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The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, December 18, 1920, Image 1

Image and text provided by Louisiana State University; Baton Rouge, LA

Persistent link: http://chroniclingamerica.loc.gov/lccn/sn88064430/1920-12-18/ed-1/seq-1/

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Let Us Ha~e Your
COMV' 'RCIAL
J1THE MAD! `OURNAL 2
0~~14ADýIE(i "' <I' I u ' :" JLR\ LOF IT E VB!OAIE iOFFTICIIAVOUTAtLO
TALL~LX 1 ~ DS4 .RHN . ViR.ES. C LU E 9. {,UMB .1O
ý _ 1 hLý T4A;3; ARS.L;LlizA ~ J3A, I-:L ~.~ ..h1Z)
Sr TlE PAPrER
of those who'
. e placing of a:
at the beg;innin.
i diDh the follow:,r'
th Iland Printer,
S repute among tiL
On all orders of
to the bernfit of
- dr at least a thous
' of a for to
, l feel a he,i
sizThe order. con
Ion in price . A:h
500 of an orde:a
th eustoner about
facts of the ;rstua
d havjdge to fllur
Scustwi ombear pto ar
a The article c-i
hW the outlook wh
wti ll o papers today
S250 pader cen't ,
blfimate of the coit
- bfundanie:,t::l c
"e judge for your
wrg will bear partic.:
 mgrfades of wrfint
Incidentalch item
producthave a earng u
iation. As a p0:r. I
Siauld be ncture tha'
th papers todaelling pri
t to 2750 per cent
Pt c1914 prices 308 p
timat of the COselli
manufacture of fino
Swaitring each itere
peoportion required t,
product, give: u
oi f manufacture as
of the 1914 cost. Ir
WW the redclling price
pr est to 275 per cent
th a cost is 308 Pet
nt. The sellii..
aifs has not advanc
eet. In thedface o
a b ad coaitin market
cetan other co .
d credits, pre p u.s
of reducin pricede
have not fower. Tc.
rhe. and talke bupply
themand, in a wr., is
! poesert lull in d"- I
that prices v:J:
Pa b pward I' th~a de
is will p, while theo
S(1) coast cf i.ary, th
S(3) dc'-and. 44
and cor.eq puchae pr
of the l c. de
fcture per cent to
S been ex ills e been
Sn;t go thater. The mo
*iesasV to run at owca
the more they run thd
Sfletuations in btru.ing,
are. If the supply a
the demand, then w::ale
heupw ard.I time. Ite
pm growing, while the
sained stationary, thr
-. rd. If the vo!unae
b hands of purchaser5
the tteud will be up- I
u a low that the de
mi 1 t e f increase
i bee things in de
Sa e ahilsare true. e
bl: Per . pricesnr ir
Ct 1914 of 111
-. 'l5 400 rice
263 . 5
. 25., r
was  for a twelve
S.00 the iteday. In
at the pr ient time
Ri: $7, which is 320
of this kind could
-t e itemst mention-.
te2ring into the261
-- q2.50 3T20h
wa rns for a telve
to tow the present time
S 7, rhich is 320ufat
fader 7 perind ceuld
M n terial, a int th.
, the totale cost are
--, ° - .- . . .&._. _.
i o going aw on a trp
Sresponsible . But itwasn't us
'&,
cAnbod  n not good enough
sert  , - s-ar- for the sr H e
ot din i t aw on a trip
, .. to lHE railroads were partly much in this tire business forthat wil give him
responsible. But it wasn't uos
until the automobile reached III
U.iS. Nobby. thous present fstate of develop- Trse in the lesmall size as the big
merhi and buthatin the old barriers spend oys. car man mot foring, theis money
against travel were final--ly in th ate large his tiresize.
. s That's becaue te cost obe of first quality.
i For best result-
. ,t-. n moor g not good enough
Select V"#nr tirae- for the sm ' - car owner.
1. oozdin.4 t; the roadf
they hiave to tr elI: Mcr pccplc own anWo . wast a t_:i- that wil give him
In sandy crhi'yc')u-1
tihi, wherever the gcth g
ttb waivth-the moilne' trday than ever just asr mtch for htis money
i;a ,. ,of tires we would representbt
t. S. "oiy.citizen's pocketbook.
S L "o~'., c CViou-ct cf o in it a horse tputurselves in the sl sie as the big
Frour job fronto wh he it thr. I n the the ar owner. And
U. S. Pain. That's bccau:o tCoe cost of
For best results- IV
e-eUorSher-U. s mrcrfLi tas ;en brought
I.oyal Cor. In thinking over what kind
. within reaoh c.fi the average
~ citizen'7s poi~kctbook. of tires, we would represent
iný'W in this conmunity we tried
"`e look upon iL as part of t put ourselves in the
f our job to kepn it there. If pt! co of the car owner. And
it weren't for the trade of we believe we hit it exactly
the man t.i"h the mediumr when we selected U. S.
priced car Ithre wouldn't be Tires.
Bloom-Se ier Drug Co., Delia M ercanie Co.
Tallulah, Louisiana Dzlta, Louislana
c,_ . . .
income, and allowing for de-reciatil P
relpairs, insurance, bad debts, allk- *
-races, etc., it is probable that the net e
profit left was not far from 7 per
cent." It is therefore plain that any d
reduction more than 7 per cent would
leave the industry doing busine3s at a e
II
Now, as to supply: The mills were d
like the farmer who didn't shingle his '
h ause when it was fair weather be- i
ause he didn't need to, and when it i
3tcrmel he cou.dn't. Before the war t
jine paper mills were not built be
cause the industry wasn't profitable.
During the war materials could not be 4
obtained. Now they are so high that 1
nobody dares to build. Bui!ding costs
are three times those before the war.
With a 7 per cent yield on the pre
war investment, the mills would on-v 1
have a little more than 2 per cent ou,
Scapital required to reproduce the mills
tdnav. Mills have not been built.
What slight increase there may have
been, has come about through in.nrov
ing existing plants. The United States
r has little mcr' mill capacity on fine
epapers than in 1914.
A4i to demand-this is a different
.t-c:. The etimated increase in ase
of paper i- about RP nr cent a " '
ir, !1914 this woubl mean n:he;'..t 4
'p, r c .'t. This takes no accce'ut of
port. This is practically all a ncw
growth since 1914 and has to be add
el to the domestic increase, making
some 5Q per cent or more increa3e in
demand since 1914.
Now as to moiley and prcies: Fish
er says "If with a ,iven volume of
busincss the mircy of a country iv
doublAd, prices wil d ,ule." In other
words, the public, broadly -peaking.
is always willirg to buy food, cloth
ing, luxuries, and general supplies u
to its financial limit. Cou"inrr rtr
rercy, federal fLank issues ar.^ gov
ernnent securities, we have abljut
eight times as much mcn'y as in 11 1
In 1914 circulation was about $35
per capita. Now it is about $51 Fed
eral bank credits figure about $S.'
more per capita. The government'.
bonds, notes and securities aggeernte
some $25,000,000,000 on which as ccl
!ateral 20,000,000,000 can be borrow
ed at the banks or $200 per capita.
Counting these government securi tec
at 80 per cent we thus have $21' per
capita, aeainst $35 in 1914; or more
jthan eight times as much. With thi
buying power. prices must he high.
These factors show a supply sta
tionary for six years of r'ore, but
Si omeste. dt::and nc:r.: per c
.;greuter. and a foreign' demanr. f'):
f some 10 rer cent more cor~min fron
:L.1"
Ir.c"ase in 1 r-ight rates is a more
cor.ride:able factor in the pert: situ
ation than has bceen cie',ited. The a
average consumer of paper says "40 t
per cent increase on the old freith: t
'.ate will not affect the local covt of t
?pr la". ely." Hle figure= that tn i':
will fe the freight from the mill to tn.
n:arke_; e. i., one freight rate rep
risenting perhaps 50 cents increased
40 per cent or 20 cents a hundred.
This is only a small part of it. Tc
get a tcn of paper into the ha!.ds of
the Fublic wi:l pnobably require pa::
ing freight on ten t.s and the conse
quer.t increa.-e of about 40 per cent
on ten freight rates. For instance, it
takes from two to six tons of con! to
i make a ton of paper. It also tal:e
tbout 2,700 pounds of rag3 to ma':c I
a ton of paper, but these rags rus"
have for:r or five freight rates paid! on
them before they get to the mill; e.
i, cotton is snipped fro mthe Sou'h
to the cotton mill to the shirt man.
fa turers, from the shirt mantufactur
ers the cuttings are skippedl to the rue.
deniers, and from the rag dealer.- to
the n.ill. 31i.:cl'a:,eous chernical, m. -
,chiery.. et. also enter irto thi'. I
ad, tion, the is ,he f-igh: rate fro
.' ,1 : t1 the .rrr J.at, from th:
r r,:art to he ri, ter, r.-1 perht-.;
:::y be roughly taken as 25 cents a l
hur..lred pounds. Today it will aver- *
age 260 per cent of this rate or about i
GO cents. Figuring ten freight rates
before paper reaches the consumer. u
the pre=ent cost of freight alone will r
be $6 a hundredl, agair.~c 2.50 on the t
ncl ba.is. The last freight increa e
has occurred since the last advance, t
and has therefore not been included. t
the same th'ng i.s true of the premium
on co.! cf $ to $10 a ton.
Ccal sh;,ws a '-ituation parallel to
.'h t may happen in writing paper.
In 1918S we hai a recori pr.ductic:
ei c::eedi;z con~sumption. The spring of
1919 showzl cor.siderable stocks ir
the hands of dealer- and consumrer;.
The im:pression was. "We are getting
i'.ck to nornral." Buying was restrict- !
ed in or der to take advantage of the
expected !ow.r prices. The year 102(;
Icpcned v:,- stocks exhau tel and hinr:
cr.pfy. Th. n Euopne, short of Ent
lish coal, commence I Lav;-:g, ard the
price rose sky high. If buyirg in 191i
ha.l Leen pnorr-.:l : nd stocks in the
,' pring of 192O c^rscquently had been
_ :ornu:., I.u'h or ill , f the fpre'-=nt
-t: a re :.nd 1''h prices would have
"Gc:'!r.·r h : t n-,.r.ai" i1 ", !An
:.eans putting labor on 1914 wages,
h;.t is to say, strikes, riots, bread
ir.es, and industrial chaos. It means
fi-: r.cial cri is with mercantile fail
ires and general disaster-a period of
recovery from which would take years
to come. It is wrong, because th,
world, generally speaking, with cer
twin exceptions, is short of commodi
ties and needs the stimulus of high
prices to produce. The oil 191.
prices would si:nply acce ;tuate bu':
iHsg and cor:sumption. Stock- alreadi
low would be taken off th, mlrkie:
ard then wouli come a rebou::'l and :
sca!e of prices known only in Russia
With the poc~et s of the conrumei
bulging with money and 1914 price.
in effect, stock.; of goods would me'r
away and an orgy of waste wo,ul
follow until they were gone. Th.
vould come a period of famine ºo
,-.m-,nodities and prices like t!'ohi o'
Pet:'o.rad where a pair of boots costs
- o i ib,,. :: i:1 a cab far.. iv .,.
In oth er words, good prices are ne
ce:scry to stiu.autSe produ'tion, buil'
facto:'e.a, an .d .ir.i. in .a!:r rn :h
,onsun,ption . hr "
rom h.vinr h -h
p.ecifi'aly on fir -r
S. i :t ' f G.rm.' :
:r .. . - f r '.
"r,,lu , e;, erfuh l i ti in t
_,"t, is t,,. ..iutaa. !f E", ,I or -
::rvy or tiher u i"tti"* halt : "
hi. w '. sr".'vl It to A' ,.., . t . .i
r not \ " L h' c ... lC.*r,,' ,A
na !e; ,.f r.º_.., , e pr",- or: v,,. j 7-,P
.r. oaf:ect them. In I-l4 sr-i7ti
, o ".! , b 1t, o,,, ' st 5 ".t1 ..,
:n trediurn rayb h r.. ;.t I t, "ý ts.. :,,..
-ul, h.:t rom s to Il r'el:; ":-.e. .
t .hifting :ton..1.d the better 1 ute
:1,,! the depr a,,,i f,ree. up the .&,
!inLrkLt and en.,crlaently rag pay rs
Here' i 'he weod situation. Itle:ml
are rtFpe'' frc !t :'b hu.e .:. of *-t
.\lkne r~irn T'orre t r. Assrlu r.'lO, :
Wan iun'.,,r, 1)e.i i: "We are cunsu'.
ing lumber tbr. t times : ; t as w.
:re produ'uun; 1:." "Noe 'ganit
. ~lf-- u. r ti tI'm .: 1t ..
years age. now has r-., I...pot on.*
thait of the anoont used.'" "T
years ago the luited State,- procluee
Sits entile sup ly o: pul, wood. I'
;ow rmuch of it is inoltrte.! "Fk1i
mlreans freit,-t rates to be a:..-si
:the purchaset price." "Ten )tars SpI
the United S.:at..s produced its er,
Lire news print supply-now we i:l.
I port two-thirds of it." 'Only .ne
third of the newspapers is,.uc.1 in ::1 1
were printed oq the prodact rf A.ser
can forests." "Me'h panp a so ) )ar
now, t.. be f~'-Tghted 5si0 miles to th.
nills." "We bog :t 1.4º,O0O lo"w' d
pulp -"war I, 1 m (anada in ! 91h and
kt praces have adv-arre'd fr,,'u $1J a
cord to as bigh as $25.
Pulp nmn.ufacturers are now 'YP
ing as high as $40 to $5L a eei.t Th;s
wood situation is bad at the 'rte.ent
time when there is no biilding tA
speak of and lIttk" new rasi. aud aV
telephone aonaf~'neDar Tir to'A
woul sunlrfpp e. uhis -rolt smont
ing io sotmctinig Take FSO"5,0, .tO4
acres, are about two-thirds exhaus't)
and are being used up three t.ies as
fast as they grow. Tet 'oa.od siar
tion, while t ewly leCtumte, is ifliyt
to grow worse and prices grow s-te',F
ily higher as time goes by. Curtail
nment of use of paper would make is
difference in price, for over 9 pr
cent of our wvred s sed for thins
other than paper. There is no pro
babibty of rd'eaction in tabor rt I.
tags. Th' irtematwiaa roal si'tustioa
partic il.l if absr troubles ii
England cmntatrer, may na a .sa
higher. From these con'ideralions it
looks as if the present waiting move
ment in the market, which is wekc.m
ed by the mills;s .1rrl:ing e ste..isv
pressure, will work ,out to br'n'n a
buying muoreennt later and substan
tially higher prices that, the present
The stocks of fine paper at .the
mills are 4 per rcent less tits last
year and in the merchant's wareh,'use
are 25 per cent less. Printers' stoca'
are lao. The volume f ,f printers' saie.
up to October in 1920-averages '4
per cent greater than the 1919 aver
age. The advertising agencies indi
cate more advertising in 1921 thie
the high record of 1920. All these
things and many others indicate pres
sure for paper.
Prices of fine writing paper will not
be lower, because, even should Imyinlt
fall below mill cap:scity, the mills
would not care to sell at a loss. They
would take what business is o.fered
at present rates and close. It would
not pay them to stimulate the ma.ket
by making prices below cost.. ih
more they sold, the worse off they
would be.
Stocks are low, the print r r'.y
Sthe public using paper. Mate·.'1- ,..
tges, advancing, labor is strong, r: I
read strong and may become ,sre-c a ,ug*
eans to shut down ihe mills. Co.. hold
~fail- prices where they a0 J. The vo.,': "3..
od of not todlay produce the paper iCt .eeds.
years Writing paper varies in ut,: '.~i
th. the volume of national trade. Whe,.
co a large volume of transactions t.u.
nodi- taking place the use of writing rrp*'
high is large. It is an invariabLe rule 'a,'
l1 I "when freight cars rr -care, writir
bu,. paper is in denmar.l." 'Ire "ton mles"
reald of freight n.ovedl at the la:,e. repeat iL.
irket 20 per cent grater this year tha,: ..st.
and : It woul, layv. been l,'tter frorm 'he
ussia p oint of vwew of the putlic if profi:t
-umefi hadl been higher, so that new n ills
pricc :. u!,d have t,,.r erecteK,. Tlii i evi
d me" i I: fcn.m "he fct that while the
w-ul .;,,,.r i:iu'try entercl the war timne
Th. o ric,,l w' h lamr ' o .r;tcocks the.-.'
ne u . -ve be'n gradlua!ly reducred ur.t;l 'i
Oe ' the pre~,'t time sJtck; orl the Frrt c
Scosts the priirtc', the merchant, ani ti'r
allnlaufac'turers are at lcwv e".;,l: i ytcl
re ne- the I.lls in gencral a.Ce well . '
bulld'! with o:hers.
cn :h Now, the hu-,u~r of the Couti:'
S h, wlh h ,onsi ta of" r" .'.
I ,-', ;. jb!i :!. an dastroi. ,' "it: .' ..

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