Evening star., 1930-12-08
BUYER STRIKE LAID
TO FALLING PRICES
Steady Decline in Commodity
Values Keeps Down
Purchases.
BY JOHN F. SINCLAIR.

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, December 81. F.
Sartori, the Iowa-born president of the
Security First National Bank of Los
Angeles, thinks that it is only natural
that buyers should hesitate to com
NIT themselves when commodity
prices are declining.
You are doubtless quite familiar
with the general theory that we may
anticipate a long series of years OF
declining commodity prices due to the
gold situation" says Mr.. Sartori. This,
however, has perhaps little influence
upon the present disinclination to buy
in the face of falling prices, because
Of the belief that the present decline
in prices is temporary one, due to
special causes. When these temporary
causes are removed, prices will be sta
bilized and perhaps recover somewhat.
I have no suggestion as to how to
correct this situation. Our experience
in the past shows us that after a time
prices cease to fall, business picks up
and the recovery begins, but I do not
believe any of us quite understand the
casual relationships of these processes"
Urges Public Works.
On the problem of unemployment,
this well known Western banker says:
ITO relieve unemployment as far as
possible, think that all governmental
agencies should press forward with
public works and that private enter
prises, particularly the railroads and
the utilities, should spend for perma-
nent improvements as much as they
may soundly do So This, however, will
take up only small fraction OF the
unemployed.
49,
employment of all labor on a rotating
part-time schedule would, to that ex-
tent, help unemployment but it would
not help the general business situation,
as the total wages would not be greater
If the same men were employed for the
whole time. I wonder if the tariff and
higher wages resulting in higher prices
for goods may not be having decided
influence on the present situation?"
Upon the mooted question of wages,
Mr.. Sartori says, 'I do not believe
that wages can be held indefinitely at
their present levels, while prices con-
tinue to decline. 1t seems to me that
employers, who retain their stats at
part time on the same wage scale, have
been cutting wages already"
No question about that!
Holland Tunnel.
The Holland Tunnel, that magnificent
piece of engineering underneath the
Hudson River. which connects New
Jersey with New York, is three years
old.
This tunnel cost $4,000, 900 to build
It was a most ambitious project, but
the traffic jams, caused by the rapid
expansion in automobile traffic between
New Jersey and New York, forced its
construction.
More than 81 ,0OO, 900 automobiles and
trucks have passed through the tunnel
since its opening The revenue during
the second year was $5, 1877 900, and this
year it is expected to reach $4,000, 900.
This income is equally divided be-
tween New York and New Jersey In
the Treasury. But in New Jersey, 1t is
put into the hands of sinking fund
committee, and used to retire the bonds
issued by New. Jersey in the building
of its share of the tunnel.
Who uses the tunnel? The figures
show that nearly 80 per cent are pas
senger cars, II per cent commercial cars
and 8 per cent bus lines.
So well regulated is the traffic, that
not a fatal accident has occurred in
the tunnel since it was opened. On May
IL of this year Sc, 400 cars went through.
It will be only matter of a few
more years before the entire construc-
ton will be paid for out of the revenue.
Then doubtless the toll charges win be
eliminated.
Roast Beef Trade.
Argentina's choice roast beef, when
frozen, is called "Frigorificos."
Her roast beef" trade with Great
Britain is growing rapidly. The Prince
Of Wales-England's super-salesman-
is busy these days completing plans for
a good will tour of South America. In
Argentina and Brazil as well he'll be
treated to plenty of their choicest roast
beef
The constant improvement in Ar
gentine chilled beef has made 1t the
favorite in the British market. Think
Of the annual value of cattle produced
in Argentina ranging from $250,000, 900
frozen and chilled beef is largely re-
sponsible. The new quick-freezing
processes-largely developed in the last
five years-have had much to do with
this export expansion.
Before the Frigorificos came along, the
cattle raisers in South America made
their money from hides and jerked beef,
and gave no thought TO the improve
ment Of their breeds. But now it is
different. Great interest in fine blooded
and pedigreed stock has sprung up all
over South America. Fully $4,000 600
steers in the Argentine have Horthorn
blood.
But cattle raising in South America
today no longer offers large returns for
minimum efforts Cattle raising on
choice grazing land in the Argentine
has become a highly competitive in
d1Stry.
copyright. 1890, by North American News
paper Alliance.)