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PRICES IN AMERICA.

STABILISING TENDENCY

"SALARIAT" BENEFITING.

(FROM 01-n OWN" CORRESPONDENT.,

FRANCISCO. March 25. \ Food prices still -continue to slowly decline in North America, butter, eggs, and cereals being chiefly affected es- ; peciallv in the Western States, where eggs have fallen to the lowest figure since 1914, the "hcu-fniit" only fetchinc »» to .30 cents per dozen in San j Francesco, battle, and Spokane, Qf\ course, the importation of millions ot I Chinese eggs from the Orient has been a material factor in the descent of the domestic egg prices, but another .con-, tribnting cause has been the extraor-! dinary decline in price of poultry loods, thereby reducing the cost of egg production. • ... ■Viherican families, more especially those among the industrial classes, are obvious!v becoming imitators of Auld Scotland in that they now largely affect the "parridge'- Habit, In consequence of this rolled oiits and foods ot a kindred character are now in great demand throughout the United States, ibut up to a few weeks ago the price was exceedingly'high foi\that class of footj. Some-of the firms placing this food.on tho'market charged as high as 3o cents (Is <id) per 3i pounds packet, but when the public started a boycotting campaign against the "mush sales fell .off tremendously, and the purveyors of the porridge "provender .uid no recourse but to quote lower j prices. . Prices of these rolled oats are now as low as 6 pound's for 24 cents, or twopence a pound, as compared with od a pound recently. Flour Iws also fallen some 30 per cent, in price, the 49-, pound sack no.w selling at U.tio d°!}»vs (nominally lis), :as compared with lbs, which was demanded for the same kind of commodity a few months ago. Sugar has taken a slight upward trend, out is selling around 4d a pound generally in the United States, and bd m Canada. Good Business on Falling Prices.

. The review of business conditions issued bv the Federal Reserve Bank ot .Boston' revealed a moderate improvement in business affairs in Eastern America, but .the bank regarded the slowing down in-commodity prices lately as holding to precedents established in' former readjustment periods. In this connexion it was stated/ that,."His-' ton- seems to be repeating itself in the "time consumed for a radical readjustment in the commodity price level, inasmuch as prior-to the war Bra4streets index required from 15 to 18 months to descend from the ueak to the bottom." The inference is, therefore, that a cessation of the downward movement in wholesale commodity prices may be ' expected this spring or summer. The- | slight increase in activity'in textile and leather lines during February has been responsible for a bigger demand ior j nionev, and retailers are reported to | bo rapidly reducing their accumulated; stocks. On the whole, there is some encouragement to ho derived from the Boston statement that "these phases of the era through ivliich'wc are passing, while they may not furnish a basis for excessive optimism with regard to the .immediate future, are riot, on the other hand, to be taken as giving encouragement, to counsels-of pessimism. • If prices of commodities are to continue declining, Wall street wants to take time to form some conclusions as J 'to what such a downward movement means for business and finance in general. The possibility of a long decline, relieved here- and there by rallies, and particularly by, recoveries in&bttTnmpdi-.J ties which'havc fallen too far, w being* more clearly visualised in some financial quarters. Regarding the movement of commodities the' National Bank of Commerce remarked in a thoughful article that ''Precipitous declines in; commodity .markets are believed to be passed, except iu the case of iron and steel' and a, few othbi\ commodities where'the full forces of readjustment have not yet been felt., Even with a continued j declining tendency, normal business.at a satisfactory profit is entirely- • possible. The enormous in the United States during the thirty years \ following the'civil, war : was carried on.in "just the. same"isucb. bra of gradually declining prices." Different Conditions Now.; The present, situation} 'however, rhas marked differences ;itorn the., times following the .Civil War, according to students of economic history. The opening up of the agricultural. West in the '7o's and "Bf>!s added enormously to the world's, stock of essential goods. Production, for the time being took a long leap ahead of the- demands of population. It was this sudden increase in .production, rather than any strict reaction from war conditions, vhich led to the.decline in prices at that time. To- ; day no such fresh resources have been uncovered. The most, apparently, that the world can hope for at. present is the je-establishment of j the old source of output. The problem, Americans believe, is- the restoration of destroyed capital, rather than tlho cieatiort *.if fresh capital, and the squeezing of itvater out of vast creations of credit the : world over. There are'repeate3, s indications of the sources and extent of this, demand upon investment markets. The individual Stato's.of- the Union and' municipalities,, saddled with a swollen scale of expenditures, are constant applicants fpr credit. Europe's needs are merely awaiting-some tangible formulation of policy Before taking shape, financiers in New York declare. Industrial corporations, at; the very time when their business is declining, find it necessary to float new issues in order to fund" temporary loans, or to-protect stocks on hand. All this is having the effect nf keeping income returns on fixed invest', ments at a high level, at the same time that it is working, an improvement in the banking position, as banks arc gradually relieved-of the burden ; of credit which they have been carrying. "'■ Some bankers in New York aid Boston unhesitatingly state that, aside from flurries of business activity, based mainly on seasonal needs, there is undoubted evidence.that readjustment has been completed," and a "period of prolonged prosperity ushered in. Nevertheless, it_ is a source of continued gratification' that as' month follows month during tliK period, no general business disaster or widespread distress lias yet. occurred to shock'the economic structure." This was the opinion of Mr Frederick Curtiss, chairman of the Boston Federal •Reserve Bank. .The Salaried Man. There is'Oiie type of citizen, forgotten in the past five years, overlooked in the . days 61 high wages and lavish spending (in neither of which he took part), now coming into his inheritance. That individual is tlho salaried man. During the war ho manfully strove to keep up his end. He saw prices soar far beyond the rate at which his pay advanced. lie saw munition workers' make in two days'more than he made in a week. He was called "a poor fish" for standing by his employers and- not "rusluiig off tri take, a job at some munition factory or shipyard, for sticking by his firm and taking over a part of the work done by those who w'entv'to- war—and those who went 'topother work. Those who did the rushing off did the calling as they loft. - As prices rose ': he cut down jn every expense. He had to argue sonictimes against his own family—but so£ dom against; his wife. But he stuck.. Now, the salaried niari has hig head iind'shoulders above water. The llocd of war work has gone.' alany-of' thosewho went to rake the ,; big money'' are out of work. They rose with .the tide—---ydiiisv.ase going <juj ui&_ jJieiidc ..

But the groat army of salaried workers who stuck, as they wcro overlooked. if nob flouted, bv the opportunities ln period of prosperity, .now have aspersion cast upon them when the period is gone. Thev are patient, they are longsuffering—and they mind their own business. It irks them no' more to be called "slaves of the capitalists'' s now than it did to be called ''poor fish' because thev stuck to their jobs in wartime. Now", father looks into the windows of the'shoo store and .the clothing storo with an interest, no longer academic. He looks with the interest ot a possible, and probable, buy or. The 20-dollar shoes, the, 125-dollar suits, and the 18-dollar silk shirts, never attracted him because he had all he ceroid do to meet the grocery bills. Now, a.t prices come down, the purchasing power of that salary, insignificant in the market, two years ago, increases %eek by week. The "poor hsh" almost thinks that in another month or so ho > ;in buy a new hat for" the first time in Jour years, or a new suit of clothes!

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/CHP19210423.2.27

Bibliographic details
Ngā taipitopito pukapuka

Press, Volume LVII, Issue 17127, 23 April 1921, Page 7

Word count
Tapeke kupu
1,406

PRICES IN AMERICA. Press, Volume LVII, Issue 17127, 23 April 1921, Page 7

PRICES IN AMERICA. Press, Volume LVII, Issue 17127, 23 April 1921, Page 7

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