Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-16
BOSTON MERCHANT
SEES RECOVERY IN
NATIONS BUSINESS
fcontinued PROM First Page.l

higher even while prices continue to
decline. base my conclusions on these
two propositions: First, because mass
production, which Is fast dominating
all our major industries, gets greater
and greater total profits out of declin-
ing prices. This will more and more
apply to raw materials and agricultural
products. And secondly, because prices
will continue to decline still further
unless wages are kept up and buying
power maintained. If wages, which de-
termine buying power, are decreased,
then prices must decline still further
because there are no market values in
most of the commodities excepting what
they can be sold for in the market.
Under the pressure of our present needs,
If we attack and conquer the very large
wastes in production and distribution,
we will find there much more fertile
field to make the present lower prices
again profitable"
Short Selling.
short selling on the New York Stock
Exchange should be curtailed or pro-
hibited, as many are now advocating?"
was my next question.
II believe that there should be a
study made of stack market cycles,
similar to those studies of business
cycles that we have found so useful"
was the Boston merchants reply. Eek
perience in the past year must have
convinced us that no lasting control
of the former can be accomplished
without some mastery Of the latter.
Such study will determine scientifical-
ly, and therefore justly, whether short
selling should be curtailed or pro-
hibited."
The next question was: prices con-
tinue to decline not only in the United
States, but throughout the world. Do
you 'see any permanent recovery until
this situation Is corrected? How do you
think this should be metz"
"Of course, sympathize with people
who are hurt by dropping prices" said
Mr.. Filene. "Basically, there is no
remedy for unemployment so effective
as very low prices. If everything we
wanted or needed could be possibly sold
for 5 and 10 cents there wouldn't be
workers enough in the country to sup
ply the demand. Dropping prices hurt
only those who are not up to date in
their production or business methods.
Chevrolet, Ford, Woolworth and many
others of the successful producers and
distributors are trying all the time to
drop prices, and are making more and
more money as they sell cheaper and
cheaper. This Is as true of farm prod
ucts as of manufactured products. If
our farmers cannot be helped to learn
how to make profits out of dropping
prices, by using scientific mass pro-
duction methods, then they will be
forced out Of the world market within
a few years by the mass production
farming methods Of Russia and posi-
bly, some Of the other nations"
Unemployment Relief.
What should be done to alleviate
still further the unemployment dis
tress?" was my fifth question. do
plan supported by industry and super
vised by the State? Would a fve-day
week. or shorter one, help?"
I'VE should give until 1t hurts to al
leviate the immediate distress Of the
unemployed. who are the victims Of bad
business thinking and who are being
tempted by the still worse business
thinking of Socialism and Communism, {"
was Mr.. Filenes reply. THE most sue
cessful business men of the country are
substantially agreed that bad business
and unemployment are the result of bad
business thinking and as preventable as
yellow fever or smallpox.
THE time is soon coming" he went
on, land the steps toward it should be-
gin at once, when we business men, out
of intelligent selfishness will publicly
assume the responsibility for such a
statement and act accordingly. The re-
suit will be that employers will start by
accepting the fact that If business men
want to make steady profits they must
so organize as to keep their employees
busy the year round. In order to do
this, they will be forced to succeed in
conquering the incredible waste that
still exists in production and more so
in distribution.
by keeping up the buying power Of
the masses the year round-simply
through keeping them at work the year
roundDwe will make greater total
profits than ever before and will, at the
same time, conquer some Of the great
political and social wastes that do and
must exist under our present method. "
The Antitrust Laws.
would a modification of the anti
trust laws be Of especial value now?"
/ asked.
Eyes, I think they would" said Mr..
Filene. Il think a modification of the
antitrust laws would be of special
value. think perhaps modification is
called for in order to make the best mass
production and mass distribution ef-
fective. However, do not think that
this modification is likely to come until
the various industries and trades find
some methods of controlling any buc-
cancers in business, who try to misuse
their liberty"
Most observers believe that the
United States must lead in the worlds
business recovery. II that is so, what
industries, in your opinion, are likely
to take the lead?" was my final Ques-
ton.
ut is very possible" replied this
Boston merchant at length, tnat
many industries may lead IN the
worlds business recovery. Mass pro-
duction does and must dominate all
industries that produce the needs, the
comforts and the rational luxuries OF
the masses of the world. Mass produc-
ton must pay mass production wages
and salaries, which means wages and
salaries adequate to buy the masses
of things that mass production must
produce.
Furniture Industry.
For instance, the furniture industry
can become a leader. The furniture
industry, producing and distributing as
effectively as Chevrolet and Ford, can
profitably reduce its prices to one
third of the present prices, which will
result in practically unlimited demand
for a number of years.
Sooner or later, the airplane in
dustry will lsad. I saw an airplane in
Europe this Summer take OF and land
almost vertically. The automobile in
dustry went into mass production and
made prosperity as fast as good roads
were provided. The airplane made safe
for the average man, as it will be, will
find unlimited good roads already pro-
vided by nature.
"Other industries also will develop
rapidly and help prosperity"
Mr.. Filene once coined the words
"companionate prosperity to denote the
Close Relationship which EXISTS hetWeen