The Donaldsonville chief., 1921-01-01
How to Lower Prices.
Literary Digest.

The lowering of prices is every
body's business, and the process Will
be most rapid and least disconcertlng
if everybody lends hand, and every
body means, specifically, capital, la
bor and the state. This is the key
note of a straight talk on business
conditions by the Auckland Weekly
News, which says that reports from
the United Kingdom of unemploy-
ment and slackness Of trade make
"curiaus and disturbing reading" "
Every body knows that unemployment
of any kind at the present time is
"artifcial, stupid and destructive" ,"
for the whole world is hungry for
goods We are all waiting favor
able opportunity to replentlsh ex-
hausted stocks either Of business or
of household or personal necessities,
and tbs waiting attitude prevails
throughout the world, according, to
this Influential New Zealand weekly
which asks:
"Why then, this folly of idle fac
tories and unemployed workmen!
Why are not the factories working
overtime to replace the resources de-
pleted during the war-period and to
re-establish civilization on it's accus-
toned margin of sufficiently? The
answer is of an aggravating familiar
ity. The prices Of goods are too
high. They are too high not
only for the countries bled and
devastated by war, but they are
beyond the reach Of the countries
which retain their financial stability.
There is a decline both in capacity
and willingness to buy, and this un-
employment in the midst Of unfln:
ished tasks indicates that the read
justment of prices, however f1uctua-
ting it's course may be, has commenc-
ed"
Readjustment of prices is not the
exclusive responsibility of the manu-
facturer, wholesaler, or retailer, but
"embraces and reacts on every sec
ton in the community, from the gov
ernraent to the poorest workman"
and this weekly proceeds:
'|For Of what does price consist!
Profit, indeed, but also taxation and
cost of production, including labor.
It would be a comfortable, if it were
a tensble theory that high prices are
due to large profits and that the
abatement of the speculative fever
would injure only the 'profiteer. The
contraction of trade has certainly the
initial recommendation that it helps
to restore the element of competl-
ton, and so dimishes the opportunl-
ties for unconscionable gain which
have been present in every country
during the past few years. But II
profits could everywhere and I'M
mediately be brought within reason,
able compass, the results would
gravely disappoint those who charge
all their economic distress to the
rapacity of capital. Many other
factors tending to maintain prices
would be disclosed, and among the
chief of these would be the high
level of taxation"
The third principal price factor IS
the cost and quality OF labor, and 1t
is averred that while wages have
"properly risen in accordance with
the cost of living" industry could
have borne this burden better IF it
had not been assailed by strikes, by
underproduction, by go Slow and
by obstruction
"Such tactics maintain prices
against the whole community and go
long way toward discrediting la
Dor criticism of the cost of living.
Prices will find their own level in the
end, but the readjustment will be
wonderfully stimulated by a CO.
operative effort embracing the whole
community-by moderation and fair
dealing on the part Of capital by the
most rigorous economy on the part
of the state with view to reducing
taxation and by conscientious labor
on the part of wage-earners."