The Washington times., 1923-07-04
HIGHER PRICES
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AUTUMN
Dealers Doubt II Consumers
Will Accept Necessary
Raises, Says Cousins.
By w. s. COUSINS.
Copyright. 1929, by Cosmopolitan
NAwa AArvfcA.1

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NEW YORK, July 4.-The gen.
era1 assumption that prices Of
necessary commodities, especially
fabricated goods, would be mater
ALLY higher in the autumn, Is one
of the discouraging factors today
in the business outlook.
Manufacturers Of important pro-
ducts have repeatedly emphasized
the fact that the goods which they
have been placing on the market
during the past six months have
been manufactured from low priced
raw materials purchased before the
more recent advances in all
markets. They have given con-
sumers the benefit OF the lower
prices represented in the ,acquisi-
ton of these materials, but expect
to mark up prices on fall deliveries
costs.
1t was in anticipation Of higher
prices that a number Of the steel
mills declined a considerable volume
OF forward orders in the early part
Of this year, according to the pub
lie statements of prominent leaders
Of the industry. Raw wool in
domestic and foreign markets has
gone up from 40 to so per cent.
ana cotton, though considerably be-
low the peak Of this year. COM
mands a higher market than the
last crop.
Wage Increases.
Within the last two or three
months there have been some re-
auctions in the prices of raw mater
ials which have been so largely
offset by wage increases that pro-
ducers' costs have remained sta
tionary.
Under the circumstances, the
country is faced with the question
as to whether the American con-
suner will come into the markets
in the new season If prices for
necessary commodities are mich
higher than they are today. 1t is
all very well for producers and
distributors to mark prices higher,
but the crucial tests will come at
the last step in the marketing pro
cess, that of putting the goods
into the actual channels of con-
sumption. VIII the attempts to
make the public reimburse the
manufacturer for higher OUTLAWS
prove successful, or will such eff
forts result in a more general re-
sort to the use of goods OF In
ferior quality, or to a larger
measure Of self-denial than is now
practiced by the American people?
It must not be forgotten that the
consumer has the advantage OF
an important practical experience
along similar lines, which took
place not long ago. His absolute
R~II a.
sonable heights in 1921 effectively
punctured the initiation bubble at
that time, and quickly changed
a sellers market into a buyers
market.
Moreover, the consumer has been
receiving weekly reports of an
almost uninterrupted decline in
prices since the latter part of 1922
and has accepted this as an evil,
dence Of a definite and permanent
downward revision in market
prices. He will not take kindly
to a sudden shifting of the price
winds.
Farmers Suffer.
A fundamental reason for dis
satisfaction among certain classes
Of our people is the lack of stabili-
zation between prices of the major
basic commodities. TIE farmer
would have no real cause for
grievance il two bushels Of wheat
always purchased a pair Of shoes,
but he suffers from no imaginary
ill when he is compelled to ex-
change six bushels for the shoes,
or to give up 200 bushels for a
wagon which in pre.war days had
an exchange value of only forty
bushels.
Taking the 1913 price level as a
basis, the comparative percentages
Of increase as of 1923 would be
represented by an extremely uneven
line on the price chart, ranging
from a fraction to as much as 800
per cent, such a condition does
not make for stability in business.
Comparatively small stocks are
being carried. either by manufac-
turers or distributors, and losses
through depreciation of inventories
will be slight as compared with
1921. Manufacturers will not. of
course, continue production at a
loss and the problem Of the imme-
date future therefore resolves It.
self into that of finding a way
to cut the costs Of production.