Arizona republican., 1921-12-24
SATURDAY MORNING. DECEMBER "A, 1921
1T c salesman steals for you noaU- he'H steal from you later. II he lies tor yoa noac, he'U ke to you later.
 Frank Gamerl.
Retail and Wholesale Price.

The department Of justice is after the retailers An investigation is in progress conducted bv a large number Of assigned to duty by w T. Burns director of the bureau of investigation at the request of Attorney General Daugherty. The opinion so far formed is that retail prices of food fuel shoes ana clothing are too high some instances the attorney general states "unconscionable" and gen. orally, badly proportioned"
 Is it not possible that this is superficial view? Have any facts been consideration except the wholesale prices and the prices? There is one that has generally been overooked-inflation. Ihough we understood that deflation begun a year and a half ago, it is by no means complete It was impossible to effect it instantly by stroke of the pen by the officers reserve sys- tenn. The most they could do was to issue a decree- to start deation which be accomplished by long trade processes.
 Immediately after the issuance of the decree there began to be drop prices-of many articles and at the same time a slowing down of production. But the shelves and warehouses of the retailers filled with merchandise bought at the highest prices to say nothing of orders that had been placed months before, an alarming number of which were at once cancelled.
 Some of the retailers, to their credit some we know in Phoenix during the bounding prices did base their selling prices replacement prices. Hav- ing foregone the profit they might then have reaped when prices began tumbling they their selling prices before, cost and not the replacement prices. That not always possible. for often petitors were in position to take advantage of the lower wholesale prices If these competitors then based their selling prices the wholesale prices then the other merchants had pocket heavy But if the competitors chose to base their prices those of replacement prices in the high price period they made unusual and what the attorney general calls unconscionable" profits though the prices xieida he oth DuI
 The thing that perhaps precpitated the lower ing of wholesale prices not the decree of defa tion much the effect of it the public The purchasing power of large number of reckless buy CTS was wiped by the armstice. Though the pur- chasing power of other buyers but slightly rared, they sobered, and went to the oth.r treme. They quit buying though amply able to buy. The purchasing power for the most part as great as ever, but it had become latent There still much money in the country in ratio to merchan- this latency which holds business in check and leaves what call a business depression. De- flation is not complete. Businses sta yet at a fixed bottom
 Returning to the subject of prices It is a fact that there has been great drop in the prices of shoes dry goods and clothing within the last year. Though drop in wholesale prices has been better advertised in trade journals it has not been the drop in retail figures. Wholesale prices have fuctuated. and then little while re- tail figures though moving down more slowly have moved more steadily
 In comparisons which have been made of whole sale and retail prices the lowest wholesale prices have usually been taken basis and then it ap- pears that the retailer has made undue profits.
 That there has been profiteering in all not to be doubted but do not think it has been general
 Nor have declines in prices equalled the decline in wages generally The decline in the latter natur- ally began large factories in other sources of production, where 1t found necessary to re- duce the cost production. It naturally came down the line through agencies of distribution until 1t touched nearly all classes of labor and was hastened by the increasing ranks of unemployment.