The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1939-09-21
Economic =. !. !.
Happenings That Affect the Dinner
Pals, Dividend Checks and Tax Bills
of Every Individual. National and
International Problems Inseparable
From Local Welfare.

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International Problems Inseparable
From Local Welfare.
Big question in most minds today
might be phrased like this: "How is
the European war going to affect me
as an individual, as a worker, and as
a factor in our society,""
The answer to that must naturally
vary with the work you do, the way
you earn your living, in what section
of the country you live, and what your
station in life is. And the hazards of
forecasting at this early stage are OBJ
vious. But, going by the experience of
the past, it is the safest bet imagin-
able that the average man and woman
is going to be affected by the Euro
pean explosion, and in certain definite
ways.
First, war is almost certain to have
an influence on the cost Of living in
this country-and an unfavorable in
fuence, looking at it from the point
of view Of the householder who has to
pay the bills. However, there is no
reason for believing, as thousands Of
people apparently did in the first days
of the struggle, that prices are due
for prolonged trip to the economic
stratosphere. All over the country
people rushed into stores to lay in
heavy supplies of sugar, flour and 9th
er staples. AS result, many locali-
ties reported themselves practically
sold out of these commodities. Stores
were forced to ration dwindling stocks.
This was panic buying, which natural
ly created highly artificial price sit
uation. Prices Immediately scared to
completely unreasonable levels from
which, at this writing, they have be-
gun to drop.
The truth is that we have, and have
long had, a heavy surplus of most
commodities. Sugar stocks on hand
recently touched an all-time high. This
years world wheat crop was the great
est on record, and the U. S. crop, while
it did not set a record for us, was very
large. We have an excess of flour in
storage. Don't forget that the govern
ment has actually been paying out
money in export subsidies in an effort
to find a market for some of these
surplus commodities.
AS a result, even with heavy war
demand, considerable time must pass
before commodity supplies are reduced
to normal" much less below normal.
The moral of it all is that the consum-
er has no immediate real worry about
greatly soaring prices. Prices will tend
upward, undoubtedly, and if the war
goes on long enough a very serious
price problem could result. But sud-
den price booms can only follow mass
Ihysteria. And the government has GER
tain controls, long established, which
can be used effectively to curb profit
eering and conscienceless speculation
at the consumers expense.
Second, what about the effect of the
war on business? There is no need to
go into the armament picture here
'Iif, as the President desires, the arms
embargo is repealed in favor of the
Icash-and-carry plan, the munitions in
dustries, and the basic industries sup
|plying their needs, will obviously boom.
The outlook for other business is high
ly variable. For example, prolonged
war could create an Unsuitable British
French demand for wheat, hides, wool
land similar necessities. The produc-
ers of these commodities would find
unlimited markets and good prices,
) and they and their areas would pros
per.
Foreign consumption of other i'm
Iportant commodities, not SO necessary
to the prosecution of war, would de-
cline. Cotton and tobacco are cases in
point. You can live long time with
out either Of these commodities, but
you can't live without grain. The re-
suit is that the cotton people, who
have long faced drastic problem of
rising surpluses and narrowing for
Ieign markets, may be struck another
severe economic blow. This would be
:, as disastrous to the South as the boom
in wheat would be beneficial to the
plains states.
On top Of that, 1914-1S experience
Indicates that even at home in neu-
trail country people buy less in war
,Itime. They make their clothes last
longer, build fewer houses, as result
: Iof uncertainty as to the future. And
certain industries suffer.
; Thus, the economic effects of the