Pueblo chieftain., 1921-04-10
The Grin
BEHIND THE COUNTER

The obstacle to lower prices and sta
bility most frequently mentioned in
the questionnaires was railroad rates.
Transportation was pronounced SO
high as to discourage shipments of
goods. and it was further claimed that
present railroad fares make the cx-
penses of travelling statesmen extreme
iy heavy. Both of these items help to
account for the price of a piece of
goods by the time it reaches a shop
counter. The merchants who COM
planned about transportation costs
urged that the railroads should lose
no time in cutting wages and rates,
SO that in turn merchandise could be
cut more rapidly.
The QUESTIONABLE answers also be-
walled the hotel rates which help to
make tho travelling salesman so ex-
pensive an item of overhead. Some felt
that the hotels should fall into line
and begin to lower prices in proportion
to the gradual decrease in the cost OF
living.
The Merchants Viewpoint
7 Regarding the extent of their own
| lretrenchments, the merchants cH-
pressed varying sentiments. Many ex-
planned that wages of sales girls could
| not be lowered to a great extent be-
! cause their wages were not raised in
| comparison with those in industry. The
majority of store owners compiled
at least. by granting a bonus, with the
definite understanding that this bonus
was to be given only thru the emerg-
ency period of war prices. Many of
these bonuses are now stopped.
Some merchants reported partial re-
ductions in wages. A number explained
in their questionnaires that they
called their employees together and
| told them that 1t wasn't a question of
profits any longer but of being able
to stay in business at all Others again
| have not made wage reductions be-
cause they felt that their employees
| could not manage on less until living
costs dropped further. Longer hours.
and insistence on greater efficiency
| were being tried by some instead of
wage reductions.
One line where new tactics are being
developed is in credit deals between
| the wholesaler and the retailer. Long
credits on shipments of goods is a
satisfactory policy when prices are on
the rise. Then. no matter how long the
| merchant takes to sell the goods there
is no danger OF his getting less for
them than at the time he bought them.
and so the wholesaler waits on him.
But when prices decline, the stock
bought today from a wholesaler for $12
may be offered at $40 next month. So
the retailer buys less at time, and
keeps his stock moving.
| From now on. Mr.. Dodd prophesics,
merchants must get used to 'doins
business on n declining price basis In
stend Of on the ascending basis of the
lpast few yeHrs. "wc arc cxperienc-
in9." he says. similar conditions to
those that followed the Civil War. For
30 years prices slowly fell and a
| whole generation Of dealers conducted
business on that basis of slowly de-
clining prices.
This recurring situation has prac-
| tfcally stopped buying during the ma st
Few months. People stopped buying in
defiance when prices became ridicul-
ously high. But the buyers strike, so
| called. now is largely a subconscious
| revolt. People are frightened into
economy by unemployment scarcs and
by wage reductions. and then too they
are still using the things they bought
| during the rising price scramble. Now
they arc beginning TO wear out the
extra shoes and suits they bought so
anxiously. and they are expected to be-
gin to buy. cautiously, but at moro
normal rate