§ 77. Mr. Manderasked the President of the Board of Trade whether he will make it clear that manufacturers, wholesalers and retailers are not justified in increasing prices of articles in stock, solely by reason of the fact that the replacement cost would be higher, and that such action will be condemned as profiteering?
§ Mr. StanleyThe cost of replacement of stocks must clearly be taken into account by a manufacturer or trader in fixing his prices, but it does not necessarily follow that he would always be justified in increasing them by the full amount of the anticipated replacement cost. I understand that it is a common practice in trade, where there are stocks in hand, to strike a balance between the present cost and the replacement cost.