Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1922-08-10
BABSON SAYS
Higher Prices Due

Wellesley Hills, Mass, August r.
When interviewed regarding the rail
road and coal strikes, Roger w. Bah
son, statistician, did not seem surpris-
ed with recent developments. He be-
lieves that things are working out in a
natural way and all interests are doing
tho best they can with a bad situation.
What seemed to interest Mr. Babson
most is the possible effect on prices in
general following the strike settle
ments. Discussing this possibility he
says:
"The strikes while in progress nat
urally put general damper on bust
ness. They have a diSheartening effect
-on producers, jobbers and retailers.
Wage workers have less to spend and
manufacturers are less interested in
pushing their business. All of this
tends to hold up trade in general. Yet
during this period of strikes, people are
living, eatina,, and dressing just as if
no strikes existed. Houses are deter
iorating, young folks are getting mar
ried, children are being born, clothes
are wearing out and merchandise in
general is being consumed. If deterior-
alton and consumption were suspended
during the depression of labor strikes,
then strikes might be good for the
country at times. Unfortunately, how
ever, the deterioration and consump-
tion go on even though retail purchases
decline
BUYING RUSH AFTER STRIKE
"This means that after strikes are
settled there is a general rush to buy.
Wage workers when returning to work
again feel prosperous. They and their
families rush to the stores and purchase
goods. The group of industries which
have been involved in the strike i'm
mediately receive an avalanche of ord
.ers They in turn feel prosperous and
order new machinery and quantities of
supplies. This sudden increase in bust
ness from both wage workers and en-
ployerS is quickly felt by the jobbers
who in turn pour in orders upon the
manufacturers.
''The immediate effect of this is to
cause temporary scarcity of goods
which in many instances results in the
raising of prices. Therefore, I should
not be surprised to see an increase in
the wholesale prices of many products
this fall. In some sections of the coun-
try there will be a distinct shortage in
some lines of goods. Merchants, there
fore. are justified in stocking up now
for fall and winter trade. Those who
have contracts to fill should see that
these contracts are well covered. When
business is so dull, as it is ar present, It
is hard to believe that a few months
can see a radical change in the situa-
ton. Such is possible, although price
increase. may be more Or less of a tenn
~orary nature I say temporary be
cause after tne next squirt in commod-
itv prices, there will probably be an
other break which will make the gener-
al price lower than it is at present. At
ter this next upward movement, the
trend of commodity prices may
be downward for some years to come.
BUY BARREL OF SUGAR
Some of the basic commodities are
already showing an upward tendency. |
Sugar, for example, which has been
such a drug on the market during the |
past two years, has already begun to
and people are well justi- |
fed in again buying sugar by the bar
rel. Linseed oil is irmer. The demand |
has greatly improved and the outlook is
very much brighter. / predict further |
advances for linseed and should not |
be surprised to see raw linseed oil sell |
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