TWENTY-FIRST ANNUAL YEAR BOOK— PART VI 469 



upon practicing economy at the present time as it was upon the reckless 

 purchasing of articles, regardless of price, one year ago. There are sev- 

 eral reasons for this: the money market is "tight," industrial employes are 

 being discharged in rather large numbers, and there is a well defined un- 

 certainty as to what the winter will bring forth. Then too, the public 

 conscience has awakened stern protest against the mania of spending 

 which ran rampant at the close of the war. This tendency of consumers 

 to hold off buying has naturally caused an accumulation of certain stocks 

 and a considerable degree of liquidation has taken place in merchandise 

 in the last four months. From present indications these liquidations will 

 continue for some time. 



Secretary of Commerce Alexander, apparently has well summarized 

 the effects of these price slumps when he stated; "No fears need be en- 

 teitained that these lower prices will be followed by a falling off in busi- 

 ness, lessened production or any other dullness which characterized 

 spring trade in many lines. On the contrary they will give such an im- 

 petus to retail buying as to off-set any danger of over-production. In short, 

 I believe that the let-up in buying has been due entirely to high prices; 

 a great demand still exists which will manifest itself when goods reach a 

 lower price level." 



"'A discriminating public will not buy unless there is a very material 

 reduction in prices. There is no lack of demand, but the trouble lies in 

 the refusal or inability of the people longer to pay high prices. I believe 

 that the out-put of our mills can readily be consumed at lower prices and 

 am very gratified to note that a re-adjustment of prfces has begun." 



Whatever may be the hopes of labor, it appears almost certain that 

 wages will fall in sympathy with the general downward trend of prices. 

 Certain it is at least that competition for available jobs will cause pro- 

 duction per man-hour to increase. While increased production on the 

 part of labor is to be regarded as a healthy sign, it is to be hoped that 

 the reaction towards lower wages will not be carried to undue lengths. 

 That a reduction in wages, particularly of the unskilled class, should 

 take place is generally regarded as being necessary by manufacturers, 

 farmers, professional men and that great class of workers who do not fall 

 Into any of these categories. However, as stated, it is to be hoped that 

 the reduction will not be great enough to lower labor standards of living 

 to an unjust degree. As in every other commodity, however, the inexor- 

 able law of supply and demand will undoubtedly be the deciding factor in 

 determining wage levels. 



It was especially fortunate that a fairly plentiful supply of labor was 

 available at harvest time this year. With bumper crops prevailing in 

 most of the food producing sections, it would have been almost impossible 

 to garner them under such conditions as have been previously prevailing 

 for several years. 



While still not entirely satisfactory, the railroad situation has shown 

 a decided improvement in this state, and farmers are experiencing less 

 difficulty in securing cars with which to market their products. 



The coal shortage is still acute in certain parts of the state, and with 

 hints of lessened production during the coming months, the probabilities 



