Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TIRADE
VOL.
LXIH. No. 24
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York, Dec. 9, 1916
* lnK }i£$£^ rent *
I H E approach of the Yuletide season marks the closing of a year that will go
on record as one of the most remarkable in the industrial and financial
history of this country. Despite a hard fought presidential campaign—
usually a disturbing factor to business—there has been a steadily increasing
betterment in domestic conditions month after month, which, augmented by our
unparalleled export trade, brought about in part through the needs of the European
nations engaged in warfare—has created an activity in all branches of industry that
has not only taxed the resources of our factories, but of our railroads and ships, and
has poured into this country gold in such prodigious quantities in payment for goods
purchased by foreign nations, as to cause some worry in the financial world as to how
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it may be utilized advantageously.
The swollen gold tide in circulation at the close of the fiscal year was such that, theoretically, every man,
woman and child in the United States had a $39.28 interest in it. The United States Treasurer's report,
published last week, showed $4,024,097,762, in circulation, an increase of $454,878,188 over 1915, with about
half of the amount in gold. The gold hoarding was so extensive that Treasury holdings at the close of the
year were $1,803,493,933, an increase of $420,533,943 over the preceding year, while imports of gold were
$494,009,301 and exports only $90,249,548. This is certainly an abnormal condition. We usually worry
about the need of gold; but now its abundance causes uneasiness to financiers.
As regards the huge gold imports, it must be recognized that these are a sign and consequence
of prosperity. That they are so much larger than thev have been in any previous prosperous period, obviously
results from the fact that this country's present economic strength—especially in its international relations—
is correspondingly greater than it has ever been before.
The unprecedented activity in our factories, the demands for and the shortage of labor, and the cutting
off of imports, particularly from Germany, created a shortage of supplies in a great many lines of industry,
which has resulted in increasing prices for all kinds of manufactured products, and the piano trade is no
exception.
Despite the most skillful factory management, and the closest scrutiny of costs, the fact remains that the
completed piano to-day is costing from $15.00 to $60.00 more than it did a year ago. Interesting
and authoritative figures on this subject appear elsewhere in The Review.
At no time has it been so necessary to maintain a close watch on the productive end of the business
as at present, when so many manufacturers are moving in so narrow a limit in the matter of wholesale
prices. The wise manufacturer will not, and no man should take chances in view of the present trend in the
raw material markets. He should see to it that his prices are in conformity with the cost of manufacture,
affording a fair profit on his investment.
There is apparent in the trade a peculiar hesitancy about raising the wholesale prices of instruments
although admittedly an absolute necessity. This is the veriest sentimentality, and a most unbusinesslike policy.
No piano merchant will object to paying more or asking more money for pianos when he understands
the conditions under which the manufacturers are working to-day. It only needs a campaign of enlightenment
on the part of the manufacturer so that the dealer mav thoroughly understand what it costs to construct pianos,
and the inability to supply them at anywhere near the old price. It is then up to the dealer to educate the
public and get his proper prices so that he may also do business at a fair profit.
(Continued on page 5)