Music Trade Review

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Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
AN ETHICAL AND A BUSINESS QUESTION.
(Continued from page 3.)
in accentuating pubilc interest through, the children in pianos, and if piano merchants in every town
were to use their influence systematically with their local Boards of Education they would accom-
plish much for themselves and for the musical future of the nation.
The talking machine makers have wisely planned for the future. They do not propose that
public interest shall be diminished in the slightest degree in the talking machine, and through care-
fully maintained educational work they are creating admirers among millions of children for talking
machines, who can date back to their early childhood experiences where the talking machine enter-
tained them in their schools.
A year ago one house had less than twelve hundred schools using its product, and to-day nearly
three thousand schools, scattered all over America, are using the same talking machine in their
daily work.
Think for one moment what effect this will have upon the future of talking machines, and the
future of music for that matter!
Why should the piano men be wrapped in a mantle of indifference to
the future musical needs of our people? That is a question which is put
up to each one. It is a country-wide question—not localized—but one
which has a business and ethical relation to every manufacturing and
retail house in this broad land of ours.
Reasons For An Increase in Piano Prices.
M
ANUFACTURERS all over the country are fast recognizing
the fact, emphasized so frequently in The Review of late,
that an increase in the wholesale price of pianos and players must
shortly be made, if the piano industry is to retain its firm economic
foundation. And while there is a disposition on the part of every-
one to blame the war in Europe for any and all inconveniences we
may suffer, still it cannot be denied that the European war has given
rise to conditions which are plainly reflected in the piano industry.
In times of distress—financial, industrial, or national—the
trades which first feel the effect of the resulting untoward condi-
tions, and which rally from them last, are those trades which have
to do with the so-called luxuries. This accepted rule in economics
needs no elaboration. Exception may be taken to the classification
of the piano as a luxury. The intellectual progress of any nation
can be measured by its standards of music, and to-day our civiliza-
tion demands music as a part oi its ordinary routine, and its de-
mand is supplied to a greater degree by the piano than by any other
instrument. Yet the piano, though its music is part of the web and
woof of our daily life, is a luxury, viewed from an economic stand-
point, and must be regarded as such in discussions of economic
conditions.
This fact is further proved by the application to the piano in-
dustry of the rule cited above. Untoward conditions affect the
trade in luxuries in two ways. The straitened financial condition
of the public may cause a decrease in the demand, as witness the
abnormally poor season which existed in the theatrical business
during the greater part of 1915. The public, saving its money
(when it had any to save), abstained from the luxury of theatrical
entertainment, and Broadway suffered accordingly. Again, the
source of supply may be diminished or impaired, because of the
greater attention which is given to the conservation of the actual
necessities of life.
The piano trade has suffered from a lack of demand for the
past two or three years, but this suffering has been ended, if the
vast increase in trade during the past three or four months indicates,
as we believe it does, a return of prosperity and financial ease. But
having suffered from the first ailment peculiar to non-necessities,
the piano trade is now facing an attack of the other ill to which its
class is susceptible—an impaired source of supply. Threatened
with this danger, the piano trade might sink off into a quiet somno-
lence, were it not for the return of the demand for its wares. This
demand must and will be supplied, but the scarcity of supplies per-
force will add to the cost of manufacturing, and the logical outcome
is an increase in the selling price. The return of a normal demand
for pianos will bring stability and prosperity to the trade, but it
will only do so provided the manufacturer advances his prices so as
to adequately cover the greatly increased cost of raw materials and
production.
There is hardly a material used in piano construction which
has not steadily gone skyward in price since the declaration of war
in Europe. Steel, brass, bronze, leathers, iron, wool and woolen
felts, lumber, screw machine products, high speed drills and other
tools, and even varnishes and stains have all scrambled up on the
bloody shoulders of war, and will not come down except a golden
ladder be provided. True, the production in America of many of
these commodities is greater to-day than it has ever been before.
Approximately thirty-six million tons of pig-iron have been turned
out of American furnaces during the past twelve months, the largest
output recorded in the history of the industry.
At first glance it would seem that this abnormal production
would drive the price down below normal, yet such is not the case.
Before the war Germany exported to the United States some nine
million tons of pig-iron yearly. This tended to steady the market,
and maintain an even price. Since the war no German metal has
been brought into this country, and Germany has not only kept for
her own use all iron smelted within her borders, but has bought up
millions of dollars worth of iron and iron products, which have gone
directly to further her military operations. Germany is not alone
in this respect, every warring nation in Europe is bombarding
America with broadsides of gold, and our manufacturers are run-
ning their factories night and day, that they may have the more to
surrender.
The gods of war have cornered the iron and steel markets, and
no matter how great the production may be, they will not allow
their important plans to suffer merely because a piano manufacturer
wants a few bars of pig-iron turned into piano-plates. Europe
needs military supplies, and if America wants pianos, then let her
pay handsomely for them. So the manufacturer finally gets his
plates, but he pays, and pays well for them.
Similar conditions will be found in the other industries, but the
above illustration is sufficient. Pianos will cost more because of
the increased price of raw material. There will be a continuous
and increasing demand for pianos during the next year. The manu-
facturer must supply this demand. But unless the manufacturer sells
his wares at a figure which gives him the ordinary profit he deserves,
which figure will of necessity be greater than his present selling-
price, he had much better refuse to supply the market and volun-
tarily go out of business.