the retailer with maintaining |
/ high prices arbitrarily when he finds !
! that the implement costs him more |
than he paid in 1920.
A binder which cost the retailer S165 !
in 1920, was listed on the 1921 SEIZED |
ule at S191. A reduction Of 10 or 10 |
per cent was then announced by the |
manufacturer. This same method was
applied to practically the entire line Of
farm machinery, including gang plOws,
mowers and tractor plOws.
In the hardware and furniture line,
recessiOns, although widely advertised
by the manufacturer, have not been
sufficient to offset the advance in
freight rates, the association declares.
Dry goods prices, however, have re-
coded 40 per cent from April, 1920.
Women's wear is from 1919 per cent
lower. Clothing is selling at half the
price asked last year and, during the
winter, stocks in all parts of the state
were thrown on the market at cost or
below. Merchants were forced to do
this, says the statement, TO keep
8 abreast Of their competitors and to
liquidate stocks in order to pay press
:, ing obligations.
Groceries, on the average, are 80 per
cent cheaper than In April Of 1920.
Canned goods are selling at half the
6 price charged last year. Flour has
been reduced to less than half the
= peak price. Sugar has dropped from
, a peak price of 26 cents to 91a cents.
= Family size soda crackers, bulk sodaS
L and the entire cracker line are still
a selling at the peak price in spite Of the
2 fact that flour and lard are much
l. cheaper. The manufacturers price,
n rather than showing any recession,
re has advanced slightly from April, 1920
s. quotations.
20 In tonnage, the grocers Of the state
report a notable increase, although
III cash receipts are considerably lower
iS than in April, 1920. GrOcers explain
re this by citing the fact that the house
p. wife refrained from buying luxurieS to
Mt any great extent when she was paying
err peak prices for flour, potatoes and
Vt sugar, but now is spending the differ
CO ence for fancy fruits, young vegetables
and other luxuries which she denied
herself last year. This also explains
ey say the grOcers, why the average fam
lily budget of table expenses has no
IL fallen in the same proportion as thu
X decline In groceries
ng Pork products have declined % pc
>, cent, although the price Of hogs at tn,
- stock yards in Chicago has declined ;
!, considerably larger per cent The pub
~ lic has looked for propOrtionate de
cline in retail prices. but whOlesal
E prices have not fallen sufficiently t
permit this.
2 Wholesale prices in all lines hav
~. dropped more than 80 per cent fron
the peak. according to statistics ISSUES
by the United States bureau of labor
m the Federal reserve board surve
~ places this at 3S per cent, while Dun
index figure agrees with that of tn
labor bureau.
Retail prices in Montana have 70
lowed these recessions promptly, tn
Development association finds, an
reductions in retail prices have been
closer proportion to wholesale redut
fiOns than conditions warrant. Con
+ petition has forced upon merchants G
q the state lower prices than Operatin
costs and advanced freight rates seen
lngly would warrant.
aak The Development association warn
the public that a return to 1914 price
Is not to be expected under preser
conditions and cites the fact in SUI
port Of this statement that retail OF
Grating costs are now more than twiC
1sS hs high as they were in 1914. Rem
Die, are much higher, wages and other e.
'cu penses have increased 1O5 per cen
TIC Freight rates have increased 101 p'
yer GENT ever the 1914 level, according
lns the findings of the Federal Trade cor
.nu mission. These increased expense
4Si the association points out, the cOnsul
af or must pay.
- Competition is more keen at Il
0~o present time than it has been duriE
nos any period since 1914; declares the g
;cIr ISOLATION. Any merchant whe arbitra
cid lily held goods on his shelf for pes
ben prices would be promptly underso
ar by more enterprising competitors, al
ia: bis loss would be large. The retail
Of has no alternative but to take his los
ava es promptly when prices declined.
Inc. Montana housewives know what Il
cid retail prices in Minneapolis and CT
nth cago are, says the association.
ons these days of quick transportation al