New-York tribune., 1921-02-11


that brighter days were ahead.
Labor has not yet readjusted, itself
TO the new economic conditions. Mr.
oisson told the retailers He referred
particularly to th@ railroad situation,
quoting from the reports submitted to
the Railroad Labor Board in session in
Cnlcago, to show that high wages and
inefhclency had practically destroyed
the earning power of the railroads at
present.
Inc financing of our overseas COM
merce also is an important problem. in
the estimation of Mr.. Sisson. who
urged retailers and other classes of
business men to support the Foreign
Trade Financing Corporation in its ef-
forts to extend credit to European
buyers. Our productive capacity is in
excess OF our ability to consume. he
asserted, thus necessitating an outlet
Tor surplus products in foreign mar
kets.
Foresaw Economic Trend
Mr. Slsson said that business men
who studied the general economic situ-
ation foresaw the consequen ses of high
prlees' extravagant buying and abnor-
MAI wages and incomes last year.
AND to-day" he continued, "they
are carefully observing economic
trends to discount the future Mer.
chants and manufacturers, whether
their businesses be large or small.
wholesale or retail, are aware that this
IS time to buy in smaller quantities
IMAM customary and buy more fire.
quently than usual, thereby avoiding
the evil Of overstocking in the present
transition period. They see clearly
that it is a wise policy not to hold
goods for higher prices than existing
costs OF production warrant, ALTHOUGH
IN some instances such goods NAV
nave been purchased at higher prices
1han present replacement costs.
me economic Importance of the re-
taller has never been more accentlrated
tnan 1t IS I'm this period of vital re-
adjustments and price recessions. Tho
publlc has come to look upon the re-
tallers readJustments as the last in
the cycle that must be completed he
lore economic conditions can be con-
sldefed upon comparatively sound
OASIS preparatory to a general revival
of business.
Solution of Problem
"The solution of the present nrohler
is that of lower production costs, We
are in a period of smaller margins of
pfonts than that which we have ex-
perlenced for the last few wears.
Greater efficiency is urgently de
named. Labor must realize that lower
wage scales are far preferable to nm
employment in cutting production costs
anc that eventually such lower costs
VII! increase the purchasing power Of
Colonel Ayres based his conclusions
concerning the future upon q series
OF charts he had prepared illustrating
prices, wages and stock values in this
country since 1914, some charts on
wages running back q hundred years,
and graph comparing the rise in
prices in this country with those in
leading European nations since 1914.
From what has happened before"
said Colonel Ayres, 1T can be expected
tnat we are now entering upon a long
period Of falling prices. For thirty
years after the Civil War prices de-
clined steadily, then rose again for
twenty-five years up to last year I
think the period of falling prices this
time will not exceed decade.
Contrary to the oft-repeated state
ment that retail prices have not been
following wholesale prices, the charts
show that they have. The order of de-
cline is, first, raw materials, then
wholesale prices, followed by retail
prices, and then labor. In the general
decline, however, there will be upward
trends from time to time.
Factor for Depression
cone of the factors that will tend to
depress prices in this country is the
fact that we hold a large part of the
worlds supply of gold. When Euro-
pean nations try to get back on gold
standard of money they will come to
US for the gold. They can only pay
for It with commodities, and these will
flow into the country at a great rate,
at cheap prices, and thus depress prices
here"
There was no general session of the
convention yesterday morning, the
period being given over to group meet
ings on advertising, store education,
traffic and control
1t was the consensus of opinion that
the price comparison in advertising has
lost much cf it's appeal recently and
that other methods of stimulating the
desire to buy will have to be EN- pha-
sized.
The need for the greater training of
store help was brought out in the edu-
cational section meetings, conducted by
Mrs. Lucinda Prince, head of the
Prince School, Boston, and director of
the associations educational depart
ment.