Show oua MAKES HIGH PRICES prices continue to advance and everybody ery boly continues to pay ti them len ot of course there are some protests bu it Is a disturbing tact fact that a great part of the population is meeting advancing costs carelessly almost cheerfully in tact fact price no object has become the motto ot of such a considerable portion ot of the american purchasing public that our econom economic fe author fales are becoming alarmed the federal reserve bank of the nw new york district in its reent report on november prices declares to begh prices the buying public shows almost algosi no resistance buyers are completely indifferent or they accept thin the higher prices as quite to be expected the reckless buying that is indicated from many sources acts directly to postpone the return to lower prices newly acquired riches are being dissipated in luxuries wo we are told profiteers thus not only mulct the publican public in the first place but by the reckless expenditure ot of their ill gotten gains make prices still higher tor for the already shorn common citizen during the month of november prices of the majority of articles that enter into the cost of living advanced materially the increase of november 3rd ard of the rediscount rate did not affect the outcome according to the banks report on business conditions for the mouth month this commentary is carried in a special dispatch to the new york world from atlantic city under date of 3rd ard we are living in a dangerous dream today to day with the ever mounting costs was a warning given to the associated dress industries association of america in annual session at the Breakers HOW hotel by harry J cregge secretary treasurer ot of the national association of credit men we must prepare tor for the reaction as the peak has been reached he added the wage earner must be cautioned against his wasteful invest or th the time jime will come wh when en lie he must be curbed gambling in all forms especially stocks is an american fault it if not a disease you iress dress material men have found iio fio difficulty recently in selling merchandise no matter what the price this is unhealthy dangerous this can not so go on indefinitely brakes must be applied mr air cregge cautioned the wholesalers to advise customers not to over bay conservatism is necessary to protect the credit system of the country he said taking up price conditions in iii some detail the new york times quotes the federal danles banks report as follows it had been expected that the increase in the rediscount rate which wag the first step taken by the bank toward deflation would be reflected in the commodity price trend but this failed to develop discussing retail trade in november the banks report which was issued last night says the repressive effect of 0 tha war on personal expenditure which began to lift at the time the armistice was signed disappeared completely with most p people copl e upon the sale ot of the victory loan carefully compiled reports from several branches of retail trade made particularly with idith aview a view to determine the extent of luxury buying indicate that never before has there been so much spending such a demand for expensive articles and such disregard of prices it Is natural that new york city should be a bihary market tor for luxury buying because people from all parts of the country go to its stores to spend their surplus funds but reports from many sections of this district which includes i part of new jersey and i connecticut indicate that free spending is ia general and that the conclusions reached tor for new Y york ork apply elsewhere in small and large cities alike the foregoing would indicate that the increasing of the rediscount rate by the fedral federal Reserve Bank has not as yet found re reflection in a decrease in the cost of living in this connection the banks explanation of why the rate was increased Is interesting it reads read s the increase in rates tho only fractional was tho the first step taken by the federal reserve bank toward assuming its normal relation to the volume of 0 credit during the war and as long as the government continued to borrow on an increasing scale a i constantly increasing expansion of credit was necessary and the federal reser continued Continue don on page two 1 f RECKLESS BUYING MAKES PRICES HIGHER continued from first page ve dank bank had not only to provide the basis for such expansion but to encourage it and its rate policy was necessarily subordinated to the rates carried by tile the government bonds and certificates but when the tide turned and the governments borrowing 1 began to decrease credit contraction became not only possible but ary and it was the duty of tile the federal reserve bank hitherto the agency I 1 j of expansion to take the lead in encouraging cou raging the gradual contraction of 0 credit I 1 continuing its discussion of 0 retail ole I ta its radii sy vias as maje made ill ii it ix jitni as is lude laue L aue ii basly j alry riis ais in ilij ij ins ru furni furniture lure auto inlow i iio ailo jilo 10 aad aai i clothing cloi hiag ail a i t tended to department stores deall jg in two or more of these specia specialties ld altogether somewhat more than forty j stores and individual authorities were jated percentages showing g tc in c dease i ease above a year ag aga m n thu the N jt f total sales averaged tron froin estinia estimates les mad were as follows P C P C j inc in inc in 1 sales I 1 e d val va 1 unit Jev jewelry velry 48 44 r furs or 57 48 musical instruments 70 furniture 78 38 clothing 53 I 1 is indeterminate 1 figures were not obtainable from passenger automobile dealers because of the current shortage in cars due to the somewhat slower readjustment from rom war production it appears from tho the inquiry that the increase in the value of sales is greater than the number of units sold this difference is mainly a reflection of the increase in prices charged jewelers account tor for the fact that the total value of sales has increased only slightly mole moie than the volume of units sold on the ground chiefly that gold is the basic material of jewelry and that gold because of its fiat price hos has not increased in dollar value furriers in telling why price increases in certain furs have not produced a greater difference say that the introduction of many furs not know n befog baroro 3 in this market has tended to equalize the average of prices to high prices the buying public sh shows 0 ws almost no resistance resi stence buyers are either completely indifferent or they accept the higher prices as qulie to be expected many of thee new buyers are unaccustomed to 0 o former prices and accept the new scale therefore without question otien paying in cash reports from the stores indicate that the wave of buying done dona by wage earners has somewhat sit side a result it was suggested of strikes or unemployment caused by strikes people who have possessed v roal sil th tor for some time also have been disposed to limit their es relying on tile the present supplies to carry them through in the hope that prices may come down the consensus of opinion among the tha retailers is that the bulk of the buying comes from the intermediate classes and mainly from those whose wages or income has risen far above the amount required to maintain their former standard of living the reckless buying that is indicated from many sources acts tl renly to postpone the return to lower prices to produce in tha coun tiye industries and to hamper tho the capacity of this country not only to maintain its financial po position in the I 1 word vord but to serve those parti par i of the which are still dufferin suffering gaev isly from the losses of war IN with inith ith jis 1 point of view the wisest retailers are fully in accord literary digest |