Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-11-23
Money and Markets
Need For Economy

Business is better and sentiment
throughout the country reflects cour-
,re. Such progress as has been made
~ +bo business community toward
,orrnal conditions results from re-
1lization that artificial levels Of ac-
iyitv will not again be reached IN
nv period near enough to affect the
problems of today and from a dc.
examination TO practise economies OF
lperation more rigid than heretofore
hought possible. The need OF person
Il effort and economy is also being
Increasingly recognized in giving a
laws wcrk for a days pay and IN
are as to personal expenditure. Busi-
,ass men and executives now recog-
,;2e that kenceforth they must give
h. most thorough persona! atten-
ion and application to their enter
rises. go
Some part OF the recent gain in
business. is enthusiastically result of
.laasonal demand. Permanent'improve-
ment depends to a large extent on for
: ,i-r buvine. power. aid even moro on
he adjustment :of. conditions under
lhich the farmer operates The last
hree years have clearly shown that
no. Eurcrcan situation can be sta
;ilized only by the political and econo-
mic efforts of the countries concern
! a. Domestic conditions can be bet
.ared bs- steady determination on the
bart of. corporations and individuals
ri Sen,rd greater efficiency and TO
,,ractisc greater: {eeonomy. This will
,esuit in gradual read iustn1cht Of the
burden of price inequalities now rest
ng on the farmer. ..4
Position: of the Farmer
|; Thel unsatisfactory situation in
agriculture dominates the business
rltiook. In the cotton states the re-
ativeiy hiehsadiIs. Of cotton has en-
outraged the farmer, but uncertainty
both as to demand for COTTON goods
and as to the size Of the admittedly
mall crop has minimiZed beneficial
Effects of better prices. Farmers in
he grain states will hardly break
oven on 1921 operations at current
prices of corn and wheat. While 1t is
cruc that the prices of goods used by
farmers have fallen, they are still
yoll above the 1911 level. Grains are
III close to or below pre-war prices.
IN the face of these facts, the conten-
ton is not well founded that the farm
y is wilfully refusing to buy, thereby
delaying the return of better times.
The farmer represents about half
-ho consuming power of the United
States The prices of crops are de-
-crmincd in the international market.
md there are no reasonable grounds
or an expectation Of market increas-
.s in those prices at any time III the
immediate future, Reduction in the
prices of what farmers buy would
lave exactly the same effect as nigh
II prices for agricultural product, 1t
futile to contend that becausa of
,igh labor and transportation costs
he prices of other articles and com
noLities cannot decline to the lc;cl
If agricultural prices. If ways are
lot found to lower the prices of all
.lasscs Of goods which they need, and
would like to buy, by means of lower
money wages, higher labor efficiency
.hearer transportation and. lessened
distribution costs. the farmers them
selves will not suffer greatly, but
business of all kinds will be forced
% operate on restricted basis.
Competition Between Manufacturers
In the period immediately ahead,
will face the most Sc
we're competition in generation. 1t
is now clear that many important
industries are seriously overbuilt,
when measured in terms of effective
demand here and abroad. There is no
method by which competition can be
avoided, but there are methods by
which it can be successfully met.