The Bismarck Tribune Newspaper, October 26, 1934, Page 2

Se Oa ne ee ET ECONOMIC THEORY DOESN'T HOLD IN DEPRESSION FIGHT Noted Marketing Expert De- fends AAA Against Law of Supply and Demand BY LOUIS BADER t Associate Professor of Marketing New York University i As the courage of business men} rises with a gradual improvement in economic affairs, certain phases in} the federal government's program to restore prosperity come under at- tack. Much of the criticism has to do with reforms such as the price fixing features of the NRA codes and} the AAA attempts to regulate supply. Most of the criticism takes this form: “price fixing cannot be enforced be- cause the only way prices can be satisfactorily enforced is through the law of supply and demand; the re- form, therefore, cannot reach at- tainment and is impossible.” From the wistful look on the faces of those who parrot-like recite that formula one would think that the speaker wanted to give the impres- sion that the law of supply and de- mand was some natural or supernat- ural force that is at work, irrespec- tive of what men wish to do, and when flouted visits upon society some dire consequences. An econo- mist may, perhaps, be charged with having coined the phrase but most | economists probably do not so regard it, When it is used in that manner, unless ignorantly, it is purely propa- ganda. Economic principles are gen- shorts-clad men are the newest even among trained critice, havi shafts, the bleak\street, and th clad leaping figures. Flying through the air with the greatest of ease (without any need for a flying trapeze) these ed them and won first prize (and $1500) in the $2nd international exhibition at Pittsburgh. hints {t portrays his impressions during an auto trip south from Scranton, Pa. The cavernous mine It Is all very impressionistic, or abstract, or surrealistic, or something, sa) THE BISMARCK ‘TRIBUNE. FRIDAY, OCTOBER 26, 1934 Three Guesses—What’s This $1,500 Painting All About! sensation of the art world. Peter Blume, Russian-American, paint- Few, e been bold enough to guess what the picture means, though Blume ie armor-plate battleship mast form a grim background for the white- art critics. eralized statements of many similar observations of what men do trying|tion of the demand. Manutactarets| ts make a living under a given set/by means of combination, trade asso- | of conditions. When those condi-!ciations; unified control of supply; | tions do not exist then it becomes}branding, advertising and other forms | necessary to make further observa-|ot sales promotion; and shortened | tions and arrive at the principles dis-/hours of operation, have secured a closed by the new study. fair measure of control. Prices for Rule Doesn't Fold the products produced by such man- In the case of the so-called law of|ufacturers have not fluctuated in supply and demand all the econo-|the ways expected under conditions, mist did was to say that his observa-|of perfect competition. Prices of tions suggest that under conditions|farm products, a relatively few man-— of perfect competition prices of par-|ufactures, and wages of unorganized ; ticular commodities will go up or go|labor have, however, widely fluctu- | down as the supply or demand for| ated. | them vary. Asa result of these| The depression caused a few more various movements equilibrium be-| products and services | tween demand and supply must/subject to competition and price) quickly result and consequently wejvariations. Industries and trades” could never have wide fluctuations}seemed to be happy to get under: iu prices and business activity, and|the cover of the NRA codes to elim-! the business cycle would not be a|inate all price competition. The AAA part of our economic life. moved to make it possible for farm- By perfect competition is meant ajers to have the same opportunity of market in which thousands of pro-|enjoying the profits of imperfect com- ducers and consumers sell goods and where the withdrawal of|set up to do a similar thing organised lebor. one of them, for example, a bor. , wheat farmer oF an. unskilled laborer, Strinta Me Reaiitic” or = housewife, @ill mot have an ap-| Fuséifess,men should be realistic. smapply andjonly when every ‘elas, and that|to the interest of one man to have it all have equal abilities.| work, it also may not be to the in- Under these the forces of | terest of another to have it work, and: supply and demand operate roughly|under democratic control that is as! as outlined above. The tendency!much his right as the other's; he! under such conditions is for profits|must be protected in it. Recovery to disappear for all but the most|we want, but reform may be just as efficient producers. necessary, otherwise we may shortly again be seeking recovery. A ma- ‘The economist also says that prob-|Ccline that operates only half the ably we have never had these ideajtime because of necessary repairs is! conditions in any market; that prob-|hardly a good machine. It might! ably they are impossible of attain-|pay to recover slowly and try to acterized more in prosperity and less}and prevent the price disparities so n depressions by conditions of im-|fatal to economic prosperity. Co-op- Perfect competition. For proof we/eration with the government in the need only to look around; on the one! use of what is workable or must be hand, steel rails sold for 20 years at| Worked in the government's program 43 | ton; many branded, nationally|may yet pay substantial dividends. advertised articles similarly did not|After all the business man's choice is change prices for years. Even in the|limited to (1) perfect competition depression organized labor maintains| with the tendency for profits to dis- ites wage rates Year in and year out,|/appear; (2) imperfect competition while utility rates tend steadily up-| accompanied by the chaos of the bus- ward rather than to fluctuate, On|iness cycle, or (3) the acceptance of the other hand the prices of many, if|more control of his business activi- not all, farm products fluctuate|ties by society, with the incidental severely from day to day as condt-| benefit of greater security. tions of supply and demand change; —_— scme unbranded, manufactured pro-| It has been estimated, through re- ducts change in price reasonably|cent computation, that a temperature Tepidly, and organized labor ranges| of 4 trillion Fahrenheit would anni- from subsistance to poverty planes of| hilate all matter. Living and back again as we pass from prosperity to depression and ‘gain to prosperity. Interest and tents are frequently so rigid the fluctuations downward meet them- velves coming back as prosperity emerges from depression. These are the usual conditions and denote im- verfect competition. ‘These disparities in prices between Particular goods and services cause itresses and strains which finally og coy begin the down-swing of tes, Ib, cycle. ey are inherent a tapitalistic economy. pe in|fy - 0” Sale Saturday, Oct, 27th business desires to earn a profit. The Burg Co. Bismarck ON. Dak. THE BURG CO. FALL FESTIVAL SALE CONTINUES ' Profits can best be earned under a. control of the supply or a manipula- +. Real Throat relief! Medicated with ingredi- ents of Vicks VapoRub DON’T FORGET TO VOTE ‘The Tribune prints herewith an application for an absent. vote! ballot that everyone may cast his vote at the election on November Ay "Those who expect to be absent from the county on election day have the right to cast Interests. county auditor. structions for voting it. APPLICATION FOR ABSENT VOTERS BALLOT Seevevccercccceveec, & uly qualified elector of » State of North Dakota, and to my best d to vote in such precinct at the next General Paci neces a oe » Novem , , herel ake J ‘or an official absent voters ballot to be voted by me peg Ae election. Dated .......... » 1984, and buy|retition; and Section 7a of NIRA was Cr, un- jbeen convicted of woot ment, and that markets are char-/effect those reforms which destroy! ~ MILLER SENTENCES iatct se te n“e case of Kii Robinson was dis- | missed because he had been held in 2 i SMUGGLIN | Jail in default of bond money since his arrest. ——— With the exception of Noel Staple- Federal Court Term at Grand! ton. Judge Miller said he imposed {light penalties because they were first Forks Adjourned Thurs- offenders and because he realised day Afternoon they were subject to temptation due Grand Forks, N. D., Oct. 26.—(@—/ the United States. Judge Andrew Miller adjourned aj Arthur Richardson and Walter term of United States district court| Hendrickson, charged with | having here late Thursday after sentencing | Liquor on the Turtle Mountain, §a¢ 2¢ men charged with smuggling grain| dian reservation, were. - the into the United States from ja minimum sentence of 60 days -in and dismissing the case of a gist @é-’ jail and ® $190 fine each. i fendant charged iat @ sees a court’session opened Tuesday ‘The was Kraus Named Drapeau National | of ‘40 and ‘8’ this country without payment of! Miami, Fis., Oct. 26—(—John D. duty. He had pleaded guilty to the|Crowley of Cambridge, Mass. was offense. pence poiey rears De Fer of Eighteen others were ordered to) “40 and 8,” play organization of pay fines of $50 each or serve 30| the American Legion, at the close of days in jail. her 16th annual national conv. They were Alexander and Gilbert} here yesterday. ; policy, known as e scale required: by Smerer, Lester White, Richey Olson,| Other national officers ch y, invariably bear the Of} European custom yet never sanctioned | Lioyd Barker, Ernest Schwartz, James cluded Drapeau National, Ed Kraus, | Presidents, not of the Secretaries of|/by Congress, were the. politically-' C’Donnell, Penney Orton, Peter Hen-| Fargo, N. D. | State who may actually have written! picked diplomats still in vogue. H drickson, Melvin P. Hendrickson, | jthem. That is true from Washing- Attitude Toward War James Brown, F. L. Leftwich, Charles) The American motion picture in-| Brown, Joseph Stapleton, Leo C., dustry is destroying the good name Stapleton, Melbourne Stapleton, Wil-|Of America in the Far East, where lis Friske and Roland Jellerson. censorship is not effective —Bishop x wkekeeeeee . DEPARTMENT OF STATE Washington, D. C., Oct. 26.—An abiding national policy against en- tangling alliances, handed down from. the inception of the American scheme of government, stripped its diplomat- ic agents from the start of much of the business popularly associated with international diplomacy. They could neither offeg nor solicit military or political alliances, play no part in bal- ance-of-power groupings that have in- fluenced the history of the world. AS onlookers at the great game of in- ternational polities as played in Bu- rope. They have all the special dip- lJomatic privileges, just as the State Department at home has all the rank, dignity, and cloak of mystery, by world custom surrounding f tries and their doings; but they and the Department have always been lomacy. The Constitution charges the Presi- dent specifically with responsibility for foreign affairs. While the Secre- tary of State, by custom and statute, ranks first in the Cabinet and first in presidential succession in the event: of @ vacancy when no Vice President is available to take over White House duties, actually he is only chief. ad- viser to the President on foreign af- fairs. He recommends but does not make policy. His power and influence dent to treaties or atplarua to appoint- ments, is a far more important poten- ‘big men in national affairs. The port- oveaN! by FredericJ.Haskin ~ » if) A Condensed Chapter from the Authors New Book Today waekekaeka sored Manchurian state. It is true of President Franklin D. Roosevelt's “good neighbor” doctrine, with im- plementation of which the State De- Partment under direction of Secre- tary Hull was engrossed. There are some notable exceptions, all of which bear on efforts of Ameri- can statesmen toward world peace. ‘The series of arbitration treaties com- mitfing the United States bilaterally with most of the nations of the world to peaceful adjustment of disputes, bear the name of Secretary Root. The conciliation treaties which supple- ment them and seek to reach dis- agreements which even arbitration could not solve, are known as the Bryan treaties. The great post-war Peace effort to curb armaments at sea is attributed to Secretary Hughes. ‘The universal antiwar pact, the only such pledge ever written and which bans resort to arms as a means of for- warding national policy, bears the name of Secretary Kellogg in associa- tion with that of his French col- league in the task, the late Premier Briand. There is no place here for recapi- tulation of the early trials of Ameri- can diplomacy. There were brilliant individual achievements but by and|’ large not until the time of the War with Spain, when American entry into! the group of world: powers changed the picture, did the present organiza- tion of the Department of State and Progress of moulding a career for- eign service of trained, nonpolitical appointees chosen by competitive ex- amination and specialized for life, has been increasingly rapid under recent Presidents. The proportion of career to political diplomatic appointees un- der President Franklin D. Roosevelt reached its highest mark up to that time. Men with decades of experience, knowledge of the languages, customs, follo carries with it, under presidential!and history of the people approval, of vast scope and significance. names of the men who have been stepping stone to the White House,| and many others have been presiden- tial nominees, Two chief justices — ee Formulation of Doctrines and Treaties ton’s “no entangling alliances” ‘through Monroe's declaration of his famous hands off the American con- ,tinent warning, right down to Presi- the power and opportunity|whom they lived as representatives to initiate international reaps 4 ine fate Mien States, were increas-|- to ‘safeguard American neutrality with- out sacrifices of sovereign rights as a non-belligerent. Failure came with American entry into the struggle as, & belligerent, although President Wil- son simultaneously launched his ef- fort to foster world pe:.ce. For do- mestic reasons the United States did not join the League of Nations after the war, although ur ‘er all post-war Presidents and Secretaries of State plomacy sonable reductions jn armaments a: held out’ a helping hand in sol post-war financial and economic prob: lems among the former enemy states The United States; stood and stil! stands, however, stat aloof from foreign political and balan- ces, it ited closely in ffort toward peace std the promoxion of| Mandan Marg Named human welfare undertaken under, As Aid Igrano league auspices. During the war, but before Ameri- can participation, American diplomats were charged with th care of nation- als of most of the belligerents in. the. various countries, and also with the erican Legion for 1935 placed in the hands of Frank N. Bel- diplomatic interests of the warring|grano, Jr., of San Francisco, as the states. Embassies and legations of|16th annual convention| unanimously the United States became channels) elected men to Edward A, of inter-belligerent communication,| Hayes of Decatur, Ill. virtually the only official channels.| Chosen to serve with! Belgrano as In addition, caring for American na-/ national vice included: tionals in the war zones imposed heavy| John Kennelly of Mai » N.D. new tasks on. all foreign service per- sonnel. The service expanded by) 9% leaps and bounds. It was never re- of duced to its old pre-war footing. With the end of the struggle, American Di- maintenance of embassies on a scale beyond the range of official salaries and allowances, a The World War threw a heavy burd- en upon the Department of State.' Under Secretary Bryan its double objective by order of President Wil-| Noel Stapleton, who previously had Herbert Logan Roots of Hankowsdent Hoover's non-recognition of!son was to find means of inducing ina. . smuggling, -}|Manchuluo, the new Japanese-spon- |peace among the belligerents and to; ‘When ai is “out of sorts” the doctor frat juestion is about the bowels. And the second, what is [.; being taken to help them. Doctors use laxatives, and atve. Doyo hy? ative. rou know wi r Doctors and hos italy use liquid ae ae Yoon by agile jamage sometimes done by ly concentrated drugs in the form of pills or tablets! know that a ‘ ly made liquid laxative con- aining senna (a natural laxative) does not do this harm. And they use liquid laxatives to relieve the bowels, because the dose can be easily regulated. Trrcrnioe st tan bain, Bi yous thee ea" There is a preparation of fine herbs, you are 1 diet—don’ resort to si cal ics wi Pure pepsin, cascara, and only Beaveciny senna which does rey wie all need of harsh cathartics. The active sennain Dr. Caldwell’s Syrup ope laxative enough for any adult, mild If you are “not y there ipa enough for any) child. And are other valuable ingredients in this . blame it on condition, lightful syrup, gat or your age. Try the help ef Syrup Pepsin will usually relieve’ Mand a case of constipation overnight. If a further dose is necessary, you give then Heep ose: each time tess, until - move ly, spe mee ie iS are moving ari com every day—you' a thoroughly, without ay help know most al If you have a youngster who Native tobacco grower tell- © 1934, Lesser & Dtvans Teascon Co, Let's find out why | grows a kind of tobacco that cultivation that are used to any for their spicy aroma, and a blend of the right kinds of Turk- ish tobacco with our own home- grown tobaccos is better than any one kind used alone. blending these different tobaccos Turkish whecco is curd. chat we make Chesterfield the cigarette that’s milder, the ciga- rette that tastes better. to a good cigarette i Om the sunny slopes of Smyrna » a's de the fertile fields of Macedonia... along the ‘shores of the Black Sea... 8s different from any other tobacco ix the world, the only tobaccos of foreign Turkish tobaccos are famous In Chesterfield we balance mild, ripe tobaccos grown in this country with just the right of Turkish, It is by blending and cross- urkish tobacco is so important CRETE STUECKCOLD KOSTELANETE ORCHESTRA AND CHORUS 8 P.M. (c. 6.7.) —conumaua NETWORK mm