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FILE COPY - LIBRARY FQR a ddress of DISTRICT ' the OF RELEASE comptroller COLUMBIA TUESDAY, 1:1 M O R N I N G or ?ANKERS APRIL 26, to PAPERS. currency, ASSOCIATION, 1921, AT 8 ^DNESDAY, d. AT r. THE APRIL cris?inger, ® w TO 1'LLARD 27, 1921. rffore HOTEL, the WASHINGTON, ^ one were seeking a particular commodity that, just at this time, might ttc 8t effectively illustrate the measure cf transgression against the law of supply and demand, * suspect that m*ney w u l d T decidedly outrun the supply. heref-re, T serve the purpose. 1 he demand regard a gathering cf ^ m i l i a r i n their c-m realm with the normal operations and present cf that law, as an appropriate occasion fcr a l i t t l e bankers, suspension lecture on that fine old statute which we a l l deeply revere but comrcnly honor more i n the breech than the observance. B ° e laware c cash, or cats or whisky, several reasons ^ t s of while that people ago. But would trade associating no particular The knew a Could man liquid he have who chiefly banker put out in nearly new, low for inquire at this o f f i c e . advertisement impressed Part cf O h i o w o u l d t r a d e a pump f o r w h i s k y would h a v e *-little -t was published 1828: ounty, Ohio,, January 3, F o r S a l e — A valuable pump abcut 36 feet long, F J y way cf introduction let me read an advertisement- recently, pump, with in well bankers Washington, and water since * I've anybody in been unbelievable to have for T me. hat become whisky. been here - our me convinced Y ou know, v but m that 1 ve looking now. that asset - looked a century "adM should a non-freezable ahead and have asset. known been that H a banker e had in our vision, have day. else - H a how we would automobiles - ° u r radiators demand require it for our rad iators? Observe the law of supply and demand at work. •'hisky. The supply i s limited, It doesn't matter. the demand unappeasable, insistent. - T h e price? To buy it you must take a tonneau-full of Federal Reserve -2much as a R ussian, shopping for a pair of shoes, requires a baggage-car load of roubles. n the century's development of public regard for this l i q u i d , a sset, we may find illumination of the unfettered operation cf the law of demand. Price. a3s If Scarcity, coupled with the desire to have, things people need to e a t , should and does f i x the wear and hcuse them, cculd be bought with ^nfortunately for us a l l , and demand ia in these respects as dead as a anufacturers, Jobbers, wholesalers, N the law of sup- ew England salted mackerel, retai3.ern, laborers — are a l l in some ° r t of combination to frustrate this fundamental law of economics. to supply urance that the price was governed by the same unfettered law, our .economic R u b l e s would soon solve themselves. 3 non-freezable "get h i s " E a c h is out first. * realize that * am offering you no new thought when * say that at this motte nt this very condition i s the underlying cause of industrial and business ^aralysis, T hese combinations - gentlemen's agreements, or what not - have S°tten prices of things to the point where there is no relation between cost of w materials and cost of production; to the consumer; no relation between cost of production and in short, where there i s no relation between value and price* Th e consumers know t h i s , and so they are waiting. - ^"hey have joined the ^ r °cession of interests whose motto is "we'll get our3 f i r s t " . - -hey are de- * er mined to buy no more than absolute needs in a market thus unconscionably f i x e d . T hat there i s now no proper relation between production cost and consumer's C ° 3 t is constantly proved. A farmer took 22 calf3kias to town and received T for thlQ1& the price of a pair of shoes at $. 1 2 . 5 0 , and a cash balance of a ^1.20. he •f ^Qr Of sells his fatted shee£ at 8 cents per pound; but you pay $ 1 . 5 0 at a good E logical relationship between costs and prices prevails throughout g&mut of for one n g l i s h mutton chop weighing about s i x ounces, ^he samethe utter lack vJUt 2 4 19'W y^ccJ . -3i and in about everything else that can be controlled. A 3 to meats, * can you, of my own knowledge, that it is not the packer that i s chiefly recpon8 ^le. T^e responsibility l i e s somewhere between him an'l yoi,-r et^aachs,. ^he department stores and retailers generally are apparently reducing prices. e y take off something, and in a degree are making the public believe they are lj Pric a efore last October's u t are they? A ©s plus a reasonable profit? B a B *g their share of the loss. A re they selling at replacement n illustration will point the retailer, question: not in Washington, bought f?.annels t 4? . , cents per yard, and sold at 60, which we w i l l agree gave a f a i r and reason9 margin for expenses and profit. Q nel 3 at 20 cents the yard. w B u t later in °ctober he bought the same hat did he do? H e put on a sale, offering these ( W nj n iels at 50 cents the yard. 1 have the wholesaler's word for t h i s , ^'hat i s , the f i r s t transaction he had a margin of 43 per C3i>.t; but on the later one, 'tfith the pretense that he was giving customers the benefit of a great ^ s h i n g of prices, he had the unconscionable profit of 150 per cent. ^Ust another human example in relation to housing that happened to me in e nt experience. I bought $ 5 7 , 0 0 worth of lumber to make a few repairs on an ^ a r n , and three carpenters * assigned to do the work consumed S s 00 in three time rolling cigarettes and f i l l i n g their pipes, when one day was ample to do . rough work; theirs A nd then there i s complaint of hign rents. examples of this sort of thing indefinitely, Tu »ese conditions a f f e c t , have. There mugt generally, h e / were but it is the food, clothing, housing, that people be a vital readjustment of wages before we can have a ftent reconstruction and industrial readjustment, u T "first". a r y . multiply VP e s* smight S t - ^ut how can we, a nation siness men, expect wage-earners to agree to this while the middleman not ' Passes on h i s losses to the consumer, but exacts an unreasonable profit on ^Placements? * da ys hope work everybody from every industry. increased then People need if we Prosperity cannot be based and thrice and economic - begin we earner happiness °ur that wage by h a l f - h e a r t e d work more ^ s i r understand now A save. contentment evolution to put T work. their be a of our the people failure lionest-tc-GoiTi poise nor can is and national work and follow these resources saving, cardinal the their people business - yes, and their A and truths all the work. T Conscience br ab prosper assured. unless into an economic hour permanently conscience have idleness, neod be must restore on when will will shall he nd and left the al£ar of the church °ught i n t o o u r d a i l y w o r k a n d b u s i n e s s . <>ut a T correct he t r ader3, Co ®pass SQ rve first understanding essential manufacturers, of will be willing °ut of the time is coming, *il God-fearing ow a ^orld that to a sorely and by such their good-will, serve at that will T a when he fair big demands be content with distressed. may this direct and wage for must will it, and nothing Nation ccme those is who for their new be the and service fervid for be at the are T business to the the guiding be bring served, by men, the t h o s e wh< work. ethics, honest and people. conscience last to hen, day's give must business course honest man m u s t else; live an t necessary brotherhood. business fact justice rule and follow, the absolutely and x service. readjustment fellowship, it, a serve actions well, reward. will who economic square useful is in this no his these ve**y f a s t , fair requires people only to T does between reconstruction for liberty k n step righteousness, service C i at of a people light in
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