PROSPERITY FROM LOW PRICES.

Hawke's Bay Herald-Tribune, Issue 45, 9 March 1937, Page 4

PROSPERITY FROM LOW PRICES.

Endorsing low prices and resultant bigb-volume production as tbe bellwether of economic stability, Frank A. Yanderlip, former president ■of tbe Nationai City Bank of New York, in an article in tbe Christian Science Monitor, indieates bis convictxon tbat one man, witb enligbtened Belf-interest,, and influence in the economic world, might greatly advance tbe nation toward tbe goal of stability and wholesome competition. He pointB to tbe example of Henry Ford, wbose great economic contribution bas been tbe spreading of a low-price and volume-production poliey tbrougbout tbe automobile industry. Mr. Yanderlip alludes to wbat one of tbe leading automobile manufacturers of tbe nation asserted of Mr. Ford's influence. If it bad not been fox Mr. Ford's Model T macbine, this manufacturer was quoted as saying, tbe automobile industry might v still be making only 3000 dollar cars. They would be fine macbines, but there would not bave been made th?. many millions of tbem tbat bave been made. ''Tbe motor industry," says Mr. Yanderlip, ''seeking its profits fchrougb volume production, bas supplied tbe world witb automobile? and ereated an area of bealtby competition. Tbe automobile sells as near to cost as any single product." Mr. Yanderlip declares tbat tbe nation bad a chance for stability if indnstrialists, profiting from tbe example of the motor industry, realised at tbis time that low prices spread purcbasing power and lead to more capacious production. Tbe world, in bis opinion, may feel secure in its prosperity wben men are eeonomically moral enougb to comprehend tbat just wages and fair distribution of purcbasing power tbrougb low prices and bumane bours constitute enduringly profitable policies.