Demobilization : $b our industrial and military demobilization after the armistice, 1918-1920Crowell, Benedict
History
Demobilization : $b our industrial and military demobilization after the armistice, 1918-1920
Crowell, Benedict
United States. Army. American Expeditionary Forces -- Demobilization; World War, 1914-1918 -- United States
In selling directly to the consumer, the War Department adopted the
policy of pricing goods at four-fifths of the prevalent retail market
prices. Since the cost of living had begun to decline in late 1919 and
the early part of 1920, this policy meant a loss to the Government,
which had paid war prices for the supplies; but it was not a large
loss. On the average, the retail sales brought back nearly 80 per cent
of the original cost of the goods sold. The sales expenses came to
about 10 per cent of the money received.
The War Department did everything in its power to make the stores
attractive to the public. It stocked them with a wide range of articles
and advertised them heavily. A press bureau was established in
Washington, and the newspapers devoted acres of space to the publicity.
In spite of the propaganda, however, the response of the public was
not so unrestrained as the outcry against the costs of necessaries
might have led one to expect. (To be sure, the Government, naturally,
could not set up its stores in the high-rent districts--the districts
most convenient to the retail customers.) The army retail stores did
business at the rate of approximately $5,000,000 a month--not much
for 110,000,000 potential customers. As the sales went on it became
evident that, although the protest against high prices was practically
universal, only the thrifty minority was willing to step across the
line of convenience and custom in order to secure lower ones. The rest
preferred to grumble and follow their lines of least resistance.
Yet it is probably true that the retail stores benefited all, since
the continued sale of great quantities of surplus military supplies
at reduced prices doubtless had an effect in bringing down commercial
prices. Although only some 350 items in the Army’s supply list were
applicable to retail selling, this range, after all, was considerable.
In the subsistence list it ran from Apples, Evaporated, to Vinegar, and
in general supplies from Arctics, Cloth Top, to Whips, Artillery. The
Surplus Property Division even sold a few motorcycles at the stores.
Far overshadowing the retail sales in quantities of goods moved were
the sales to jobbers, dealers, and speculators, by informal bids on
advertised lists of supplies. The sales headquarters in Washington and
the zone offices became busy markets for months after the armistice
as the War Department got rid of the surplus supplies procured by
the Director of Purchase. As stated, there were regular commodity
days--textiles were sold on Mondays, raw materials on Tuesdays, and so
on. At the Monday sales the Surplus Property Division had taken in, by
February 20, 1920, nearly $66,000,000 paid for clothing and equipage
alone. These sales benefited the general public in that they usually
resulted in the goods being sold at retail by salvage companies or by
regular mercantile houses at reduced prices.
Public-domain text, read in full here on John Shaqi.
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