Great Falls tribune., 1922-03-15
PRE-WAR PRICES
WYE NOTICE occasionally al
w .dvertisenent offering SOM

COIluOO1ty Oh OtA1ty -
prices" Then again we sometimes
hear a consumer or purchaser COM
plain that while his product sells
at pre-war prices some other prod
uct which he buys has not come
down to the pre-war price. It
might be we'll to take note OF the
fact that unless the cost OF produc-
ton falls considerably below pre-
war costs we cannot expect pre-
war prices. In a great many lines
labor, which Is one Of the main
costs of production, has not come
down to pre-war wage levels but
If It did come down to a pre-war
level still we cannot reasonably ex-
pect q pre-war level Of prices. Take
for instance a bushel Of wheat and
assume that it sold before the war
for a dollar, and that this dollar
furnished a reasonable profit to the
grower besides his production cost.
Assume further If you will that la
bor and every other element OF cost
entering into the production of this
bushel Of wheat reaches exactly the
pre-war level. Yet the wheat can
not be sold at the pre-war price OF
81 now because it must bear its
proportion Of taxes caused by the
war and that means considerable
enhancement In the price. In addi-
tion to all the elements Of cost that
existed before the war, heavy war
taxes must be added, and that
means 4 considerable enhancement
In the price. In addition to all the
elements of. cost that existed before
the war the production of wheat
must bear 4 new burden in the bill
ZION dollars q year interest on the
public debt, and many other added
billions Of expense which is a heri-
tage from the great war, and finds
expression directly and indirectly
In added expenses which the pro-
ducers and consumers Of the coun-
try will have to pay for at least half
century to come.
There Is no way that we know
Of to reduce this extra expense to
figures that are exact. Increased
taxes represents part Of it, and
changed habits and a new psychol-
ogy represents some part Of it. To
make a guess at It. we would say
that If wheat at Z dollar q bushel
represented a fair price before the
war and the labor and capital Iiec-
essary to produce bushel OF wheat
at that time were exactly the same,
it would take about a dollar and
twenty cents to equal the dollar
price before the war.
OF course as we said labor and
many kinds of material have not
come down to pre-war prices. In
our opinion they will not do SO
within the life Of the present gen.
Grafton. But if they did come down
to the old pre-war basis. we have
still the cost Of the war to add t.
the price. so It Is useless and un-
reasonable to expect the pre-war
prices as q permanent thing for
many years to come at least. For
q short time In some lines we may
get them. In fact we have had
them. A few months ago corn sold
at far lower price than pre-war
rates. But these rates cannot be
permanent because they were corr
siderably less than the cost Of pro-
duction. Sometimes at a bankrupt
stock sale you can buy standard
goods at less than the cost Of pro-
duction, but It Is only temporary
chance. Production will eventually
cease unless the product sells at a
profit. So don't expect pre-war
prices, or if you find them in sonle
line Of production, do not expect
them to continue, unless production
costs have for some reason grown
considerably less than they were
before the war. You will not find
many lines of production in which
cheaper costs prevail. In nearly
every case they are higher than be-
fore the war, and war taxes must
be added to the higher costs, SO
that sale prices must be higher.
This is community sales week in
Great Falls. In the advertising col
umns of this paper you will find a
good many special prices. Some of
them are pre-war prices or even
less. We expect in some cases
they are less than present produc-
ton prices. They are bargains if
so, and the .uise man who has the
~-.- 81 t..x ~>>A @e <h> u>~I,