any radical change in design is brought out by some 
of our competitors. However, our principal trouble, 
since the 1921 slump, is the timidity on the part of 
‘he retail merchant. This is perhaps natural, as 
nany of them came very near going broke; in fact, 
some of them continued in business by the indul- 
gence of their creditors, and their recollections of 
what happened when they were caught with a big 
stock of goods and a tremendous decline in markets 
svershadowed everything else. 
“This, however, has been gradually disappearing 
in 1925 and 1926 and my observation in knocking 
about the country, which I do quite a bit, is that the 
same is true in a good many other lines of business. 
The shelves of the ordinary country store are no 
longer inflated. While many people are no doubt 
taking advantage of the improved transportation 
facilities to the end of carrying a smaller investment 
In inventories, yet it is perhaps also true that in the 
old days inventories were somewhat excessive. 
“My notion is that this will soon find its natural 
level. The most effective means we have found of 
dealing with the situation is that of quantity dis 
counts, pricing the goods so as to make it an ob- 
ject for the customer to buy in reasonable amounts. 
Perhaps as you say the manufacturers in some lines 
nay have to modify their arrangements for carrying 
stock to some extent, but my guess is that this is not 
going to prove as radical or drastic a change as 
seemed probable a couple of vears aca” 
Fear or Price Drecrines a Factor 
Mr. Wirriam BurTerworTH, who is the 
president of Deere & Company, one of the 
leading manufacturers of agricultural imple- 
ments, is of the opinion that their industry 
nas felt the effects of “hand-to-mouth” buy- 
ing more than any other in the country. But, 
he states, as does Mr. Legge, that although 
such buying was justified in view of the 1921 
situation, he believes that it will gradually 
pass away as confidence is restored. Com- 
menting on the effect of the practice on the 
wgricultural implement industry, Mr. Butter- 
worth writes as follows: 
“Merchants who sell agricultural implements were 
erribly hurt by the sudden and complete stoppage 
of buying on the part of the farmer, This left them 
with large inventories and contracts for more ma- 
‘hinery. Naturally enough, they have been and 
sontinue to be timid about buving ahead. but we 
wtice a very great change in the last two years. 
They are beginning now to buy in carload lots and 
0 anticipate the future somewhat 
“There is another factor which naturally pre- 
vents their buying strongly and that is the slow 
Jecline of prices. This of course is not very marked, 
out looking back over the past there has always been 
‘hat long-continued and slow decline of prices after 
the great wars, so, naturally enough, until we all 
get used to the rate of decline we are more or less 
:areful in our purchases. 
“It is quite likely that the same situation, al- 
hough not in such an intense degree, exists in other 
ines. 
“I do not think there is so much in the idea that 
on account of prompt deliveries, retailers are not 
ouying. The fact of the matter is, when a man 
walks into a store he wants what he asks for while 
1e is waiting. 
“I think the ‘hand-to-mouth’ buying affects the 
manufacturers’ program, but I believe, like the im- 
plement industry, they can by degrees size up the 
situation and eventually adapt their production pro- 
yram to it.” 
CAUSES ATTRIBUTED TO BELIEF IN GRADUAL 
DzecrLine iv VALUES 
Mr. G. C. WEvLAND, the president of the 
f. I. Case Plow Works, Inc., has this to say 
with respect to the situation: 
“Hand-to-mouth buying undoubtedly increases the 
cost of distribution. Merchandising is becoming 
more and more a matter of service. Service costs 
monev 
“It strikes me that it is going to be increasingly 
lifhcult to get goods into consumers’ hands at the 
ower prices they expect as long as ‘hand-to-mouth’ 
yuying continues, which I think will be for an in- 
{efinite period. 
“Regardless, however, of what the disadvantages 
nay be, your consumer and retailer are exercising 
setter buying judgment than at any period hereto- 
fore. ‘The manufacturer may have to carry the bur- 
len, because I doubt that competitive conditions 
will permit of his abandoning mass production, al- 
‘hough he is inclined to play the game as safely as 
sossible. Personally, I am not at all unfavorable to 
hand-to-mouth’ buving.”