| Show I s Warned to Re Be Ready for Break in P ice W I bor Shortage Is 1 Growing Better in Mining Districts Rate Rale an all am d Raise of Reserve Bank Discount Dis- Dis reig reI Exchange 1 and d B Bonds Frel Rate flate TotA 0 Out ut C Commodities an count con nt West t Expect Expects G Goo 00 d Y Year ear in Mining 1 Hung 4 f By Percy M. M Cropper has lias x ne ou out in the cast about the thc I that gone spite tc of or the cry lUcs o during the tho past t week when tlc tile skids were put Ph e o the franc and Md sterling nn and l it landed around 3 with rano p. p tlc thc te pound sien 0 while the tho mark dropped to a whisper it is on only 1 going th tho sa same e ao down way J to the point where prices in the Un United tell Stat States 3 r ting ing condition point c they belong This period is close and aud andt to ii E. E ii l M t a 1 onT 1 down their expense c accounts will survive call sc whO or of tho lad of oC laboi 0 complaint and the tho mines of tt that tho thOY arc aro noW te It report th that t thO eC- eC tie ID more lOre men to normal In close Is S no that it is expected amOUnt or of be iI m 0 and the west cst will cn- cn rk thIs year more prosperity ty than eons der ble timo since thc the bc beginning nn S at tM hun ham thing thing- that Is lUll one hero hero i Is It Is beinG felt t In in that Is the c excesS cc s profits jes nd mines of oC the nY unfair this long IonS as hick as 19 hold bOid In tho commodity ur Ire tho prIces as it Is hOlding up or of William B. B Colver rY or of the tho commission In his hs adlo ad- ad eral l Tt Trade de lo to the National Wholesale le Dry DO elation bears out His IUs ES the effect that tho the cx- cx to were C rd proms tar tX Is ls passed on and mul- mul will about 4 t or 5 Is taken lied Into the tte that gets dollar every eer bib bUe ur B raising of oC the discount be recent bank has federal reserve In to it b hy by the considerable of or thc the se- se e fed ed loose j r ties were wore being used to tonee toce countries if Ie tho the forn for for- ce a-ce nee ce European n exchange rato rata and bond prices B be taken as any sign sig-n. The dis- dis tt st rate and the exchange rate rato havethe havethe have the same ume time lime turned loose some of ot commodities that havo have been held r peculation This will continue to top p American n goods at home as thc the rt of ot the month of oC December shows s Ing log off of to the extent of ThIs could continue to to break prices tome tIt ne ae tew views Jews of or the financial and amI andi ltee i situation aro now being takU tak- tak U the following will show C Bache this week says IS lIlO of or speculation It In the the k market although It may not last called a c the attention of or the coun- coun t 1 1 I I 10 me toe action oy uy me lIC c U m bank to curtail cre credit lt epan- epan I the reasons for or this action Iy Ir the approach toward the tho ger line of ut credit supply In this 1 I 1 c public has hns become oldy to on 0 the whole hole subject Ing in- in Uig g That of ot deflation and it con con- con con- nt effects o of the gratt Importance that especially the business pub pub- S understand tal tIC the causeS caused of ion fon be able ebie to recognize Ie I Its pros pros- and 3rd to steer their various enteric enter enter- ic ej l to 6 toM toh disaster when deflation ally Uy Vestas On a rl rising ln price l tUr tI business becomes comes moro and Ii- Ii c but Jul when then prices reach thc the j point and nd begin to decline the thc theIs rJ f Is I true true business falls ails fals off and t no longer lonser profitable r 1 Prof Joseph French Johnson recent address the thc great In- In J fol gold old Into this country ln d during ar ar and nd the Die use uso of oC it to 10 produce plied credit ha has stimulated the the- the i iud Ind nd In Increased tl Ul Hie number of oC buy buy- ho cho were able le o obtain credit r nC i accord accordingly Wo We 0 M.-It M. in this country has clid cht td it Its pc peak t. t but It I is s none to begin 10 to fur for r ho tho i expedition which must In- In md nd Ilc f place tu iu the tho cf ind ld n re- re 5 pi I a o o finance ti tl- tl tl wu Wl but hut we lt mm t t. t l I ty upon ces- ces I ces-I s of oC hostilities commanding effort cHort should have o ha been Inaugurated to curI cur- cur tall tai credit generally Instead o of or that I inflation since the armistice has hns been leen leenI growing Instead of or decreasing I Price Kept Kelt Ui UllI Ull I. I It I does docs not riot IVI appear r tl that at tho the present high level rl le of prices price will wi noon foon begin to fall fal b because tho the shortage of or nil all Sl kinds of oC goods tends to support high prices I and ud to Increase O them There is still stilla nUl nUla a shortage of oC steel iron machinery textiles and man many other things especially espe daily labor Tho rh Wall al Journal swamped says ss The Tho steel Industry Is with orders order A shortage of oC automobiles Is 13 claimed Certain automobile automobile auto auto- mobile mobie companies cannot promise de delivery do- do livery o of cars cam within three to sl six s1 months Machinery and aud petroleum prices are aro Ore soaring prices for or certain cur cur- tam tain textiles are aro b becoming almost pro pro- Paper is s a-s s carco Q 03 as it was during the war ory Evory consumer is o of the scarcity o of foo food products especially sugar Bugar I Much effort eort Is being mado apparently apparent apparent- ly h to get ct the the- cost of or living l down Yot Yet perhaps little heed Is given to tho the fact that b by tho time prices prIce havo hao fallen aUen to I war pre lre ar levels lc if thc they ever cr c do the the world will wi havo gone O through very probably a considerable amount of or distress because for one ono on falling prices it Is extremely difficult I to make mone money and the tho tendency amon among tho the wise is to curtail curtal operations in ever every direction This in Itself produces produces produces pro pro- duces a slowing up of ot business narrows narrows narrows nar nar- rows the thc need for tor employing il tabor labor and n brin brings s on depression slon Mr Ir Elliott C. C McDougal president of the thc lank Bank of oC Buffalo sent ut ut thi thin thia month a vo v ow Years Year's message lo o the business lo acs and nd wage earners of ot Buffalo which Is Isa Isa Isa a most interesting and sensible document docu doeu- ment and discusses the subject of or falling fall al- al ing Ins prices When V prices reach their maximum Fays FayS' Mr tr McDougAl l. l and nd be- be lc- lc I gin to fall b business ss slackens and profits profits prof prof- prot its vanish No 0 one can know fur for ho how ho howlong long long or how far Car the decline In prices will 1 continue Constantly Constant rising prices price wih with low production cannot continue Collapse is sure sure to come and cannot be far oft off Contemplating this collapse Mr McDougal gives to every butcher grocer grocer gro gro- t tailor I or dressmaker milliner or re retail retail retal re- re tail tal dealer of oC nn any kind the tho Colo following a advice Sell SelI Sel on credit just as little as possible Dont Don't Ie let your customers get behind with their bills As s the tho outlook Is today you ou would he be better heter off without without without with with- out their heir trade than with their trade and constantly Increasing book accO accounts ac ac- ac- ac cO counts With all your our care It will bo be bohard bohard hard for you ou to keep down your our book accounts after the tide has turned Th time to act Is la o now when people are arc able blo to 10 p pay Because wo we do o not know just when trouble Is corning coming we weare arc are unable to S say to you Ie Begin ln to cut down your credits next year ear or orthe orthe the he year car after Wo We do sa say Be Begin ln now K H f a man mU cannot keep cop his bills paid up flO now he never nover tan uan n. n Many lan of oC your our customers today toY are spending money for things that are arc not sarv san and letting their heir bl bills run By cutting off oc unnecessary purchases the they car can keep bills bis paid up to date ate but It If the they I keep up UI their present extravagant habits and continue to let their bills run lun both 0 lt you ou and the they will wil suffer surer V Whether you ou shut ot off of th their lr credit lt toda today in anticipation of oC trouble in III the thc future and really realy for their own good Joor or whether you yu shut It off ort only when compelled to do 20 co b by necessity the they will wi not thank you ou 01 but In In tho the first case caso y you ou j will wi havo ha e the satisfaction tion of oC knowing that you OU have havo saved yourself serious losses looses and also ahw have havo o ha benefited your ou customers 0 oven If It thc they do 10 not hot appreciate it i. i In Iu the second case caso you ou will wl regret that thal you ou have ha e not noton on only encouraged them in shiftless practice practice tice but that you ou have done dono it at lo loss s sto to yourself Un Day Co 1 miner In J. J Do not delude yourselves let no noOle noo o Ole e deludes delude you ou into tho the belief bole that I the present era cra of oC high wages with wih t I Ca easy y Jobs Johs of oC high prices with largo large I aud e easy profits can continue Every cry I wage vage earner should at once commence to 10 save ne part of oC hiu earnings for tor tho I inevitable inc rall rainy dO day Ever Every business ma mar mal should leave leavo a good percentage of or en each eh years year's cars profits In his business for tor tho the inevitable Inc lean years not tar far 1 awa away The rho letter leter issued b by Goodbody Co of ot No New York has tho the following It I Is evident that tho campaign against unessential credits credis b by the re- re servo e board has liaa on only Iv started an and that in tn addition additon to the r raise In the discount rato rate announced Thursday we e may expect ex cx- ex- ex Poet peet a n sharp shar reduction of ot loans now being used to carry commodities for tor speculation Such will measures wil cause a wrench hero here and there but thc they will tl help hell us S along toward normal conditions material materially Our cre credit lt expansion came came- upon us us an unexpected gusher and I we wc have not known how ho to handle It It It I seems now as ns If IC wo we were getting th the Pipe lines laid lair and will wl eventually e de deliver dolIver do- do liver lher tho the flow Cow where It will wi ilI do o th the most moat goon good 1001 Tho London board of oC trade ha has hn ma made l public an estimate of or tho the foreign trade of or th the United Kingdom In 1910 Imports are aro stated roughly at and exports at lea leaving an ap apparent ap ap- parent adverse balance balanco of or The rho board estimates invisible credits credit credi Including shipping freight an and banking profits and profits on foreign investments Investments Invest invest- ments at about leaving an actu actual l adverse ad balance for tor the thc year of about Certainly these figures would Indi cate that hat Great Britain is J recovering They would ho bo moro more convincing con If It tho the exchange rate on London show showed d some sorno II 11 I I Continued on Following Page I NATION IS WARNED TU TO BE READY FUR fOR PRICE BREAK Continued d From Preceding Page Pago P c sign of or Improvement Rates on Franco France and Italy Itah have not improved and thoIs tho the mark Is almost invisible These rates arc an automatic brake on purchases In the tho United States Eventually l th they are sure to cut off oct a largo large part lart of or our present prescot pres pres- cot ent export trade trado Fortunately l wo we I have hae deferred construction construction construe construe- p. p large larAe amount of or tion and unsatisfied demand at nl homo home which w will s ill keep us temporarily occupied pled pied while Europe Is straightening out I Its own affairs S Needs Xeal I The Railway Ago Age estimates the tho re reI requirements ro- ro roI reI I of ot tho the railroads of or the country countr at during the next order to spend this I three years ears but In amount the roads ro must first bo be able to toI I get ct It This means tho the enactment of oC legislation which will strengthen the I credit of ot tho the carriers to such an extent that the they will be bo able ablo to go 0 once more public for tor torI directly to tho the Investing I I II I their fund I According to Henry Henr Clews of or orew New ew NewYork NewYork I II evidently evident evident- York tho European nations are arc I 1 ly waiting for tor a definite indication of ot the foreign policy o of the tho United States being Influenced In this attitude doubtless doubt less by LJ repeated hopeful forecasts of or I Ionly lI c early action on the peace leace ace treaty with only moderate reservations not likely to vitiate that document document- Meanwhile their urgent necessities have hac compelled a a. continuance of ot our heavy hea export movement of ot goods with tho the resultant depressing depressing- effects upon Ullon foreign ex exchange ex- ex change chango quotations The situation t at Washington has apparently Included a deadlock not only on the peace treat treaty but also on ott railroad legislation This is what the market has feared for tor some somo timo past anti and docs does not point to an any ne new phase of or the situation but merely to a failure to Improve tho the situation already existing Despite this standstill standstill stand stand- still stilt in tho the process of ot adjusting broad public questions business has continued continued continued contin contin- In a hopeful mood with strong de demand ue- ue mand for or goods and ample employment for Cor labor abol the country over ocr The fhe Pan Ian I financial conference at Washington Washington Wash Wash- ington ton has sl shown own t that ht h t the tho na nations 1 of oC 1 the tho southern continent arc are still lookIng looking look look- Ing InS to lO the United States as tho source I of or their thc means menns for or financing Industry I and trade and that our closer connections connections Lions with them established during tho war have hae laid laI tho the foundation for or u. u continued Intimacy In commerce and banking rumors concerning prospective pros pros- advances In tho the rediscount rate ralo of or time the federal reserve system were I verified lato late on en January 22 22 when an an- was as made mauo or of a now new rate raio schedule which places commercial paper paper paper pa pa- per at 6 per cent cont fixing customers customers' advances advances ad ad- vances by b government bonds at nt 5 2 per cent Tho Time effect o of this change the change the most considerable advance advance advance ad ad- vance In discount rates ordered at an anone any anyone anyone one time thus titus far tar may may be lie greater In in restricting the supply of funds available available avail avail- vall I able allie for the carrying of commodities I than In limiting the lending power of oC I the banks which arc are in the call mar mar- ket Seme Serno time however howe will vill be he casary In order to trace the exact ef effects effects ef- ef of or the new rate schedule In tn their I relation to securities prices especially as ns much will dep depend nd upon the tho way vay In InI I which tio U o policy is applied In connection connection tion with what Is called the rationing rationing ration ing InK of oC credit It Is the tho uncertainty with respect to what was as to be bo done followed b by the present lack of or regarding rc the future effects of tho the discount advances which me mere re than anything else elso has hns kept Investors and nd traders from pursuing a more moro rigorous vigorous vigorous vig rig orous policy Tho The slight character of or ortho tho the Improvement ln |
